Practices in South Korea
The South Korean employment and
labor laws are centered on the historical and cultural experiences of its
citizens. The key source of the employment and labor laws in the county is the
Constitution, the Labor Standards Act, collective bargaining agreements, and
the individual employment contracts. These employment and labor laws are
arrayed in the legislation that was primarily drafted following the end of the
Korean War (Lee, 2017). Nonetheless, most of the
laws are similar to the Japanese labor law that originated from the German
labor regulations. However, the current employment and labor laws were drafted
when the country started practicing democracy in the early 1990s. It was during
this time the South Korean labor unions become organized and politically
active. Due to the limited time between the occurrence of changes and the
present, employment and labors in the nations are still progressing (Lee, 2017).
Unlike the U.S. employment and
labor laws, South Korean labor regulations demonstrate criminal sanctions for
specific employment and labor malpractices. The Korean Labor Standard Act and
the Labor Relations Adjustment Act integrates such provisions. The Korean labor
market is inflexible as a result of the fundamental philosophical differences
concerning employment as stipulated in the Article 32 of the South Korean
Constitution, that specifies the entitlement of the Korean workers to
employment (Park, 2016). The South Korean people
expect the government to develop employment and labor regulations that favor
them. Recently, when the country elected a new president, Moon Jae-in from the
liberal party, he pledged to increase the minimum hourly earnings by more than
40% (Lee, 2017). He also vowed to enhance the
quality of working life by minimizing the number of working hours whereby every
employee was expected to work for a maximum of 52 hours per week. Therefore, Chapman
Auto Parts needs to consider these labor policies before expanding to South
While many countries rely on labor
unions to determine the salary of an employee, South Korea has adopted the conventional
method of determining the wage of a worker that integrates the Hobong model.
Under this model, a solemn scale based on the job title and period of service
of a worker determines the wages of an employee (Park,
2016). However, many multinational corporations are slowly replacing it
with modern ways of determining the wages based on educational merit and
experience, but it’s still popular in enterprises that have a large workforce (Jae-jin Yang, 2015). Therefore, the Director of Human
Resource at Chapman Auto Parts need to modify the organization’s expectations
as to what entails the labor policies in South Korea. Further still,
contemporary South Korea operates in an industrialized democracy with labor
policies almost similar to the United States. Hence, the company will not
experience difficulties with labor policies and practices in its new division.
Yang, & ???. (2015). Why Are Active
Labor Market Policies Underdeveloped in South Korea? Korean Political
Science Review, 49(6), 85-108.
J. (2017). The labor market in South Korea, 2000–2016. IZA World of Labor,
H. (2016). An Analysis on the Division of Labor in the South Korea-U.S.
Combined Forces. Peace Studies, 24(1), 81.