South Korea is known as one of the hardest-working countries in the world. Following the Korean War (1950-1953), the nation underwent labor-intensive industrialization and achieved remarkable economic growth, establishing itself as one of the largest economies in the world. However, despite these achievements, South Korea faces significant challenges in its labor market. The disproportionately high share of temporary (non-regular) workers and the persistently low labor productivity highlight the pressing need for improvements in job quality and overall output. Moreover, the
is set to transform the country into a "super-aged society" by 2025, sparking concerns about future economic stability due to a shrinking labor force.
What are the working conditions like in South Korea?
Over the past few decades, South Korea has seen positive developments in working conditions and employee compensation. However, the labor market continues to grapple with fundamental structural issues. While the
overall working hours of South Korean employees have decreased over time, they still rank among the longest in the world. Despite these long hours, South Korea's
productivity level lags behind that of other developed economies. Furthermore, almost 40 percent of the workforce consists of
temporary (non-regular) workers, which is one of the highest proportions among OECD nations. Non-regular workers typically earn about half the wages of regular workers and often lack access to the social insurance system. Due to the limited job opportunities in the market, many young people are compelled to commence their careers in non-regular positions, which often come with substandard working conditions. Consequently, a significant number of these young individuals ultimately choose to resign and abandon their job search altogether.
South Korea’s shrinking workforce
Another pressing issue is South Korea's declining workforce. With the world's lowest
fertility rate, the country's population is rapidly aging. By 2050, the
population aged 65 years and older is projected to double, while the
working-age population is expected to decrease by almost half. Coupled with consistently falling labor productivity, the Bank of Korea has cautioned that South Korea may face negative economic growth by the 2040s. Despite the government's efforts to improve productivity and address labor market issues, it is uncertain how effective these measures will be in the long run.
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