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Briefly sidelined following the Asian financial crisis in 1997, South Korea has regained its economic prominence. Growth rates for 2002 are projected to reach 4.8 percent, rising to 6 percent in 2003.

This revitalized economic environment is the setting for the emergence of several work-related trends that should be of interest to global HR professionals, including:

1. introduction of the five-day workweek
2. lower unemployment rates
3. greater demand for English language skills
4. increased opportunities for women
5. a shift in the concept of lifetime employment

Five-day workweek

According to the International Labor Organization (ILO), South Korea is one of the nations with the longest work hours in the world. Data from the National Statistical Office shows Koreas manufacturing industry employees average 49.3 hours worked per week, while those of Japan, the United States, and Australia averaged 43.7, 41.6, and 38.9 hours respectively.

Traditionally, most companies in Korea maintain a five- or six-day workweek. In the past year, the introduction of a five-day workweek as a national labor standard became a hotly debated topic. Many small and medium sized firms believe that a five-day workweek will cause increased wages and a decline in competitiveness. However, others argue that the introduction of a five-day workweek into a labor-standard is long overdue.

Although a bill has not been passed to legally establish the five-day workweek as a standard, it is believed that it is only a matter of time before legislation is passed due to the current momentum. Currently, five-day workweeks are being enforced in foreign companies as well as the financial sector; soon, other industries will begin to follow suit.

Implementation is not without controversy, however. The Korea Employers Federation, the Federation of Korean Industries, and other economic organizations believed the decision in May by 26 financial sector representatives to shift to a five-day workweek beginning in July was hastily made, without addressing the full consequences of the reduced work hours.

The institution of the five-day workweek will greatly affect the lifestyle of wage earners in Korea. With shorter workweeks, Koreans will have more time to enjoy leisure activities and spend time with their families.

Samsung Tesco, the countrys third-largest discount store operator, recently adopted the five-day workweek. Their employee, Choi Young-seok, says, Having a really relaxing weekend makes me feel more efficient and energetic when I get back to work.

Unemployment

The rate of unemployment in Korea has been falling steadily since the beginning of 2002. Currently, the unemployment rate is under 3 percent, the figure is thought to be the natural rate of unemployment in Korea.

The low unemployment rate suggests that a high level of economic dynamism is currently occurring in the country. However, there is still a large shortage of semi-skilled and low-skilled workers as a result of the recent government actions aimed at illegal foreign workers in Korea.

Illegal workers come to Korea mainly from China and the countries of Southeast Asia. Due to the distaste of young Koreans for dirty, dangerous or difficult work, there is a huge demand for semi-skilled or low-skilled labor. In order to keep pace with the demands for this type of labor, the government will probably need to establish a more efficient system for allowing foreign workers to obtain legal permits to work.

English language skills

The entry of more foreign companies into Korea, combined with the globalization, has increased Korean demand for English-speaking workers. U.S. companies have the largest foreign presence in Korea and companies are actively searching for candidates who are both fluent in written and spoken English to join their organizations.

Ideal candidates are often Koreans who have migrated to English-speaking countries such as the United States and England and who are willing to return to work in Korea. Some, who were raised in foreign countries, often grew up speaking both English and Korean. Many of these returnees are bilingual as well as bicultural, and they are familiar with both Western and Korean cultures.

Record numbers of young Koreans are currently learning the English language. The Ministry of Education and Human Resources Development has implemented a plan to employ a total of 4.150 native English speakers as teachers in elementary schools across Korea for a five-year period beginning in 2003.

Working knowledge of English is often the deciding factor for many companies when hiring local recruits. As Henning Schulte-Noelle, the chairman of Allianz, a leading global industrial risk insurer, has noted, Lack of English skills is a big drawback. Korea proved how quickly it was able to recover from economic shocks. Now it has to make improvements in some other areas.

As the number of English speakers increases, foreign companies will have greater choices when recruiting local candidates.

Women in the workforce

Due to its Confucian traditions, women have traditionally been treated as second-class citizens in Korea. Even today, there are many gender biases and women are still being compensated considerably less then their male counterparts. Many argue that the reasons for wage discrepancies between men and women are due to the uncertainties associated with hiring a female employee. Women often leave the workplace after having the children while men are more likely to remain in a companys employment for long periods of time.

However, there is a growing trend in Korea for previously male-dominated positions to be filled by women. Take diplomatic jobs. The Foreign Service in Korea has largely been the province of males due to the frequent travel Foreign Service officers must undertake. While it is acceptable for a diplomats wife to travel along with her husband, men are less likely to follow their wives due to their own jobs. However, last month, of the 35 people who passed the recruitment examination for the Foreign Service, 16 were women. Presently, there are about 80 women among 1,200 Korean diplomats. Although this number is expected to rise in the future, it will still be some time before women are equally represented in Foreign Service.

In the private sector, the number of female employees at LG Group has surged by over 40 percent in the past two years. Of the organizations 92,000 employees, 24,000, or 26 percent, are female. LG Group Chairman Koo Bon-Moo says that the company will continue to expand their recruitment of female employees.

The government is also implementing more conscious efforts to promote equality in the labor force. The Ministry of Gender Equality recently revised its policies in order to encourage greater participation by women. Some of its efforts include providing women greater access to training and employment opportunities, supporting women who return to work after pregnancy, and increasing the assistance offered to inexperienced female graduates who are seeking employment. A recent report by the Federation of Korean Industries says that the government, should focus on modifying the current education system, political environment and administrative practices and fostering more female talents to improve national competitiveness.

Lifetime employment

Koreans, like the Japanese, are also beginning to change their concepts of lifetime employment. Since the Asian financial crisis, employees are now more understanding that many companies often cannot support lifetime employment. In March 1999, the Korean government legalized layoffs, putting an end to this traditional concept.

Workers are also less likely to have feelings of guilt when they decide to leave a company to change jobs. Due to these changes, the labor force will continue to become more mobile and flexible. This will be beneficial to foreign companies skilled labor previously tied to lifetime employment positions will now be able to be more easily tapped.

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