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In conclusion, South Korean labor practices have both advantages and disadvantages. Thoughstrict, overall, South Korea government sides with organizations when it comes to regulations. South Korea also offers lower wages than the U.S. and has favorable labor market conditions. However, labor laws are still evolving, which means there are many unknowns concerning business operations there. For example, while labor costs are generally lower, considerable wage
8-1 Case Study: Acquiring a Company in South Koreagaps exist between males and females. This may lead to new legislations to minimize gaps and cost organizations more. In terms of labor costs, labor costs in the U.S. has been decreasing, meaning that productivity is rising faster than labor costs. Labor costs in the U.S. averaged 111.10 Index Points at the end of 2016. However, many countries, which are often considered asdestinations for outsourcing, wage increases have outpaced labor productivity growth. South Korea has faced rising labor costs. reaching an all-time high of 148.10 Index Points in the first quarter of 2016. (US DOC, 2017). Chapman should keep a watchful eye on these trends.
8-1 Case Study: Acquiring a Company in South KoreaReferences:Hubbard, R., O’Brien, A. (2014) Macroeconomics. 5th ed. Pearson Education Limited.Hyun, C. W., & Flemer, R. R. (2014, June 3). Where US And Korean Labor Laws Divide - Law360. Retrieved January 29, 2016, from -and-korean-labor-laws-divideNathan-Park, S. (2015). South Korea’s Labor Market Reform Struggles. WSJ. Retrieved from: Sung-jin, C. (2016). OECD report shows Korea has 'strange' labor market. Retrieved from: US Department of Commerce (2017). Assess Costs Anywhere; Labor Costs. Retrieved from: