Report/Korea/NGO/March 1996

Economic and Social Rights

of Workers

in South Korea

Submitted to the 52th Session of

the UN Human Rights Commission

Agenda Item

on Economic, Social and Cultural Rights

KCTU (Korea Confederation of Trade Unions)

PSPD(People's Solidarity for Participatory Democracy)

Economic and Social Rights of Workers

in South Korea

Contents

Introduction	1

1. Violations of Basic Rights of Workers and Recommendations

Overview	3

1) The Prohibition of Multiple Trade Unions -- Union Monopoly	3

2) The Prohibition of "Third Party Intervention"	4

3) The Prohibition of Political Activity	4

4) Limitations on the Right to Strike	5

5) The Denial of Freedom of Association for Public Servants	5

6) The Prohibition of Strikes by Public Officials and Workers in the defense

industry	5

7) The Denial of the Freedom of Association for Teachers	5

8) Interference by Administrative Authority	6

9) Compulsory Arbitration for Public Enterprises and Emergency	6

Recommendations to the South Korean Government	7

Box : Kwon Young-kil's Arrest - Continuing Suppression

of Trade Union Leadership	8

2. Wages and Working Conditions

Overview	10

1) Wages	10

2) Wage differentials between large and small or medium-sized enterprises	11

3) The Minimum Wage Act	11

4) Working Hours	12

5) Industrial Safety and Health	13

Problems in the governmental statistics for industrial accidents	13

The high accident rate	13

Escalating degree of accidents	14

Rate of accidents by industry, enterprise size, and length of service	15

3. Social Security of Workers

1) Industrial Accident Compensation Insurance Act (IACIA)	16

Restrictions on Selecting Recipients	16

Low State Liability	17

Workers' right to participation in the decision-making processes

concerning  occupational safety and health	17

2) Employment Insurance System	18

Low Level of Unemployment Allowance	18

Restrictions on Selecting Recipients	19

Low State Liability	20

4. Employment Situation

1) Employment Status	21

2) Status of Unemployment	23

3) Labour Shortage in Small and Medium Sized Companies	24

4) The New Employment System	25

5) Increasing Unemployment of Young People	25

6) Expansion of Irregular Employment	26

7) Unstable Employment of Women Workers	26

5. List of Recommendations Issued by International

Human Rights Bodies -

Concerning Workers' Rights in South Korea and other references	28

Tables

Comparison of Weekly Working Hours to Other Nations	12

Characteristics of Industrial Accidents	13

Comparison of rate of industrial accidents	14

Status of industrial deaths	14

Tendencies of accident rate and severity by industry	15

Rate of IACIA coverage of regular workers by year	16

Rate of industrial accidents by size of enterprise (in 1993)	17

Comparison of estimated unemployment benefit

and minimum living cost	18

Number of enterprises and workforce by size of enterprise	19

Size of unemployment by size of enterprise	19

Trends in Labour Force Participation (thousand person, %)	21

Trends of Employment According to Industry (unit: thousand,%)	22

Composition of Employment Status in the Non-Agricultural	22

Full-time Employment According to Job Category and	23

Full-time Employment in Large Companies with more than 500	23

Unemployment by Age (%)	24

Unemployment According to the Level of Education  (%)	24

Introduction

South Korea ranks as one of the top fifteen economies in the world today, with the twelfth largest trading capacity and with a per capita GNP of US$10,000. Unfortunately, such dazzling economic success does not correspond to proper observance or implementation of international labour rights and norms in the domestic sphere despite frequent warnings and recommendations by international bodies. In terms of her social welfare provisions, South Korea ranks close to the bottom in the international community. South Korea still remains as one of the nations with the longest working hours and the highest rate of industrial accidents. Its trade union membership is lower than any other OECD member country due to the constant and consistent suppression of trade union activity and a faulty system of industrial relations carried over from the decades of dictatorship and authoritarian regime. The state-led economic growth model (the "development dictatorship model"), the basis of the Korean economic miracle, has alienated workers from the economic decision-making process and has led to an unequal distribution of wealth in the society. Unjust legal provisions still exist to curb the basic rights of the workers. Thus, if South Korea wishes to join the ranks of industrialized nations as shown by its active attempts to secure the membership of the OECD, domestic labour policy and practice must be reformed to meet international standards and to protect the social and economic rights of the Korean workers.

The economic policy of the civilian government of President Kim Young-sam since its emergence in 1993, concentrated on efforts to increase the international standing of the Republic of Korea, and the "globalization" (segyehwa) of the economy became the centerpiece of presidency. While the policy of "globalization" remains unclear, the government has pursued a rapid course in production and privatization based on the subordination of labour interests to economic interests. Also known commonly as "sharing the suffering," this policy has led to a worsening of labour conditions, including the suppression of independent unions, greater production quotas for workers, increased industrial accidents, broader implementation of "flex time" reducing overtime payments and longer work days, on the pretext of maintaining economic growth. The subsequent industrial restructuring has induced increasing unemployment, unstable labour market policies, and management strategies. Employment methods in the form of leasing labour, freer dismissal, and part-time labour receive no protection under the special law on small and medium companies, passed by the government without any consideration of the existing labour protection mechanisms. The introduction of the trainee program for foreign workers, inappropriate labour education programs and the limited unemployment insurance policy follows the same rein of governmental disregard of existing labour protection mechanisms. Tense labour relations generated by the incompetency of the government and the management to respond adequately to demands of the workers have resulted in export losses of 95 million dollars in the first months of 1995, an increase of 115-fold compared to the same period in 1994 (qtd. in Human Rights Watch/Asia 1995, 6).

The Kim government has also failed to live up to its promises of labour law reform. The government has quoted "uncertain economic conditions" and "an ensuing competitiveness crisis" as excuses for its delay in submitting the reform bill to the Korean National Assembly. All main legal restrictions on trade unions are still in place including the ban on the formation of trade unions in the public sector and state enterprises, in export processing zones, and in the public and private education system. The clause of "third party intervention" and the prohibition of multiple unions have severely curtailed the freedom of association, the right to organise, and bargain collectively. South Korea being a party to the ILO since 1991, has failed to abide by the basic ILO Conventions. Promises to reinstate dismissed workers have still to bear fruit.

1. Violations of Basic Rights of Workers

Overview

The Korean Constitution proclaims the protection of the basic trade union rights, i.e., the workers' rights to organize, to collective bargaining, and collective action.  Although some legal provisions restricting basic trade union rights have been partially revised since the massive labour upheaval in 1987, the Constitution and labour laws still contain articles which fundamentally restrict basic trade union rights. Korean workers are not allowed to form or join trade unions of their own choosing. Moreover, most labour disputes are considered as violations of labour laws and any participation would result in dismissals or imprisonment.

The International Labour Organisation (ILO) has repeatedly recommended the Korean government to repeal or reform the legal provisions which seriously restrict basic trade union rights.  The Korean government has not taken any relevant steps to reform violative labour provisions  and has upheld the argument of "inevitability" regarding the arbitrary application of basic trade union rights due to "certain economic conditions" and "an ensuing competitiveness crisis." Economic concerns have taken over the basic protection of labour rights.

1) The Prohibition of Multiple Trade Unions -- Union Monopoly

The Trade Union Act (Article 3, Clause 5) prohibits the establishment of multiple unions and is fundamental infringement on workers' right to organise at their own free will. This a basic right enshrined in the South Korean Constitution (Article 33) and the ILO Convention No.  87 (Article 2).  The government states that the law was designed to protect existing trade unions with weak support and to support their activities.

