Observation (CEACR) - adopted 2024, published 113rd ILC session (2025)

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

The Committee notes the observation of the Korea Enterprises Federation (KEF) submitted with the Government’s report on 1 September 2023 and the Government’s responses thereto, received in October 2023. The Committee also notes the Government’s response to the observations of the Korean Confederation of Trade Unions (KCTU), received on 20 September 2019. The Committee further notes the observations made by the Federation of Korean Trade Unions (FKTU) dated 8 September 2023. In this regard, the Committee notes that the FKTU reports that they sent their observations to the Government before 1 September 2023, but the latter has not submitted them together with its report for the period August 2020 to June 2023. The Committee observes that the FKTU has provided comments mostly related to working hours and components included in the minimum wage. The Committee also notes the Government’s response, received in October 2023, to the FKTU’s observations.

Articles 1 and 2 of the Convention. Employment policy and employment measures. Overall labour market trends. The Committee acknowledges the comprehensive data provided by the Government regarding employment and social policy, particularly the introduction of the Fifth Basic Plan for Employment Policy (Fifth BPEP) on 30 January 2023. This plan addresses significant labour market challenges, such as industrial and demographic shifts and job mismatches. The Government emphasizes its support for innovative growth and job creation in emerging industries, expansion of social service jobs, and labour market legislative reforms. The Fifth BPEP aims to establish an early detection system for employment crises and a proactive response system to job uncertainty and employment slowdowns. Additionally, the Government is working to resolve labour supply and demand mismatches through labour market measures, such as skill-level-based training and manpower supply, special management of job vacancies by industry and region, and enhanced employment services that match recruitment with job searches.

The Committee also notes the Government’s commitment to facilitating the entry of vulnerable groups into the labour market, particularly young people, women and older persons. The Government intends to establish an employment safety net that promotes labour market participation by supporting the working poor, strengthening activation into employment, and enhancing a dense employment safety net. Active labour market policies are classified into six categories: direct jobs, vocational training, employment services, employment subsidies, support for start-ups and supported rehabilitation. In this respect, the Committee notes the information provided by the Government related to the share of public expenditure of the Republic of Korea for active labour market policy measures which represent 0.70 per cent of its gross domestic product while the Organisation for Economic Co-operation and Development (OECD) average is 0.97 per cent. In this context, the Committee notes that the KEF in its observation states that the shift from a reactive and defensive labour market policy to a more proactive and pre-emptive one is desirable. However, as the allocation of budget to active labour market policies such as vocational training and employment services is still below the OECD average, more active budget allocation for active labour market policies is needed. The Government further states that it conducts annual evaluations of job programmes to enhance their efficiency, with 207 programmes evaluated by June 2022. The Committee notes the Government’s efforts to increase private sector jobs and boost the participation of vulnerable groups in the labour market, with specific employment rate targets for 2027. The overall employment rate for persons aged 15 to 64 increased from 61.3 per cent in December 2022 to 62.2 per cent in March 2023, while the overall unemployment rate slightly increased from 2.3 per cent in November 2022 to 2.9 per cent in March 2023. The Committee also notes the Government’s indication that the employment rate increase in March 2023 was primarily due to the employment of seniors and women, while employment of young persons and those in their 40s decreased.

The Committee requests the Government to provide with its next report detailed and updated information regarding the nature, scope and impact of active labour market measures implemented and any measures aimed at enhancing budget allocation and effectiveness of active labour market policies, including through increased credits allocated to vocational training and employment services, to promote full, productive, and freely chosen employment in the country. The Committee also requests the Government to continue to provide comprehensive updated information on overall labour market trends, including statistical data disaggregated by sex and age, relating to employment, unemployment and underemployment.

