Industrial Relations in Korea:Focusing on Developments Since the 1997~1998 Financial Crisis

This paper examines recent changes and developments in industrial relations in Korea, with a focus on the impact of the 1997~1998 financial crisis. We believe that the 1997~1998 financial crisis, along with the Great Labor Struggle in 1987, mark turning points in industrial relations in Korea. More important, the financial crisis not only altered employment practices, but it also transformed patterns of interaction among industrial relation actors. To illustrate our arguments, we discuss the development of Korean economy, the characteristics of Korean labor market, and the basic features of the three actors (government, labor, and employer) of industrial relations. We then focus on the effects of the financial crisis on industrial relations in various aspects of Korean labor market. Negative outcomes such as a polarization of labor market and an extensive use of contingent workforce have generated serious concern among policymakers and scholars. On the other hand, the crisis provided an opportunity for the three actors in industrial relations to formulate a new set of strategies to respond to recent changes.