However, the prohibition of multiple trade unions introduced in 1963 exists to prevent the formation of a rival trade union that could counter government-controlled unions or national trade union confederation. This provision outlaws any alternatives to the company-sponsored unions or the union federations created under the past military dictatorships. This has worked to the disadvantage of the workers in denying them participation in the union of their own choosing and has resulted in the labour movement lacking legitimacy despite the massive participation. Similarly at the industry-level, industrial federations formed in 1987, were unable to obtain legal recognition due to the existence of the government-recognised and sponsored Federation of Korean Trade Unions (FKTU). This is clearly a violation of labour rights and the freedom of association recognized in international labour law as it makes it impossible for workers to challenge the leadership or the official status of government-sponsored unions.

Under intense governmental control and suppression, Korean trade unions and federations have not been entirely immune from yellow unionism.  The trade unions organised after 1987 created the "democratic union camp" and have culminated in the organisation of the Korean Confederation of Trade Unions (KCTU), the national center of all democratic trade unions. The KCTU boasts over 500,000 members and over a thousand company-level unions. Being a competitor to the FKTU, the government has declared the KCTU illegal and has refused formal registration as a labour organisation. KCTU leadership has been arrested and is awaiting trial.

2) The Prohibition of "Third Party Intervention"

Article 12(2) of the Trade Union Act and article 13(2) of the Labour Dispute Adjustment Act stipulate that "any person other than a worker who has actual employment relations with the employer or the concerned trade union...shall not engage in an act of interference" to influence the formation of a trade union or instigate a dispute. Any "interference" can include anything from individual advocacy to organized, peaceful displays of solidarity. The ban on "third party intervention" has been used to grossly violate the right of free expression in the context of labour disputes. It has been used to justify criminal prosecution and the imprisonment of union leaders for their non-violent exercise of their legitimate trade union activities.

According to the Korean government, the prohibition of "third party intervention" protects the autonomous nature of a trade union by preventing radical external forces from intervening in its activities. The prohibition of "third party intervention" was introduced in the 1980s by the illegitimate National Security Legislation Council established by former President Chun Doo-hwan (who seized power in a military coup in 1980), for the sole purpose of blocking the democratic trade union movement. This is a clear violation of the autonomous nature of unions and the violation of the workers' right to the freedom of expression and labour activity guaranteed by the Constitution.  The stipulation prohibiting "third party intervention" contradicts the principle of legality (nulla poena sine lege).  It is difficult to find a labour law provision of this repressive nature in other countries. The provision has resulted in the criminal prosecution and imprisonment of a number of union leaders on the grounds of their support for activities of other trade unions.

In 1987 and 1993, the ILO decided that this provision was incompatible with article 3 of ILO Convention No. 87 as a serious restriction on the free functioning of trade unions." In August 1995, the United Nations Human Rights Committee declared that imprisonment under "third party intervention" violated Article 19(2) of the International Covenant of Civil and Political Rights, which guarantees freedom of expression. Recommendations and further warnings were sent to the south Korean government to repeal the unfair practices of the provision but to this day, no government action has been taken.

3) The Prohibition of Political Activity

Under article 12 of the Trade Union Act, Korean trade unions are completely prohibited from political participation on the basis that should trade unions engaged in political activity, their basic purpose of improving and maintaining working conditions would be neglected. However, in light of the history of the labour movement, it can be ascertained that the improvement working conditions and the status of workers can only be accomplished through political participation. Consequently, the freedom to participate freely in politics should be guaranteed.  Labour reform also constitute part of the democratisation process.

4) Limitations on the Right to Strike

Despite the fact that the right to strike is guaranteed by the Korean Constitution, the actual exercise of workers' right to strike is extremely restricted. The free and full exercise of the right to strike is restricted by as many as 11 legal provisions. Public officials are deprived of the right to strike according to article 12(2) of the Labour Dispute Adjustment Act.  In public utility enterprises, which includes public transportation, banking and finance, petroleum refining, broadcasting, communications, etc., workers cannot go on strike if the government refers the labour dispute over to compulsory arbitration.  Acts of labour disputes are restricted by a number of provisions so that Korean workers cannot lawfully exercise their right to strike.  In effect, union leaders should be prepared for dismissal and criminal prosecution when undertaking acts of labour dispute.

5) The Denial of Freedom of Association for Public Servants

Public servants are prohibited from forming or joining trade unions in accordance with article 33, clause 2 of the Korean Constitution, article 8 of the Trade Union Act, article 66 of the National Public Officials Act, and article 58 of the Local Government Employees Act.  According to the legal prohibitions, the right to association, collective bargaining, and collective action of public servants are restricted because they have a duty to "be servants of the entire people" as stated in article 7 of the Constitution.  This is a gross misinterpretation of article 7 which merely expresses that the duty of public officials must not be restricted to a small section of the population, a certain class or political faction. It does not have direct relevance to  labour relations concerning public servants, or their rights to organise, bargain, and act collectively. Thus, the restrictions on the basic labour rights of public servants is groundless.

6) The Prohibition of Strikes by Public Officials and Workers in the Defense Industry

Under article 12(2) of the Labour Dispute Adjustment Act, public officials and the workers employed in the defense industry are prohibited from undertaking acts of labour dispute, on the pretext of national security. The right to strike cannot be denied merely on the basis of the workers' status as public officials and workers engaged in the defense industry.

7) The Denial of the Freedom of Association for Teachers

Public  school teachers  are  classified  as educational public  servants and under the  National Civil Service, have  been prohibited from organizing, engaging in collective bargaining,  and taking collective action. The Private School Act extends this prohibition to private school teachers.

Due to such  definitions of school teachers, the south  Korean government contends that the  teachers' unions  have no  legal  basis because  teachers  are public  servants and  not workers.  Accordingly, teachers  have been  dismissed -  1,500  in 1989  - and  arrested for activities in support of an  independent union known as the Korean Teachers and Educational Workers' Union (chonkyojo). All these run counter  to the ILO Convention 151 which protects the rights of  public workers to organize. It mandates  that public service organizations "shall enjoy complete  independence from  public authorities." In  May 1995, the  UN Committee  on Economic,  Social,  and Cultural  Rights  recommended  that the  south  Korean  government "immediately amend its laws and regulations concerning the freedom to form trade unions and the right  to strike.... In  particular, measures should  be taken to  ensure that teachers,  civil servants, and others have the right to form trade unions and to take strike action."

8) Interference by Administrative Authority

The Trade Union Act has a number of provisions that empower the administrative authorities to intervene unjustly in a trade union's autonomous operations. The typical provisions are: authority to order modification of a union's constitution (article 16); authority to order modification of a union resolution and disposition (article 21); authority to nominate a convocator of a union's extraordinary congress (article 26(3) and (4)); authority to investigate into a union's internal affairs (article 30); and authority to order the modification or nullification of collective agreements (article 34(3)).  These provisions are in direct contradiction to the union's right to autonomous operations enshrined in article 3 of ILO Convention 87 which states, "workers' and employers' organizations shall have the right to draw up their constitutions and rules, to elect their representatives in full freedom, to organise their administration and activities and to formulate their programmes.  The public authorities shall refrain from any interference which would restrict this right or impede the lawful exercise thereof." In reality, the Korean government has effectively curtailed trade union's autonomous decision-making.  In the first half of 1993, for example, the government conducted 393 investigations into unions' internal affairs in their efforts to put pressure on the democratic unions to withdraw from the Korea Trade Union Congress (Chonnohyup).  In early 1994, the government threatened the exercise of its investigation power, targeting trade unions undergoing wage negotiations and collective agreements in order to compel them to follow the government's restrictive wage policy.

