PUBLICATIONS & REPORTS

Contents Introduction

Why is Labor so Militant in South Korea?

South Korea and Japan have adopted essentially the same labor institutions: lifetime employment practice, company unionism, and a seniority-based wage and bonus system. Apparently, these institutions have successfully resulted in a high level of cooperation between Japanese labor unions and management. But Korean labor unions are much more militant and hostile to management than Japanese unions as evidenced by strike intensity data. Why is Korean labor so militant? This research identifies three types of factors responsible for Korean labor militancy. First, among sociopolitical factors are i) the obsolescence of authoritarianism and subsequent abolition of direct government control of labor relations and ii) the dominance of the age-cohort of young assertive workers in theworkforce. Second, the unique features of industrial structure and policy in Korea such as the chaebol system and the availability of low interest bank loans have encouraged union militancy as an unintended consequence. Third, the regulatory and legal environment for labor relations, heavily influenced by governmental paternalism, does not foster development of an autonomous labor relations culture. While the government has given up authoritarian control of labor, it has yet to give up the urge to guide labor relations. What Korea sorely needs in order to resolve the current labor militancy problem is the development of an autonomous labor relations culture. Individual workers and management should learn to bargain and to cooperate responsibly through direct dialogue.