Analysis of Employment Trends Among South Korea’s Top 500 Companies Amid Rise of Dispatch and Contract Work: Leaders Index Report

South Korea’s largest companies have sharply reduced their reliance on temporary and dispatched workers following the implementation of the so-called “yellow envelope law,” according to a report by Edaily. The legislation, which aims to strengthen protections for subcontracted and dispatched labor, has led to a significant decline in the use of such employment arrangements across major corporations.

The report, based on an analysis of employment patterns among the top 500 companies by revenue, indicates that firms are adjusting their workforce strategies in response to the legal changes. While the exact scale of the reduction was not specified in the source material, the shift reflects broader corporate efforts to comply with new labor regulations governing dispatching and subcontracting practices.

This development comes amid broader trends in South Korea’s corporate labor market, where recent data shows a mixed picture of hiring and layoffs among major firms. According to multiple verified reports from February 2026, the country’s top 500 companies collectively reduced employment by more than 6,700 positions in 2025, representing a 0.4 percent decline from the previous year.

Among these companies, hiring was concentrated in sectors benefiting from strong global demand, particularly beauty and semiconductors. CJ Olive Young, the nation’s leading health and beauty retailer, reported the largest net increase in employment, adding 2,518 workers—a 21.1 percent rise year-on-year—driven by expansion of its store network and rising demand for K-beauty products.

SK Hynix followed as the second-largest job creator, adding 2,188 employees, a 6.9 percent increase, as it expanded its research and development and manufacturing workforce in response to semiconductor market recovery. Other notable contributors to job growth included Korea Railroad Corporation, which added 1,942 workers (up 8.3 percent), Samkoo INC with 1,266 new hires (up 10.5 percent) and Coupang, which increased its workforce by 1,096 employees (up 9.8 percent).

Conversely, nearly 52.3 percent of the surveyed companies reduced their workforce in 2025. Among the country’s top conglomerates, only SK Group, Hanwha, and Hanjin reported net increases in employment, adding 773, 370, and 128 workers respectively. In contrast, major manufacturers and retailers such as LG Electronics, Emart, Homeplus, LG Display, Lotte Shopping, and Hyundai Motor each cut over 1,000 positions, reflecting ongoing margin pressures in legacy industries.

The shift away from temporary and dispatched labor under the yellow envelope law may influence how companies structure their workforce moving forward, particularly in industries where flexibility has traditionally relied on non-regular employment. As firms navigate compliance with the new regulations, changes in hiring practices could affect both operational models and labor relations across South Korea’s corporate sector.

While the Edaily report highlights the decline in dispatched and subcontracted workers as a direct outcome of the legislation, broader employment data suggests that companies are simultaneously recalibrating their overall headcount based on sector-specific performance. The technology and consumer-facing industries benefiting from export growth continue to expand their workforces, while traditional manufacturing and retail operations undergo restructuring.