9) Compulsory Arbitration for Public Enterprises and Emergency Adjustment

Under the terms of article 30(3) of the Labour Dispute Adjustment Act, the Labour Relations Commission may refer a dispute in public enterprises to arbitration upon request of the administrative authority or ex officio.  Under the terms of article 40(1) of the same Act, the Minister of Labour may render a decision for an emergency adjustment in case an act of dispute is related to the public interest, or is of a large scale, or of a specific character, if such an act of dispute carries with it the danger of impairing the national economy or endangering the daily life of the general public.  Once referred to compulsory arbitration or if a decision in emergency adjustment is rendered, a strike is banned for a certain period, effectively rendering all acts of dispute at public enterprises impossible.  Moreover, article 4 of the Labour Dispute Adjustment Act stipulates a broad and superficial category of public utility services, including the public transportation industry, water, electricity and gas supply, petroleum refining, public hygiene and medicine, banking and finance, broadcasting, and communications.  Consequently, the probability of the act of dispute to be undertaken, remains at the sole discretion of the administrative authority and the Labour Relations Commission. In this case, the nominal right to collective action is virtually useless. In 1993, the government invoked an emergency adjustment for the strike at Hyundai Motors to exert pressure on the trade union to accept the company's compromise on collective agreement.

Recommendations to the South Korean Government

We call on the South Korean government being a party to international bodies protecting labour standards and labour rights, to respect and enforce existing international labour standards and international legal mechanisms for protecting labour rights. The South Korean government should abide by the recommendations of international bodies on the reform of its violative labour practices and legal restrictions on the full expression of labour rights.

We call on the South Korean government to take prompt action in ratifying ILO Conventions No. 87, No. 98 and No. 151.

We call on the South Korean government to repeal legal provisions infringing on the three basic rights of association, collective bargaining, and collective action. The South Korean government should implement ILO's recommendations on "third party intervention" and "the prohibition of multiple unions" by revealing the relevant provisions of the Trade Union Law and the Labour Dispute Adjustment Act. The South Korean government must unconditionally release all unionists imprisoned under charges of "third party intervention" for their peaceful and legitimate expressions of labour rights.

We call on the South Korean government to respect the freedom of association of public servants including school teachers, public officials and workers in the defense industry.

We call on the South Korean government to implement new measures for protecting and enhancing working conditions for workers in small enterprises with less than five employees. Enterprises with less than five regular employees receive no protection from legal labour mechanisms or any kind of social security whatsoever. The Minimum Wage Act must be applicable to workers in such enterprises as the current minimum wage falls short of the actual living costs. Appropriate measures must be undertaken for industrial safety and health controls in small enterprises with less than five employees as the rate of accidents is alarmingly high at 3.32%.

We call on the South Korean government to improve the current industrial accidents insurance fund and the unemployment benefits and increase state subsidies for the proper implementation of the fund. The government should amend the current method of calculating insurance benefits and provide a reformed welfare system to guarantee the welfare of the workers.

We call on the South Korean government to implement a compulsory and comprehensive system of maternity and childcare benefits at all workplaces, to ensure that women enjoy equal opportunities of employment and equal working conditions. Discriminatory practices including recruitment, lower pay, low status job assignments, etc should be abolished.

We call on the South Korean government to take fundamental measures to ensure that the protection of all foreign workers be equal to Korean workers. Foreign workers face severe discrimination and exploitation and receive no social welfare benefits or the protection of their basic labour rights. Furthermore, the government should take steps to reform its foreign technical trainee system.

Arrest of Kwon Young-kil -

Continuing Suppression of Trade Union Leadership

On November 23, 1995, President Kwon Young-kil of the newly-launched Korean Confederation of Trade Unions (KCTU), the national centre for democratic trade unions, was arrested for his non-violent exercise of his trade union rights and for his peaceful exercise of freedom of expression. The arrest of KCTU President Kwon Young-kil, on the day KCTU filed for legitimacy from the Ministry of Labour, is a clear indication of the government's position on democratic trade unionism. The KCTU has been denied legitimacy by the  Ministry of Labour based on the legal prohibition of multiple unions "....when the organisation has the same organisational object as an existing labour union, or if it aims to interfere with the normal operation of such a union." This prohibition extends to trade union federations. The Korean government considers KCTU a threat to the existing Federation of Korean Trade Unions (FKTU), the only legally recognised trade union body.

Imprisoned labour leader Kwon Young-kil has been a respected journalist writing for the Seoul Daily News. From 1988 to November 1994, he has been the President of the Korean federation of Press Unions. Due to his involvement in the trade union movement, he was dismissed from his job two years ago.

The arrest warrant for KCTU President Kwon Young-kil has been issued since June 1994. He was accused of "third party intervention" for his support in the railway and subway strikes. The prohibition of "third party intervention" has been most frequently used in suppressing the legitimate rights of trade unionists. Article 13-2 of the Labour Mediation Act prohibits a "third person", meaning a person who has no immediate connection with a workplace where a dispute is taking place, from intervening in the dispute. Korean trade unions are formed at the individual company level and anyone outside the company becomes a "third party". Only a legally recognised industrial federation to which the union belongs to is permitted to give advice or intervene in the dispute. Anyone giving advice to union members about their rights or the conduct of trade union activities. The maximum penalty on conviction is five years.

President Kwon Young-kil has been accused of giving advice to trade union members in speeches he made to workers on strike (workers of Daewoo Shipyard, Hyundai Heavy Industries, Seoul Subway, Korean National Railroad), expressing his support and criticising the government for using armed police in breaking up strikes and in arresting the workers.

Besides the arrest of president Kwon, first vice-president Yang Kyu-hyun was also arrested on the same charges on February 1, 1996. Vice-president Yang has been in hiding since June 1994. As of December 15, 1995, a total of forty unionists have been imprisoned and more than twenty are still in hiding.

On March 13, 1996, Kwon  Young-kil was released on bail. His case is still pending in the Korean courts.

2. Wages and Working Conditions

Overview

The goal of strengthening economic competitiveness has once again become a national priority under the Kim Young-sam government.  The government stipulates high wages as the major obstacle to strengthening economic competitiveness and has raised the need to stabilize wages for the creation of an atmosphere more favorable to industries. The current labour policy of the government is based on wage suppression and tight control over labour to achieve the government's outward goals.

The Korean government claims that it has been providing equal treatment to labour and management allowing self-regulation and democratic conciliation in regulating industrial relations, improving the welfare of workers by efforts to prevent industrial accidents and occupational diseases, and decreasing the number of work hours per week.  The government points out it has decreased the number of work hours according to the Labour Standards Act, enacted the Minimum Wage Act, constructed housing facilities for workers, decreased wage differentials by implementing the "total amount wage system," and even enacted the Gender-Equal Employment Act to prohibit discrimination against female workers in recruitment, employment, wages, promotion, and retirement.  However, as of 1991, 51.6 per cent of all wage earners are not eligible for protection under the Labor Standards Act since they work at workplaces with fewer than five regular employees.  Also, 56.1 per cent of all wage earners are not protected under the Minimum Wage Law since their workplaces have fewer than ten regular employees.  Contrary to the government's assertions, work hours per week remain extremely long, and the minimum wage provided by the Law falls short of the minimum living costs.  Finally, the total amount wage system, instead of effectively solving the targeted problems, has led to even more problems.

1) Wages

The Korean government institutes wage guidelines (single digit percentage increases per year) to suppress wage increases.  In 1992, it instituted the "total amount wage system" in the pretext of decreasing wage differentials by limiting wage increases in large industries to no more than 5 per cent, and in low-wage small and medium-sized industries to no more than the percentage of increase in productivity.  The guidelines issued by Ministry of Labour's directions for wage negotiations in 1992 stated that the government would devolve responsibility for implementing the total amount wage system for government-invested or subsidized industries to the Economic Planning Agency, for provincial public utilities to the Ministry of Home Affairs, for financial or banking industries to the Ministry of Finance, and for each public-related industry to the related governmental agency or ministry.

The Korean government provides preferential treatment to private industries which observe its wage increase guideline, in the form of financial and administrative benefits and interim exemptions from tax probes.  For private industries which exceed the 5 per cent guideline, financial institutions are ordered to conduct greater credit investigations into the industries' finances, and individual companies will be at a disadvantage when bidding for public contracts.  The "total amount wage system" clearly violates workers' rights to autonomous collective bargaining and is merely in lieu with the government's overall restrictive policy of labour control.  The system invites disputes between labour and management in individual industries.  As a form of expedient policy, the system leads to wider gaps between negotiated wage increases and actual wage increases.  On the whole, the system has succeeded only in complicating and disrupting the wage negotiation system.

