Globalization and labour rights: the case of Korea

In this contribution the background of Korean industrial relations (IR) is reviewed, followed by analysis of more recent changes with a special focus on globalization issues. We argue that globalization has both positive and negative effects on IR issues in Korea. There was a positive side of globalization in terms of worker rights, hence basic labour rights have been improved to meet global labour standards. However, there was a negative side to it as well in terms of working conditions and employment practices, which brought substantial setbacks for unions and rapidly eroded their power base. This negative side has more clearly appeared after the recent economic crisis.     

Conclusion: Korean business and management – the end of the model?

Recent financial crisis has raised questions about the underpinnings and longevity of economic success in Asia, and has reminded us to be sceptical of pundits and the eponymous populist predictions relating to the region. Several perspectives can guide the analysis and evaluation of industrialization, from ‘state’ versus ‘market’, ‘internal’ versus ‘external’, and ‘macro’ versus ‘micro’. Companies in Korea as ‘latecomers’ have pursued ‘catch-up’ strategies. However, Korean corporate capabilities reside in a restricted number of industries, firms and functions (production), and are poor elsewhere, such as in marketing, technology (design and development) and organization, and small and medium-sized enterprises. Furthermore, many factors regarded once as sources of Korea's success are now seen as weaknesses. The future challenges facing Korea include its dirigiste economy, organizational structures and governance, financial transparency and labour market flexibility. While there are undoubted problems, its urgent tasks are not insurmountable.