Stainless steel-based WC composite layers fabricated by a laser cladding technique, have strong mechanical strength. However, the wear resistance of WC composite layers is not sufficient for use in severe friction and wear environments, and the corrosion resistance is significantly reduced by the formation of secondary carbides. Low-temperature plasma nitriding and carburizing of austenitic stainless steels, treated at temperatures of less than 450 °C, can produce a supersaturated solid solution of nitrogen or carbon, known as the S-phase. The combined treatment of nitriding and carburizing can form a nitrocarburizing S-phase, which is characterized by a thick layer and superior cross-sectional hardness distribution. During the laser cladding process, free carbon was produced by the decomposition of WC particles. To achieve excellent wear and corrosion resistance, we attempted to use this free carbon to form a nitrocarburizing S-phase on AISI 316 L stainless steel-based WC composite layers by plasma nitriding alone. As a result, the thick nitrocarburizing S-phase was formed. The Vickers hardness of the S-phase ranged from 1200 to 1400 HV, and the hardness depth distribution became smoother. The corrosion resistance was also improved through increasing the pitting resistance equivalent numbers due to the nitrogen that dissolved in the AISI 316 L steel matrix.