The scope of the "total amount wage system" which induces consultation between the Federation of Korean Trade Unions (FKTU) and the Korea Employers' Federation (KEF), is applicable to all workplaces.  The FKTU receives 7 billion won a year in governmental subsidies and enjoys legal status, from which other labour federations including the independent Korean Confederation of Trade Unions (KCTU) are excluded. Negotiations between the FKTU and the KEF do not represent the collective will of the trade unions under FKTU membership. Many workers are critical of such negotiations, and many member trade unions have withdrawn from the Federation.  Due to the lack of support from individual enterprises and unions, the FKTU has failed in its role as the legitimate representative of Korean workers' interests. As such, the total wage system, has been labeled a failure.

2) Wage differentials between large and small or medium-sized enterprises

A closer look at the industrial structure due to the government's policy towards small and medium-sized enterprises reveal many problems. The current economic policy which has increased the subcontracting of smaller companies by the conglomerates  decreases the solvency and security of the smaller businesses.  In 1994, trade unions of Hyundai Heavy Industries and Daewoo Shipbuilding demanded that their conglomerates  fulfill their social duties by helping to solve the problems facing smaller companies on subcontracts given by their respective companies.

3) The Minimum Wage Act

Many problems exist concerning the Minimum Wage Act.  The Minimum Wage Council which determines the minimum wage has been under fire for its undemocratic processes. The Council is composed of members representing workers, employers, and the public interest. Members who represent the so-called public interest are no more than mere spokespersons for employers' interests.  The selection of the workers who participate in the Council is also restricted.

The current Minimum Wage Act is not applicable to all workers, but only to those in workplaces with ten or more regular workers.  Moreover, the government is scaling back the scope and enforcement of the law.  As a result, many workers in small businesses with less than ten regular workers continue to receive very low wages.  Thus, in order to fulfill the original intent of the law, the scope of its application must be expanded to include workers in small businesses.

The Minimum Wage Council deliberates and decides the minimum wage of the upcoming year and submits its proposal to the Ministry of Labour.  The submitted proposal, however, falls short of the minimum living costs.  Currently, the monthly minimum wage of 264,420 won (1,170 won per hour) does not even allow workers to eke out a feeble existence.  Moreover, the rate of increase of the minimum wage continues to decrease every year, and it only increased by 7.8 per cent in 1994.  In 1988, the minimum wage ranged from 111,000 to 117,000 won a month.  In 1989, it was raised to 144,000 won (an average increased of 26.7 per cent); in 1990, to 165,600 (15 per cent increase); in 1991, to 192,700 won (18.8 per cent increase); in 1992, to 209,500 won (12.8 per cent increase).  After prolonged economic stagnation, in 1993, the wage increase was only 8.6 per cent which amounted to 227,130 won, and the rate of wage increases has continued to decrease.

4) Working Hours

For Korean workers, the number of work hours per week decreased from 54 hours in 1987 to 48.7 hours in 1992.  Despite this reduction, Korea still holds the record for the nation with the longest working hours per week in the world.

[Table]  Comparison of Weekly Working Hours to Other Nations

(Manufacturing sector, unit: hour)

Country	1987    1988     1989    1990     1991     1992

South Korea	a	54.0     52.6     50.7     49.8     49.3     48.7

Japan	a	41.3     41.8     41.4     40.8     40.0     38.8

Taiwan	a	48.1     47.5     46.9     46.5     46.5     46.5

Hong Kong	a	44.5     45.9     44.8     44.0     45.2     43.0

Singapore	a	49.2     47.4     48.6     48.5     48.7     48.7

US	b	41.0     41.1     41.0     40.8     40.7     41.0

Canada	b	38.8     38.8     38.6     38.2     37.8     38.3

Germany	b	40.1     40.0     39.9     39.5     39.2     38.9

UK	a	42.2     42.4     42.2     41.6     42.9     43.2

France	a	38.6     38.7     38.7     38.7     38.7     38.7

Sweden	a	38.4     38.5     38.5     38.5     38.4     38.5

Finland	a	32.1     32.1     31.8     31.3     29.6

Australia	a	37.3     37.9     37.7     38.1     37.6     37.9

South Africa	b	46.8     47.3     46.9     45.9     45.0

Source: ILO, Yearbook of Labour Statistics, 1993, Taiwan Statistics Office, Dec. 1992

* a= hours actually worked

* b= hours paid for

5) Industrial Safety and Health

Problems in the governmental statistics for industrial accidents

The ILO Recommendation No. 31 advises member states to establish a central department to collect and compile statistics relating to industrial accidents.  In South Korea, the Department of Industrial Safety under the Ministry of Labour produces statistics on industrial accidents.  However, the Department only deals with cases needing medical treatment of over four days and which is compensated according to the Industrial Accident Compensation Insurance Act.  Since the number of enterprises which are not covered by the Act is quite large, the statistics produced by the Department of Industrial Safety cannot be said to reflect the actual situation.  In addition, the government's statistics omit accident cases which are treated at the worksite, cases covered by medical insurance, and cases are not recognized as industrial accidents due to the lack of sufficient proof that they are job-related.  In short, the actual situation of industrial accidents is far more serious than the official data would indicate.

In particular, cases treated as work-site injuries without basis for compensation under the Industrial Accident Compensation Insurance Act are the most common form of industrial injuries. This practice conceals the actual rate of industrial accidents.  The  expansion in 1992 of the "Zero Accident Campaign" which started in 1979, has also contributed to the concealment of the real situation.  The campaign has stressed the need for safety education, as it asserted that more than 70 per cent of accidents were caused by workers' carelessness.  Moreover, safety education was linked to various reward systems in order to mobilize workers' support of the campaign.  This has been a superficial attempt to control the rate of accidents, rather than an actual attempt to improve the conditions at the workplace which cause accidents.

The high accident rate

The overall rate of industrial accidents for all industries in South Korea has decreased on the whole, from 5.91 per cent in 1965 to 1.30 percent as at 1993.

[Table] Characteristics of Industrial Accidents

(Unit: number of persons, %)

source workers   injuries   accident rate   severity   death rate

1965	161,050	9,470	5.91

1970	779,053	37,752	4.85

1975	1,836,209	80,570	4.39	3.29

1985	4,495,185	141,809	3.15	2.68	3.82

1987	5,356,546	142,596	2.66	2.90	3.29

1989	6.687,821	134,127	2.01	2.19	2.58

1990	7,542,752	132,893	1.76	2.30	2.90

1992	7,058,704	107,435	1.52	2.89	3.44

1993	6,942,527	90,288	1.30	2.73	3.18

Source: Analysis of Industrial Accidents, 1994, the Ministry of Labour

* 1) accident rate= (number of the injuries/workers) x 100

2) severity= (number of working days lost/working days) x 1,000

3) death rate= (fatal injuries/workers) x 10,000

However, in comparison to other countries, the rate of industrial accidents in South Korea is still very high relative to the level of economic development.

[Table]  Comparison of rate of industrial accidents

South Korea	Japan	Thailand	Singapore

rate of accidents	1.76(17.6)	0.57(5.7)	0.7(7.0)	0.93(9.3)

year	1990	1988	1987	1986

Source: Changes in Industrial Accidents and Severe Accidents, 1991,

the Korea Workers' Safety and Health Research Association

Escalating degree of accidents

Even though the number of industrial accidents has been slowly decreasing, the number of industrial deaths has increased from 1,273 in 1980 to 2,210 in 1993. The economic loss also increased from 312.5 billion won in 1980 to 4.657 trillion won in 1993.  In addition, the death rate for industrial accidents increased from 1.12 per cent in 1980 to 2.44 per cent in 1993.  In short, the degree of severity and magnitude of industrial accidents has escalated.  According to the recent ILO Yearbook of Labour Statistics, the rate of death per worker in Korea is 0.034 per cent, higher than that of South Africa and 34 times higher than that of Japan (0.001 per cent).

