In a landmark ruling, the South Korean Supreme Court ruled that businesses that file for damages against striking workers must consider individual strikers’ level of involvement in strikes that lead to disruptions in production. This decision aligns with the legislative intent of the proposed “yellow envelope law,” an amendment to the Trade Union and Labor Relations Adjustment Act, which aims to limit the liability of trade unions and their members in relation to damages incurred during labor disputes.

The court issued the ruling in response to a pair of lawsuits lodged by Hyundai Motor Company against members of the Korean Metal Workers’ Union. Hyundai argued that their strikes led to considerable losses in production. Lower courts initially found that all union members participating in the illegal actions were liable for damages. However, the Supreme Court underscored that these judgments did not appropriately consider the unique circumstances of each union member involved.