Measures addressing dualism in the labour market. The Government refers to the implementation of a set of measures aiming to reduce labour market dualism in the public and private sectors, and highlights that in the reporting period the public sector has taken the lead in promoting the policy of converting non-regular workers engaged in performing permanent and continuous work to regular employees. In this context, the Government indicates that as of December 2021, the conversion process for 197,866 non-regular workers reached 97.4 per cent of the target number of 203,199 (116.2 per cent). Regarding the employment types, the Government indicates that 74,903 fixed-term workers (100.3 per cent) and 123,773 temporary agency and contract workers (95.7 per cent) completed conversion. In addition, the Government indicates that among the 197,866 workers who completed the conversion process, 144,347 workers (73 per cent) were directly employed, 51,752 workers (26.2 per cent) were employed by subsidiaries, and 1,767 workers (0.9 per cent) were employed by a third sector (social enterprises, cooperatives and so forth). The Committee further notes the Government’s initiatives to mitigate labour market dualism in the private sector. These measures include: revising guidelines for fixed-term and in-house subcontracted workers to enhance employer compliance and working conditions; raising awareness and supporting companies in voluntarily improving employment structures through expert-led support groups; offering consultation services to address discrimination factors and improve conditions for non-regular workers; encouraging proactive employment structure improvements via labour inspections; providing financial and tax incentives for companies converting non-regular workers to regular employees; and implementing subsequent measures like increased labour inspections and strengthening the discrimination correction system. These efforts are supported by a significant budget increase and aim to create a more equitable labour market. As regards the number of recipients of financial support, the Committee observes a decrease from 4,323 in 2020 (4,065 in 2021) to 3,686 in 2022. Regarding the financial resources for tax credits, the Government indicates a slight increase in the amount from 28.3 billion South Korean won in 2019 and in 2020, to 28.9 billion won in 2021. In addition, the Committee notes the observation, expressed in OECD Economic Surveys: Korea 2024, and related to the increase in the amount of Government spending on small and medium-sized enterprise subsidies. In this regard, the report states that a total of 1,646 programmes were in place in 2023 to support small and medium-sized enterprises, 530 run by 18 ministries and central government agencies and 1,116 by the 17 regions. In addition, small and medium-sized enterprises also enjoy special treatment in public procurement, lower taxes and other benefits.

In view of the above, the Committee reiterates its request to the Government to pursue its efforts to reduce labour market dualism in both the public and private sectors with a view to creating full, productive, and lasting employment opportunities for both regular and non-regular workers, and to provide information about progress made in this respect. Furthermore, noting that the report did not provide information regarding the conversion process for 2022 and 2023, or information about the Government’s financial support for measures in the private sector for these years, the Committee asks the Government to supply this information, together with updated information concerning the next reporting period, with its next report.

Moreover, in its reply to its previous comments related to the status of the amendments to the Act on the Protection of Dispatched Workers, the Committee notes that the Government does not provide the information requested. Instead, the Government refers in its report to the Future Labour Market Research Committee (FLMRC), established by the Ministry of Employment and Labour (MOEL) and composed of employment and labour experts. The scope of competence of the FLMRC includes identification of challenges in the labour market and possible solutions for labour reform. The FLMRC recommended the improvement of the Act on the Protection of Temporary Agency Workers (December 2022). The Committee therefore reiterates once again its request to the Government to provide detailed up-to-date information on the status of the amendments to the Act on Protection of Dispatched Persons.

Job creation policy. The Committee notes the employment and insurance policy and measures taken during the COVID-19 pandemic described in detail in the ILO document Employment Insurance System of the Republic of Korea to cope with the COVID-19 crisis. The Committee notes the financial support provided through various funds. By 2021, the employment retention fund loan supported over 10,000 workplaces and 55,000 individuals with a total of 104,359 billion won, and by June 2022, the employment stability agreement subsidy assisted 658 workplaces with 31.616 billion won. Additionally, the Government doubled the loan limits for vocational training living expenses and reduced the self-payment rate. The tripartite agreement signed on 8 July 2020 aimed to enhance employment retention, expand social safety nets, and improve quarantine and medical infrastructure. A special committee within the Economic, Social and Labour Council was established to oversee the implementation of this agreement, which included increasing the employment retention subsidy by 90 per cent.

Observations by the KCTU and the FKTU on the components of the minimum wage and working hours. The Committee notes the observations made by the KCTU in 2019 and the FKTU in 2023 regarding the components of the minimum wage and long working hours. These trade unions raised concerns about the amendment to the Minimum Wage Act in January 2019, which included bonuses and cash benefits paid at least once a month in the minimum wage calculation. They argue that this expansion allows employers to manipulate the calculation to avoid violating the minimum wage requirements. Additionally, the trade unions have expressed that, contrary to the Government’s interpretation, real wages are declining in the actual labour market. The Committee also notes that the trade unions filed a complaint on this issue before the Constitutional Court. In response, the Government refers to the Constitutional Court’s decision on 17 December 2021, which upheld the reform of the components, stating that it did not violate the principles of due process, clarity and the ban on total authorization. Regarding long working hours, the trade unions are concerned that the original purpose of the 52-hour working week limit introduced in July 2018 has been undermined by “corporate-biased follow-up measures” in order to avoid paying additional allowances for extended working hours. The Government, however, emphasizes that exceptions to overtime limits are recognized only in five transportation and health industries, which are deemed necessary to maintain for public interest reasons. In view of the above, considering that employment policy provides the framework within which working time and minimum wages are regulated and interact to shape the labour market, the Committee requests the Government to indicate how the above measures have impacted the core objective of the Convention to promote full, productive and freely chosen employment.