[Table]  Status of industrial deaths

year	total	no.  of injuries	no. of fatal injuries death rate

1970	37,375	639	1.6975

1975	80,570	1,006	1.23

1980	113,375	1,273	1.1285

1985	141,805	1,718	1.2190

1990	132,893	2,236	1.6892

1992	107,435	2,429	2.2693

1993	90,288	2,210	2.44

Source: Changes in Industrial Accidents and Serious Accidents, 1991,

Korea Workers' Safety and Health Research Association & the Ministry of Labour

Rate of accidents by industry, enterprise size, and length of service

Looking into the tendencies of industrial accidents by industry, the rate of accidents in the mining industry is decreasing though it still remains high. However, the severity of accidents is rapidly increasing, from 25.9 per cent in 1975 to 62.54 per cent in 1992.  Similarly, accidents in the manufacturing sector are decreasing, but the severity has been steadily increasing since 1980.  The severity of accidents in the construction sector has also been increasing since 1990.

[Table] Tendencies of accident rate and severity by industry

(Unit: %)

overall	mining	manufac-turing	electricity	gas	transpor-tation	constru-tion	rate : severity	rate : severity	rate : severity	rate : severity	rate : severity	rate : severity
1975	4.39	3.29	13.41	25.90	4.18	2.10	3.85	3.57	2.13	3.47	5.99	4.94
1980	3.02	2.58	10.99	23.50	2.96	1.95	2.42	2.36	1.38	2.71	4.52	4.06
1985	3.15	2.68	11.97	24.58	3.15	2.92	3.14	3.21	0.75	2.45	3.16	2.98
1990	1.76	2.30	11.55	55.79	1.87	2.00	1.54	1.85	0.61	1.18	1.98	2.71
1992	1.52	2.89	8.99	62.54	1.48	2.48	1.89	3.29	0.38	1.28	1.71	3.13

Source: Analysis of Industrial Accidents, the Ministry of Labour

The actual rate of industrial accidents by enterprise size shows that the smaller the size of enterprise, the higher the rate of industrial accidents.  In 1993, the rate of accidents is highest in enterprises employing ten or fewer employees, with a rate of 3.32 per cent. In particular, the accident rates in small-sized enterprises is also high in the manufacturing and construction sectors, with 4.73 per cent in manufacturing enterprises with fewer than five employees.  While the number of workers employed at enterprises with fewer than five employees is only 4.8 per cent of the total rate of employment, the percentage of injuries among them is far greater, at 12.3 per cent.  The number of employees at enterprises employing fewer than 50 persons is 28.1 per cent of the total employment rate while the rate of accidents is 43.5 per cent.  This shows that the rate of accidents at small and medium-sized companies is clearly a serious problem.

Industrial accidents are concentrated among workers who had been involved in less than six months in their type of employment.  In 1993, this came up to 51.9 per cent of the total injuries occurred. Adding the rate of 9.9 per cent (injuries among those whose service length is between six months and one year), the total rate of injuries among those who had been engaged in a specific employment less than one year reached 62.8 per cent.

3. Social Security of Workers

1)Industrial Accident Compensation Insurance Act (IACIA)

The Industrial Accident Compensation Insurance Act (IACIA) excludes some categories of businesses from its scope of application.  Workers covered by the Act amount to approximately 75 per cent of all regular workers.

[Table] Rate of IACIA coverage of regular workers by year

(unit: 1,000 workers; number of workers and percentage)

year	regular workers	workers covered by the IACIA

1981	5,374	3,456,746(64.3)

1982	5,583	3,465,746(62.1)

1983	6,009	3,941,152(65.6)

1984	6,337	4,384,589(69.2)

1985	6,714	4,495,185(66.9)

1986	6,976	4,749,342(68.1)

1987	7,662	5,356,546(69.9)

1988	8,114	5,743,970(70.8)

1989	8,635	6,687,821(77.1)

1990	7,563,655

Source: Changes in Industrial Accidents and Severe Accidents, 1991,

Korea Workers'  Safety and Health Research Association

Restrictions on Selecting Recipients

In the case of industrial accident compensation insurance, as for other social insurance, the statutory recipients are limited to those working in enterprises that hiring five or more regular employees.  This insurance excludes employees in financial and insurance sectors, wholesale and retail business, and certain service sectors because of their special characteristics.  Thus, as of 1992, only 37.3 per cent of the total number of employees are eligible for this insurance.  In particular, the ineligibility of workers in small enterprises for insurance is highly problematic, since it is here that workers are most prone to industrial disasters.  As shown in the table below, the rate of industrial disasters increases as the size of the full-time workforce decreases.  One reasons for this is that the smaller a company is, the more difficult it is to provide occupational safety facilities due to financial instability.  Therefore, employees in small enterprises work with almost no protection against accidents.

[Table]  Rate of industrial accidents by size of enterprise (in 1993)

( Unit: % )

size of company	below 10	10-15	16-29	30-49	50-99	100- 199	200- 299	300- 399	above 1000
accident rate*	3.32	2.08	1.84	1.45	1.35	1.26	1.20	1.13	0.66

* rate of industrial disasters: (number of injured persons/number of employees) * 100

Source : Analysis of Industrial Disasters, Ministry of Labour, 1994, "Present Situation of Korea's Social Insurance and Policy Objectives" p.116, Korea Council of Trade Unions, 1994.

Low State Liability

Again, the state liability is as low as less than 1 percent of the total income of the insurance fund while the liability of the insured is 96.5 percent as of 1992.  Moreover, the government pays only 14.8 per cent of the total administrative and managerial costs.  The state liability should also be increased for the industrial accident compensation insurance.

The determination of premium rates for industrial insurance in South Korea is depended on a system of differential rates proportional to past years' accident rates and the different classification of industries and individual enterprises. Korea's government-administered Industrial Accident Compensation Insurance is very similar to private insurance in this respect.  The government should appoint industrial accident experts to oversee the government's compensation system.

Workers' right to participation in the decision-making processes concerning n occupational safety and health

According to ILO Convention No. 155 article 19, "a worker is to report to his or her immediate supervisor any situation which presents an imminent and serious danger to his or her life or health, and the employer cannot require workers to return to a work situation where there is continuing imminent and serious danger to life or health." Although Article 26 of the Occupational Safety and Health Act of South Korea amended in 1994, recognizes the workers' right to stop working when there is imminent danger, there are no protective measures to ensure that the workers are not disadvantaged later for stopping their work and escaping from a dangerous, health threatening situation.  In addition, the Act does not stipulate the necessary conditions for resuming work.  The ILO Recommendations No. 171 and 164, among others, stipulate the active participation of workers' representatives in evaluating occupational safety and health safeguards at the workplace.  Article 19 of the Occupational Safety and Health Act of South Korea includes a provision to form committees for occupational safety and health at the workplace.  However, according to a survey entitled, "Analysis of Collective Agreements," conducted by the Korea Trade Union Congress (Chonnohyup), only 78 of the 217 required enterprises (36%) have such a committee.  Of these 78 established committees, 21 exist more as broad labour management councils instead of working specifically to improve safety conditions.  In all, workers' participation in safety and health matters is quite limited.

2) Employment Insurance System

Low Level of Unemployment Allowance

The Employment Insurance was initiated by the government on July 1, 1995.  This insurance is divided into Unemployment Benefits, Employment Security, and Vocational Training.  Under the unemployment benefit system, an unemployed person can receive about 50 per cent of his or her normal wages after a fourteen-day waiting period for a period of 30 to 210 days depending on the length of contribution.  These regulations fall below the ILO standards which state that 50 per cent of the total wages be paid to the unemployed after a seven day waiting period for a period longer than 182 days.

