Foreign Firms Struggle with Korea's Labor Market

A recent survey highlights that more than half of foreign-invested companies in Korea view labor relations as highly confrontational. This perception is influencing their long-term investment decisions, with some even considering withdrawal due to stringent labor regulations.

Comparative Analysis of Labor Markets

Foreign investors rate Korea's labor-management cooperation lower than that of the US, Germany, and Japan, with China being the only major competitor rated worse. The rigidity of Korea's labor market is a significant concern, with 64% of companies describing it as "rigid."

Call for Reform

Key areas for improvement include political strikes, public inconvenience caused by strikes, and militant union activities. Suggestions for fostering cooperative labor relations focus on community building, reducing militant mindsets, and avoiding ideological struggles.

Government's Role in Attracting Investment

To revitalize foreign investment, companies urge the government to enhance labor flexibility, enforce laws against illegal union activities, and promote diverse employment forms through deregulation.