ABSTRACT
This chapter provides an overview of human resource management (HRM) in South Korea (henceforth Korea) and discusses recent HRM challenges in Korea. We discuss HRM systems in Korea including recruitment and retention, training and development, performance management, compensation and rewards, labor unions, and organizational culture. In line with socio-economic changes, Korean HRM has evolved in three phases: pre-1987, 1987 to 1997, and post-1997. In the first phase, Korean HRM was greatly influenced by Confucianism and Japanese HRM and emphasized seniority and lifetime employment. Globalization and political democratization within Korea from 1987, led to a competency-based HRM and the emergence of labor unions. The Asian financial crisis in 1997 triggered the adoption of a US-style performance-based HRM system and flexible labor markets. These days, socio-economic changes put pressure on HRM, and we discuss the challenges associated with an aging workforce and managing foreign and contingent workers. Based on an increased understanding of the unique Korean HRM system, we provide recommendations to foreign companies for how to manage their Korean workforce.