Moreover, the unemployment benefit does not amount to providing the worker the means to support his or her family.  For example, when a male worker with a wife and two children loses his job, he receives only 60 percent of the minimum living costs as the unemployment benefit.  Thus, it is necessary to adjust the method of computation so that the level of the unemployment benefits reaches the minimum living costs.

[Table]  Comparison of estimated unemployment benefit and minimum living cost

( Unit: Thousand Won )

	1990	1991	1992	1993
average monthly total wage	642.3	754.6	869.3	978.0
average monthly normal wage*	513.8	600.0	682.2	762.3
estimated unemployment benefit(A)*	256.9	300.0	341.1	381.2
minimum living cost for four-person family in large city (B)**	452.5	492.2	547.6	594.7
A/B	56.8%	61.0%	62.3%	64.1%

* Normal wage is calculated as the sum of regular and overtime payment.

** estimates based on 1988 minimum living costs

Source : Yearbook of Labor Statistics, Ministry of Labour, 1994; A Research of the Reform of Livelihood Assistance System, Korean Institute for Health and Social Affairs, 1990 (in Korean).

In general, when the unemployment benefits are too low, it not only causes various difficulties in livelihood, but also obstructs effective job seeking activities.  In other words, the unemployed can be pressed to seek jobs inappropriate for their skills and experiences due to the financial difficulties.  This leads to inefficiency in the nationwide labour market which is dictated by supply and demand.  Therefore, unemployment benefits should be high enough so that a worker can seek a new job in a stable manner and with opportunities to develop his or her abilities.  The level of benefits in South Korea is very low and unfavorable for workers in comparison with the ILO standards and the practices in major countries that have unemployment insurance systems.

Restrictions on Selecting Recipients

The scope of recipients for unemployment benefits, as in the government's present plan, is limited to employees in companies with 30 or more full-time employees, thus excluding the sector in higher need - workers in smaller enterprises.  In South Korea, the number of enterprises with 30 or more full-time employees is only 1.8 per cent of all enterprises, while their workforce comprises only 49.9 per cent of the total workforce (refer to the table below).  With such a limited scope, the unemployment benefit system cannot prove its value.  It is important to note that expanding the scope of statutory recipients for employment insurance to enterprises with 5 or more employees would bring it in line with other insurance systems, such as the Medical Insurance, Industrial Accident Insurance, and the National Pension System.

[Table]  Number of enterprises and workforce by size of enterprise

(in 1993, accumulated ratio)

( Unit : Thousand, % )

employment size	number of enterprises	number of employees
total	2,118 (100.0)	7,892 (100.0)
above 5	154 (7.3)	5,204 (65.9)
above 30	38 (1.8)	3,940 (49.9)
above 70	14 (0.66)	3,218 (40.8)
above 150	7 (0.3)	2,252 (28.5)

Source : Survey Report of Labour Practice in Enterprises, Ministry of Labour, 1993; Survey Report of All Enterprises, Ministry of Statistics, 1993.  Data on enterprises above 70 employees come from internal resources of the Ministry of Labour.

Moreover, it is difficult to understand the government's criterion for recipients since 57.7 per cent of overall unemployment occurs in companies with fewer than 30 employees.

[Table]  Size of unemployment by size of enterprise

employment size	1-29	30-99	100-299	above 300
unemployment rate	57.7%	16.0%	9.8%	16.5%

Source: reformulated from Employment Report of Urban Families, Research and Planning Group for Employment Insurance, 1992.

In addition, if other purposes of the employment insurance system are to gather employment-related information and to facilitate the effective flow of supply and demand of the labour market, it is not appropriate to reduce its scope of application to enterprises with 70 or more employees.  In doing so, as is planned, only 40.8 per cent of the total workforce and 0.66 per cent of the total number of enterprises will be eligible.

Low State Liability

The biggest danger in administering employment insurance is the possibility of a rapid increase in the unemployment rate, which would exhaust the financial capability of the insurance fund.  To address this possibility, a legal provision that keeps the insurance deficit preserved by the government's general accounting is needed.  This serves to stabilize the management of the insurance in accordance with the social responsibility of unemployment.

4. Employment Situation

The Korean labour market is a two-tiered structure, centering around highly educated men in the white collar sectors and low educated women in light industries. The unemployment rate in highly educated people and among the young people is increasing while the small and medium sized industries are facing a manpower shortage. The economic recession that hit the country in the past few years has led to the increase in unemployment. The outflow of the labour force into the abnormally expanded service industries and the general trend of avoiding the so called three "D" jobs have led to a shortage of manpower in small and medium sized industries. These small and medium sized industries have resorted to employing cheap foreign labour, either illegal foreign workers or those workers who have entered Korea through the technical trainee system sponsored by the Korean Federation of Small and Medium sized Businesses. The number of foreign migrant workers is estimated to be around 150,000 and the issue of foreign migrant workers has become a serious social phenomenon and has to severe human rights violations of the workers.

1) Employment Status

Government statistics show that the annual increase in the rate of employment from 1992 to 1996 will be maintained at around 2.2% and that the rate of unemployment will be maintained below 2%. However, government statistics are often misleading as every kind of employment even part-time employment for an hour a week is also included. Actual employment rate is not as high or bright.

The employment according to industries show a high concentration in the service industry with 61% followed by 24.1% in mining and manufacturing industry, 14.8% in agriculture, forestry and fishing industry. The primary industries of agriculture, forestry, fishing, mining and manufacturing are dwindling, while the service industry is increasing.

[Table 1] Trends in Labour Force Participation (thousand person, %)

	1991	1992	1993	1993			1994
				2/4	3/4	4/4	1/4	2/4
Economically active population Men Women Participation Rate Employed Unemployed Unemployment rate	19,048 60.6 18,612 436 2.3	19,426 (2.0) 11,627 7,799 60.9 18,961 465 2.4	19,803 (1.9) 11,890 7,913 61.1 19,253 550 2.8	20,094 (1.4) 11,964 8,130 62.2 19,529 564 2.8	20,204 (2.2) 12,055 8,149 62.2 19,685 518 2.6	20,058 (3.0) 12,014 8,044 61.5 19,538 520 2.6	19,665 (4.3) 11,925 7,741 60.1 19,066 571 3.0	20,573 (2.4) 12,252 8,322 62.6 20,082 491 2.4
Economic Growth	9.1	5.0	5.6	4.8	6.8	6.4	8.8	8.1

( ) is the difference rate over the same period of previous year

(Source : Korean Statistics Monthly, Office of Statistics)

[Table 2] Trends of Employment According to Industry (unit: thousand,%)

	1991	1992	1993	1993			1994
				2/4	3/4	4/4	1/4	2/4
Whole Industry Agriculture, Forestry, Fishing Mining, Manufacturing (Manufacturing) Service industry	18,612 (6.2) 3,064 (-5.7) 5,061 (1.6) 4,936 (1.8) 10,487 (6.6)	18,961 (1.9) 2,991 (-2.4) 4,891 (-3.4) 4,828 (-3.3) 11,079 (5.6)	19,253 (1.5) 2,828 (-5.4) 4,704 (-3.8) 4,652 (-3.6) 11,721 (5.8)	19,529 (0.7) 3,121 (-6.9) 4,724 (-4.4) 4,672 (-4.3) 11,684 (5.3)	19,685 (1.9) 3,092 (-6.7) 4,691 (-2.7) 4,640 (-2.6) 11,903 (6.4)	19,538 (2.7) 2,786 (-5.9) 4,708 (-1.9) 4,663 (-1.6) 12,045 (6.8)	19,066 (4.4) 2,265 (-2.1) 4,694 (0.0) 4,653 (0.5) 12,107 (7.6)	20,082 (2.8) 2,932 (-6.1) 4,755 (0.7) 4,714 (0.9) 12,395 (6.1)

