Examples of Distortions

England: ”The economic miracle of Korea was based on cheap labor, and the cost of labor constituted only 8 percent of a company’s average cost. Many worker earn 80 pounds a month which is not even the minimum wage level.” (Secondary School Social Studies, Work, Employment and Development, Collins, 1994.)

France: “ Social cost for the miracle is very high. Labor conditions are very poor. While work-related injuries frequently occur, legal protection is inadequate. Wages are low and work hours are long.” (Secondary School Geography, Geographic, Nathan, 1995.)

Comment

The wages of Korean workers have greatly increased since the late ‘80s. In fact, wages have increased so much that they are higher than those in competitor nations such as Taiwan or Hong Kong, although they are not as high as in developed nations. Considering the fact that increase in wages have surpassed productivity and have thus become a cause of weakened profitability and a loss of international competitiveness, the statement that Korea is a country with cheap labor is not correct.

In Korea, the movement to improve labor conditions in the ‘60s and ‘70s reached a peak in the mid-‘80s. In 1987, there were a total of 3,749 labor disputes, 67.9 percent involving wages and 15 percent work conditions. At present the average monthly wages of a Korean worker has increased greatly and a 44-hour workweek is prescribed by the 1989 Labor Standards Act.

Polish sources state that the work environment for Korean workers is harsh and describes the Korean people as workaholics. That description might have applied in the ‘60s, but now both the law and Labor Unions limit the number of work hours a week.