Changing Employment Relations in the Era of Financial Crisis and Organizational Restructuring

After almost 30 years of rapid economic progress, the Korean economy encountered an unprecedented economic emergency in the late 1990s. For most Koreans, it has been the most formidable crisis since the Korean War in 1953. It has exerted a significant, long-lasting impact on the overall economy, the labour market, employment practices, the labour movement and the interactions between the three employment relations (ER) actors. On the other hand, it has also provided an opportunity for government officials, labour and employers to rethink their traditional policies and to formulate new strategies in the era of organizational restructuring. This chapter begins by discussing the background to the 1997-1998 financial crisis.