( ) is difference rate over the same period of previous year

(Source : Korean Statistics Monthly, Office of Statistics)

[Table 3] Composition of Employment Status in the Non-Agricultural Sectors

(unit: thousand,%)

	1992	1993	1993			1994
			2/4	3/4	4/4	1/4	2/4
Wage Earners Full Time Employment Daily Employment Non-wage Employment	11,014 (1.9) 9,413 (2.9) 1,601 (-3.6) 4,679 (4.6)	11,289 (2.5) 9,688 (2.9) 1,601 (0.0) 4,948 (5.7)	11,308 (1.7) 9,666 (2.3) 1,642 (-1.8) 4,940 (5.3)	11,459 (3.4) 9,782 (3.6) 1,677 (2.4) 5,024 (6.4)	11,540 (4.4) 9,865 (4.4) 1,675 (4.4) 5,033 (5.1)	11,524 (6.2) 9,995 (5.9) 1,529 (8.4) 4,978 (3.9)	11,908 (5.3) 10,201 (5.5) 1,707 (4.0) 5,092 (3.1)

( ) is difference rate over the same period of previous year

(Source : Korean Statistics Monthly, Office of Statistics)

According to the employment trends,  there has been a general increase in the employment rate in conjunction with economic recovery. However, when  broken down according to gender, the rate of employment of female workers has decreased due to industrial restructuring of the manufacturing sector and the relocation of electronics, textile and footwear industries (see Table 4). Retrenchment has also continued throughout the whole industrial sector (except for the agricultural sector) especially in large companies and this is mainly due to economic recession and the increasing automation as well as the rationalization of the industry (see Table 5).

[Table 4]  Full-time Employment According to Job Category and Gender in the Manufacturing Industry

(Unit: thousand, %)

	1992	1993	1993			1994
			2/4	3/4	4/4	1/4	2/4
Manual workers Male Female Clerical and Technical Workers Male Female	1,731 (-7.4) 1,032 (-3.6) 699 (-12.4) 950 (4.4) 716 (3.9) 234 (6.1)	1,520 (-12.2) 937 (-9.2) 583 (-16.6) 1,043 (9.7) 772 (7.8) 271 (15.6)	1,509 (-14.6) 927 (-11.7) 582 (-18.7) 1,047 (12.9) 774 (10.1) 273 (21.7)	1,506 (-11.9) 935 (-8.4) 571 (-17.1) 1,045 (8.5) 775 (7.8) 270 (13.1)	1,502 (-7.9) 935 (-5.1) 557 (-12.2) 1,049 (6.8) 776 (5.1) 273 (7.8)	1,507 (-3.5) 940 (-0.9) 567 (-7.6) 1,063 (3.3) 787 (3.2) 276 (3.5)	1,491 (-1.2) 936 (1.0) 555 (-4.7) 1,067 (1.9) 791 (2.1) 277 (1.5)

( ) is the difference rate for the same period of previous year.

(Source: Monthly Survey Report on Labour Statistics, Ministry of Labour)

[Table 5]  Full-time Employment in Large Companies with more than 500 persons

(unit: thousand, %)

	1992	1993				1994
		1/4	2/4	3/4	4/4	1/4	2/4
Total	4,927 (3.0)	4,930 (-0.9)	4,906 (-1.7)	4,882 (-1.9)	4,882 (-1.2)	4,901 (-0.4)	4,911 (0.1)
More than 500	1,327 (-0.9)	1,239 (-9.5)	1,205 (-10.8)	1,202 (-8.5)	1,205 (-5.4)	1,125 (-1.9)	1,212 (0.6)

( ) is the difference rate for the same period of  previous year

(Source: Monthly Survey Report on Labour Statistics, Ministry of Labour)

2) Status of Unemployment

With the economic recovery, the rate of unemployment has dropped but the employment situation still remains very unstable. A characteristic of the situation is the increasing unemployment rate of young workers between 15 and 24 years of age (see Table 2). College graduates, especially the social science majors, have difficulty in finding jobs. The situation is worse for women and people with less than a college education. Most young people tend to avoid small and medium sized companies due to the relatively poor working conditions.

[Table 1] Unemployment by Age (%)

	1991	1992	1993	1994 (1/4)	1994 (2/4)
Total 15-19 (Age) 20-24 25-54 55 and Older	2.3 9.3 6.9 1.6 0.5	2.4 10.2 7.0 1.7 0.5	2.8 11.1 8.6 2.0 0.5	3.0 11.6 9.0 2.2 0.7	2.4 9.2 7.0 1.9 0.5

(Source : Korean Statistics Monthly, Office of Statistics)

[Table 2] Unemployment According to the Level of Education  (%)

	1989	1990	1991	1992	1993
Total less than middle school education High school education Above college education	2.6 1.3 3.5 4.8	2.4 1.1 3.4 4.4	2.3 1.1 3.2 3.6	2.4 1.1 3.3 3.4	2.8 1.4 3.6 4.0

(Source : Korean Statistics Monthly, Office of Statistics)

3) Labour Shortage in Small and Medium Sized Companies and the Problems of Foreign Workers

Labour shortage in small and medium sized companies has exacerbated since 1990 due to economic recession and increasing factory closures. With the economic recovery in 1994, this labour shortage has further exacerbated. Unemployment has been increasing from the successive factory closures and has influenced labour shortages in other factories. The government and employers stipulate that labour shortage in small and medium sized companies is due to the avoidance of hard work by workers in the labour-intensive manufacturing sector. However, the real reason behind this phenomena lie with low wages and bad working conditions which make workers to avoid manufacturing sector. This trend is growing rapidly among the younger generation between the ages of 15 and 24. No one wants to be employed in low paid, unsatisfactory monotonous work with long working hours.

With the worsening of labour shortage, increasing numbers of foreign workers are coming into the Korean labour market. At present, foreign workers are estimated to be around 150,000. The Korean Federation of Small and Medium Sized Businesses is proposing that the government import about 60,000 more foreign workers as an alternative to labour shortage and for the cheaper labour costs involved. The government as an alternative, has implemented the technical trainee system but this has only led to an increase influx of foreign migrant workers who are provided with almost no protection from human rights violations and poor working conditions.

The issue of foreign migrant workers is becoming a social problem and many civilian groups, religious, and trade unions have taken up campaigns to increase and protect the welfare and rights of the workers. It has also been pointed out that even though the influx of foreign workers may help solve the labour shortage in the short run, in the long run, it will hurt the Korean industry as structural changes in terms of higher pay and improved working conditions would be delayed and this would end in hurting the workers in small and medium sized companies.

4) The New Employment System

Aside from labour shortage in small and medium sized companies, another problem in Korea lies with the new employment system recently introduced especially in the office and management sector and large  companies have undertaken labour-saving automation and cuts in operation. Employers are introducing performance-based personnel policies and wage systems, for the maximum utilization of regular workers while trying to maintain the number of regular labour force to a minimum. Accordingly, employers are diversifying employment patterns. For example, a small number of regular workers and a large number of irregular workers are employed to minimize labour costs and to adjust quickly to the shifting market situation. This employment system is being extended to public service sectors and is supported by government policies.

5) Increasing Unemployment of Young People

Unemployment of young workers aged between 15 to 29 is growing rapidly. Young worker unemployment has been increasing since 1990 despite the economic recovery in 1994 (see Tables 1 and 2).

Young worker unemployment falls into two categories. One category encompasses women workers who were once employed in labour-intensive light industries such as textile and garment industries, electronics, footwear and leather industries but who have lost their jobs due to company bankruptcy, overseas relocation or  industrial restructuring which have continued from the late 1980s. Women are the victims of industrial restructuring which has been promoted under the pretext of overcoming economic instability but which has been undertaken without any consideration of alternative employment plan for the women workers who would loose their jobs due to the implementation of the policy. Similar trends in unemployment was still going on even in the middle of 1994 when unemployment rate was record low 2.0%.

