98%(103)101 out of 103 people found this document helpful
This preview shows page 1 - 2 out of 3 pages.
Jelkin FerrandOL 3258-1 Case Study: Acquiring a Company in South KoreaKorea has one of the strangest labor markets in the world, according to an OECD report released recently, largely because the country has a handful of statistical anomalies caused by demographic changes and record-keeping methodologies (Sung-jin, 2016). The labor market in South Korea is rigid; the government regulates it heavily and it leans towards flexible practices. It ranks 121 out of 140 countries in labor-market flexibility, according to the World Economic Forum – on that note, The World Economic Forum ranks South Korea 86th for overall labor market efficiency and 106th for flexibility in hiring and firing. Currently, the ruling party hopes to push the biggest labor reform legislation in two decades through the current session of parliament; under the claim that: “limited labor flexibility makes it harder to build the service sector in an economy dominated by companies like Samsung Electronics and Hyundai Motor” (Nathan-Park, 2015). South Korean leaders are pushing a revamp in labor laws that would change the system of stable employment and seniority-based remuneration that was part of a social contract enforced by the unions and underpinned South Korea's breakneck economic growth into the 1990s (Choonsik, 2015).