36% of foreign firms consider Korean labor market rigid: survey

About one-third of foreign companies in Korea consider the local labor market as more rigid compared to their home countries, according to a survey released Friday.
36% of foreign firms consider Korean labor market rigid: survey

The building of Korea Enterprises Federation (KEF) is seen in this undated file photo. Courtesy of Korea Enterprises Federation

In the survey conducted by the Korea Enterprises Federation recently on 200 foreign companies in Korea with more than 100 employees, 36.5 percent responded "yes" when asked whether they perceive the Korean labor market as relatively more rigid.

The survey showed that 13.5 percent of foreign companies did not consider the local labor market as more rigid. About half of respondents said labor rules here were comparable with those back at home.

When asked of key risk factors in the local labor market, 34 percent cited a lack of flexibility in labor regulations, such as those involving layoffs and contract employments, followed by the stringent work hour management system and increased wages.

Also, 37 percent of the companies said the government's labor market reform measures would lead to a positive effect in terms of boosting employment, while 21 percent said it will likely affect negatively in terms of hiring expansions.

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(Source: Korea Times)