The other category include the increasing unemployment rate of women and college graduates with social science qualifications. The key reason for increase of unemployment in the highly educated is linked with the problems in the education system. There are too many college graduates compared to the number of white collar jobs available. An increasing trend for college graduates is to reenter a two-year vocational college in order to get a job.

6) Expansion of Irregular Employment

Irregular employment as a type of the unstable employment in the form of temporary workers, part-timers, dispatched workers, etc, offers no job security and little legal protection for workers' rights. No trade union activity or other forms of collective expression is possible. This kind of irregular employment which had only lasted in the manufacturing sectors in the past but has now been extended to non-manufacturing sectors as well to reduce labour costs. The government promotes this trend with its recent enactment of the Labour Dispatch Act.

7) Unstable Employment of Women Workers

Korean women workers suffer from severe discrimination in the workplace. Women workers are still considered as marginal workers and are not offered equal opportunities in contrast to the men. Women face a wide range of discrimination in the ares of recruitment and employment, wages, retirement age, promotion, job placement and assignments, education and training. A survey undertaken in December 1993 among 1,415 companies with more than 300 employees, show that 37.9% (537 companies) violated the Equal Employment Act. In the ares of discrimination, wage discrimination was most common with 21.8% (309 companies), lack of daycare facilities at 15.5% (220 companies), discriminatory practices in recruitment and employment at 9.9% (140 companies), discrimination in education, assignment and promotion at 8.4% (119 companies), and discrimination in terms of retirement age and dismissals at 2% (28 companies). Wage discrimination showing the most typical type of gender discrimination show the reality that the principle of equal pay for equal work is not applied.

The rate of unemployment of women workers has grown greatly amidst bankruptcy, suspension or cessation of business, and industrial restructuring of labour intensive industries. The number of regular women workers has continued to decrease since 1989 when suspension or cessation of business occurred successively in the process of full scale industrial restructuring (see table 4).

The rate of underemployment of women workers has also increased. According to the  Economic Planning Board, 13.0% of women workers were employed as part-timers in 1989, showing the unstability of women workers. Recently, there has been a rapid increase of women employment in clerical, sales and service sectors. In 1992, 35.5% of women workers were employed in the manufacturing sector, 23.4% in the clerical sector, 17.6% in the service sector, 12.8% in professional work, and 10.2% in the retail sales sector. It can be seen that women occupy lower status jobs and the figures do not present a true picture of women's employment as most of the employed are only in part-time or temporary basis. For example, the financial sector abolished the female clerk system, apparently to abide by the Equal Employment Act, and instead, employed female part-timers. Women with higher education usually faced greater difficulties in gaining employment. As of 1993, the employment rate of female college graduates was only 39.4%. married women with children are usually hired on a temporary basis and are relatively concentrated in retail sales and the service sectors. Childcare facilities and maternity laws have not been properly implemented in Korea.

On the rate of employment according to age, statistics in 1992 show that 17.4% of the women aged 15 to 19 are economically active, 65.4%  between the ages of 20 to 24, 44.3% between the ages of 25 to 29, 57.8% between the ages of 30 to 34, 60.7% between 40 to 45, and 35.5% of women aged 55 and over. The economic participation rate of women is highest at the age of 25. But a sharp decrease in seen in the 25 to 29 age group when women leave their jobs upon marriage and pregnancy. Economic participation picks up in the age group over 30.

The rate of employment of women workers is highest (69%) in enterprises hiring four or fewer people while in large enterprises with more than 300 people, the rate of women workers total a mere 3.3%. As women are employed in small enterprises, the status of employment is insecure and as such, women are not protected under the Labour Standards Act. Moreover, since 77.5% of all married women are employed in workplaces with less than five employees, the Nursery Law for Babies and Infants which mandates workplace daycare facilities at enterprises with 500 or more women workers, is not applicable to them.

5. List of Recommendations Issued by International Human Rights Bodies Concerning Workers' Rights in South Korea and other references

International Labour Organisation, 286th Report of the Committee on Freedom of Association, h Case No. 1629: Complaints Against the Government of Korea - Presented by the Korea Trade Union Congress (KTUC), the International Federation of Building and Woodworkers (IFBWW), the International Confedration of Organisations of the Teaching Profession (WCTOP), the International Federation of Free Teachers' Unions (IFFTU), the Korean Teachers' and Educational Workers' Unions (Chunkyojo) and the International Federation of Journalists (IFJ) : GB/255/5/11

International Labour Organisation, 291st Report of the Committee on Freedom of Association, h Case No. 1629: Complaints Against the Government of Korea - Presented by the Korea Trade Union Congress (KTUC), the International Federation of Building and Woodworkers (IFBWW), the International Confedration of Organisations of the Teaching Profession (WCTOP), the International Federation of Free Teachers' Unions (IFFTU), the Korean Teachers' and Educational Workers' Unions (Chunkyojo) and the International Federation of Journalists (IFJ) : GB/258/4/6

International Labour Organisation, 294th Report of the Committee on Freedom of Association, h Case No. 1629: Complaints Against the Government of Korea - Presented by the Korea Trade Union Congress (KTUC), the International Federation of Building and Woodworkers (IFBWW), the International Confedration of Organisations of the Teaching Profession (WCTOP), the International Federation of Free Teachers' Unions (IFFTU), the Korean Teachers' and Educational Workers' Unions (Chunkyojo) and the International Federation of Journalists (IFJ) : GB/260/5/4

United Nations Committee on Economic, Social and Cultural Rights: Consideration of Reports Submitted by States parties under Articles 16 and 17 of the Covenant - Concluding Observations of the Committee on Economic, Social and Cultural Rights/Republic of Korea : E/C.12/1995/3, 19 May 1995

A Summary of NGOs' Counter Report to the UN Committee on Economic, Social and Cultural Rights

on the Initial Report Submitted by the Republic of Korea Under Articles 16 and 17 of the International Covenant on Economic, Social and Cultural Rights (the Final Report Following the NGO's Initial Report Submitted to the Working Group in June 1994), April 1995 - Presented by KCTU (Korea Council of Trade Unions), MINBYUN (Lawyers for a Democratic Society), PSPD (People's Solidarity for Participatory Democracy), et al.

People's Solidarity for Participatory Democracy (PSPD) is a citizens' organization dedicated to the promotion of participatory democracy and human rights. As a non-partisan and non-profit organization, PSPD works for the establishment of a true civil and democratic society in Korea. PSPD also works to check the abuses and excesses of the government and aims to incorporate the voices of the people in the decision-making process and in government policies.

Contact Person: Ms Jennifer Chang (Coordinator, International Solidarity Committee)

Rm 401, Kiwon B/D. 404 Hangang-ro 2 ka

Yongsan-ku, Seoul 140-012, Korea

Tel: 82 2 796 8364  Fax: 82 2 793 4745 Email:pspd@soback.kornet.nm.kr

The Korea Confederation of Trade Unions (KCTU), the national center for independent and democratic trade unions, was formed in November 1995. The formation of the KCTU was a victory for democratic trade unionism as the inaugural of the KCTU came after many years of struggle and sacrifice. KCTU works for the protection and implementation of basic labour rights, better working conditions and social security for the workers. KCTU membership comprises of 734 industrial unions, 108 regional unions and 20 "group unions" (council of unions in business conglomerates), with a total membership of 418,154.

Contact Person: Mr Young-moh Yoon (Director, International Department)

KCTU head office: 4th fl, 12-1 Samsun-dong 1 ga, Sungbuk-gu, Seoul 136-041 Korea

Tel: 82 2 765 2010  Fax: 82 2 765 2011    E-mail:KCTU@chollian.dacom.co.kr