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Recent events in Korea point to that country's industrial relations diverging from those of the other Asian newly industrialised economies. In this article it is argued that the state-centred thesis of industrial relations in Asian newly industrialised economies requires modification in order to account for Korean divergence. The article therefore traces the changing fortunes under different political regimes of organised labour and the large-scale family businesses, the chaebol. It concludes that identifying the long tradition of labour protest - however suppressed under economic growth beset governments - and the unique and privileged role of the chaebol in Korea's political economy is essential for explaining industrial relations in Korea today.
Introduction
The Republic of Korea, or South Korea (hereafter Korea), has a population of just under 45 million. In 1962 around 30 percent was urbanised; today, as a result of rapid industrialisation, it is 78 percent, less than for totally urbanised Hong Kong and Singapore, but higher than for Taiwan (58 percent). Ethnically Altaic, about half of Koreans profess Buddhism, while Christianity and a strong Confucian heritage also shape societal values and inform behaviour. The labour force is approaching 20 million with a participation rate of 61 percent (74 percent for males). A tight labour market has led to an increasing employment of migrant labour, but Korea reports to the International Labour Office (ILO) the longest weekly working hours of any reporting country.
Due to government having identified and set the imperatives for economic growth through industrialisation, most analyses of Korean industrial relations emphasis the central role of the state in industrial relations. It is assumed that the state is the architect of industrial relations and the structure of the country's trade union movement. This view is endorsed by Park and Lee (1995: 33) with their statement that:
The performance of the Korean economy during the past 20 years has been well publicised. Its high rate of growth, led by the state, was largely made possible by the stable supply of cheap labor due to repressed labor rights. Because of the nature of Korea's economic development, the role of the state in the labor market is important in explaining the consequences of national economic growth.
Deriving from this emphasis is the recognition of the...