ABSTRACT
This chapter discusses the development of the Korean economy, the characteristics of the Korean labour market and the basic features of the three main actors in employment relations (ER). After three decades of unprecedented economic growth, the Korean economy encountered a serious currency crisis in 1997. This crisis provided an opportunity for policymakers to rethink the Korean development model and to shift the focus from traditional manufacturing to highly value-added information technology and biotechnology industries. More importantly, the economic crisis not only altered employment practices, but also transformed the patterns of interactions among ER actors. In this sense, the 1997-1998 financial crisis was a turning point for the Korean economy and ER.
