Overview

During the past three decades since the first long-term economic development plan was launched in 1962, the Republic of Korea (ROK) has undergone rapid economic growth averaging an annual rate of more than 8 percent, almost twice as much as the world average during the same period.

The country was hard hit by the economic crisis in 1997. The crisis was exacerbated by the failure of the previous government to predict and take adequate action to prevent it in time and by the mismanagement and inadequate supervision of financial institutions subsequent to the 1994 foreign exchange market liberalization. The new government sought an IMF bail out program and successfully negotiated terms under which foreign exchange would be made available by international financial institutions and governments to the tune of 57 billion dollars to supplement Korean foreign exchange reserves. The government is currently in the process of structural adjustments in respect of domestic business corporations and monetary and financial institutions.

In 1998 GDP growth contracted by 6.7 percent. However, Korea emerged from the crisis with 10.7 percent GDP growth in 1999 and an estimated 8.8 percent in 2000. Slow US economic growth and the faltering of Japan's economic recovery will affect Korea's export volume in 2001 negatively.

The head of the Government is President Kim Dae-june of the Millennium Democratic Party (MDP). The next presidential election will take place at the end of 2002.

As of 23 August 2001.  The Korean Government redeemed all the amount of the loan.  It seems that Korea is now starting another step of development as a creditor nation with more than 100 billion dollars.

The Ministry of Labour (MOL) is the main government contact of the ILO. Relations of the two bodies have been strengthened, especially during the process of overcoming the economic crisis. Korea was a government member of the ILO Governing Body during 1996-1999. It was re-elected in 1999 for another three years.

The Korea Employers Federation (KEF), established in 1970, has financed ILO assistance to many employers' organizations in developing countries in the region. KEF is affiliated to the IOE and is the main employers' organization. It participates in the Business and Industry Advisory Committee of the OECD (OECD/BIAC) as an observer. Mr. Nam Hong Cho, Vice-President of KEF is a deputy member of the ILO Governing Body.

The Federation of Korean Trade Unions (FKTU), founded in 1946, was the only recognized workers' organization at the national level, until the Korean Confederation of Trade Unions (KCTU) was registered in November 1999. KCTU obtained official legal status 4 years after it was established in 1995. The legalization of KCTU was one of the most important improvements made in extending labour rights in Korea. Both FKTU and KCTU are affiliated to ICFTU.

Korea is one of the countries covered by a comparative study conducted by the ILO on unemployment insurance provisions in various countries with advanced social protection. The study serves as an input to study Korea's extension of employment insurance system to construction workers and to other ILO technical studies on unemployment insurance in the region.

During the recent mission by EASMAT in August 2000, an agreement has been reached with the Korean Labour Institute (KLI) to jointly organize a subregional meeting on social protection against unemployment in 2002. ILO also collaborates with Korea International Cooperation Agency (KOICA) in the field of training and skill recognition under the APSDEP regional project. For this year, workshops are planned for trade unions on ILS and Declaration, and enhancement of TU capacity to defend women workers' rights and achieving gender equity.

Korea finances an expert post attached to EASMAT. The current incumbent, Mr. Shim, ensures liaison between ILO Bangkok and the Korean Government and assists in the area of skills training for employment.

Korea has ratified 14 Conventions, including 4 core Conventions (C.100, C.111, C.138 and C.182).

When Korea joined ILO in 1991 and the OECD in 1996, it became necessary to improve basic labour rights, such as freedom of association and the right to collective bargaining. Following the extensive enactment and amendment of the labour-related laws in 1997, workers' basic rights were greatly improved when the Tripartite Commission reached an agreement on how to implement reforms for major and controversial issues. The new labour law places emphasis on strengthening the freedom and association and the right of collective bargaining. Recently, there has been active discussion throughout all sectors of society to solve core labour issues for the advancement of labour-management relations. It is anticipated that these efforts will accelerate the improvement of workers' basic rights.