Direct Request (CEACR) - adopted 2009, published 99th ILC session (2010)

Employment Policy Convention, 1964 (No. 122) - Republic of Korea (Ratification: 1992)

The Committee notes the information provided by the Government in its report received in September 2008, including the replies to the Committee’s previous direct request. The Committee asks the Government to supply additional information on the practical application of the Convention, in respect of the following matters.

1. Article 1 of the Convention. Overall labour market trends. The Committee notes that the rate of unemployment in 2007 was 3.2 per cent, which was 0.3 percentage points lower than the previous year. The annual increase of the employment rate was 2.6 percentage points in the 1990s, prior to the financial crisis; however, in the post-crisis period, the annual rate of employment decreased 1.9 percentage points. The Government indicated that the growth rate of the Korean economy decreased from 8.7 per cent in the 1980s, and 6.2 per cent in the 1990s, to 4.6 per cent in 2000s. The Government also indicates that such statistics serve to confirm the connection between economic growth and employment creation. Since the 1990s, employment in the manufacturing sector has decreased, and employment in the service sector has increased. The Government states that, despite the fact that the 1990s financial crisis made labour market conditions turn for the worse, the average annual growth rate of the service sector was 4.4 per cent. The Committee asks the Government to continue to supply related statistics on labour market trends and requests further information on the measures taken to promote full employment within a framework of coordinated economic and social policy.

2. Youth employment promotion. According to the Ministry of Labour, the youth employment rate has fallen from 45.1 per cent in 2004 to 42.6 per cent in 2007. The Committee notes that, in 2007, the youth unemployment rate remained more than twice that of the unemployment rate for the entire active population, and the number of young persons having difficulties in finding an employment amounted to 1 million. The Committee also notes that Government support to programmes aimed at improving access to youth employment increased from 2,968 billion won, providing assistance to 164,000 young persons in 2003, to 8,925 billion won, providing access to 218,000 young persons in 2007. The Government also indicates that it provides youth employment promotion subsidies for SMEs, offers vocational career guidance and runs the Youth Employment Service Programme for young persons from disadvantaged groups. The Government intends to implement the 2009 major workplan for the Ministry of Labour, which makes provision for investment in programmes to promote youth employment and to resolve labour shortages in SMEs. Other measures include a youth scholarship system and the “New Start Project” for 10,000 disadvantaged youths. Such measures are aimed at assisting young persons who face difficulties in finding a first job and the long-term unemployed. The Committee invites the Government to provide information on the impact such measures have had on the participation of young persons in the labour market, and their ability to find lasting and productive employment.

3. Employment promotion of women. The Committee notes that the participation rate of women was 54.8 per cent in 2007. The Government indicates that support programmes were put in place to promote female employment, including through the provision of subsidies to employers to cover childcare leave benefits (500,000 won per month in 2007); the provision of assistance for the recruitment of a replacement worker in the event that female workers take childcare leave; the provision of loans (up to 500 million won) or free support for the establishment of childcare facilities at the workplace; and the provision of vocational training and assistance for unemployed women, who are heads of household to start up businesses. Furthermore, the Committee notes the programmes, including affirmative action measures, to expand female employment in government-funded institutions as well as government-affiliated organizations, and in companies with 1,000 or more employees. As at 2008, such measures also extend to workplaces with 500 or more employees. The Committee asks the Government to continue to supply information regarding the results of the programmes and measures implemented to increasing the participation of women in the labour market.

4. Employment promotion of older workers. The Committee notes the rate of employment of older workers (aged 55–64) was 60.6 per cent in 2007 representing an increase of 3.2 percentage points over the previous four years. The Government has been providing subsidies to employers who employ a large number of older workers or who re-employ retired persons and extend the retirement age. The Government implemented an older worker-friendly wage system through the “Compensation Allowance for Wage Peak System”. In addition, the Ministry of Labour has designated, and operates, 126 organizations as training institutions for short-term adjustment which provide skills development support for older workers. The Committee invites the Government to continue to provide more information in its next report on the effectiveness of the programmes implemented to assist older workers.

5. Migrant workers. The Committee notes the action taken by the Government to prevent unfair practices in recruiting foreign workers, including the introduction of procedures to prevent possible corruption by prescribing that private entities shall not intervene in placement of foreign workers. The Committee asks the Government to provide further information on measures in place aimed at supporting foreign workers and the protection of their rights. In this connection, the Committee draws the Government’s attention to the relevant provisions of Part X of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169).

6. Article 3. Participation of the social partners. The Committee takes note of the Government’s plan of 2008, which was aimed at enhancing regional labour–management cooperation and expanding the participation of social partners through the reorganization of the Regional Tripartite Consultative Body into the Regional Consultative Body. The Regional Consultative Body will be composed of representatives of social partners selected at the regional level, as well as representatives of civil society, including SMEs and precarious workers. The Committee requests information on the way in which the views of the social partners are taken into account in the formulation of employment policies in the Regional Consultative Body. The Committee also invites the Government to indicate the recommendations made by the social partners, as well as the consultations with representatives of other sectors of the economically active population such as those working in the rural sector and the informal economy, in relation to the formulation and implementation of employment measures.