Employment of older workers. The Committee acknowledges the Government’s detailed measures to promote productive employment opportunities for older workers. These measures include extending the retirement age, abolishing the retirement age, rehiring and providing subsidies to small and medium-sized enterprises for the continuous employment of senior citizens. The Government also established a research committee within the Economic, Social and Labour Council, which operated from September 2021 to February 2022, to address the aging society with labour, management and experts. This committee disseminated best practices and conducted awareness-raising campaigns for greater age diversity in the workplace. In terms of re-employment and job support, the Government offers employment services such as lifetime career planning for small and medium-sized enterprises, job changes, and re-employment support in cooperation with job centres for the middle-aged and with local governments. Since May 2020, re-employment support services are mandatory for employees who are obliged to leave enterprises with more than 1,000 employees. The Government also created tailored polytechnic courses for those in their 50s and 60s, providing high-skilled technical and functional job training with full support for related expenses. Financial support is available for small and medium-sized enterprises that employ people aged 60 and older, with up to 7.2 million won per worker for a maximum of two years if they continue to employ workers who have reached their retirement age. Additionally, the Government promotes employment by providing stepping-stone jobs for experienced professionals in their 50s and 60s to provide social services to local communities, and supports labour costs for small and medium-sized enterprises experiencing labour shortages. The Committee notes an overall increase in the number of employed persons in all age groups from 2018 to 2022, reflecting the effectiveness of these measures. The OECD Economic Surveys: Korea 2024 also highlights the need for the Republic of Korea to prepare for and adapt to the challenges of an aging population. The Committee requests the Government to continue to provide detailed information on the measures taken to promote productive employment opportunities for older workers and their outcomes. In particular, the Committee asks the Government to provide further details on measures aimed at developing ageing-responsive public employment services, implementing active labour market policies targeting older workers, and promoting lifelong learning and training. Additionally, the Committee requests the Government to indicate measures aimed at fostering age-diverse workplaces; ensuring health and safety at work for this category of the workforce; and incentivizing longer working lives to create an inclusive labour market that values the experience of older workers, ensuring they can continue to contribute meaningfully to the economy. Lastly, the Committee requests the Government to continue to provide statistical information on the employment rate, job placement results and income level of older workers.

Employment of women. The Committee observes the Government’s dedication to enhancing women’s participation in economic activities by fostering a non-discriminatory work environment and a supportive childcare system for work–family balance. The employment rate of women has shown a steady increase from 57.7 per cent in 2021 to 60 per cent in 2022. Additionally, the Government provides information on the childcare support system, which includes maternity leave of 90 days for pregnant employees and ten days of paid leave for male workers, with pay support for small and medium-sized enterprises. The Government also plans to increase the number of benefits as announced by the Presidential Committee on Aging Society and Population Policy. The Committee further notes that female employees who are pregnant or have children aged 8 or younger can take paid parental leave for up to one year. The parental leave benefits have been increased, and the MOEL introduced the “3+3 parental leave system” from January 2022 to promote a culture of parental care. This system allows both parents to take parental leave within the first 12 months of a child’s birth with increased benefits for the first three months. The Government also refers to the possibility for employees with children aged 8 or younger to reduce their working hours, with support for the ordinary wage. The Committee notes the Government’s plan to expand the reduced working hours system for childcare. Furthermore, the Government supports flexible working hours and locations, such as staggered hours, flexitime and remote work, and provides financial support for small and medium-sized enterprises to build infrastructure for work from home and for remote work. Lastly, the Government conducts various campaigns to improve public awareness about policy support for work-life balance. In addition, the Committee notes, from OECD Economic Surveys: Korea 2024, that childcare provision has significantly increased but that it does not fully meet the needs of working parents, partly reflecting scarcity of quality childcare and short opening hours. The OECD report also points out that despite improvements, Korean parents underutilize paid parental leave due to stringent eligibility criteria, low benefits and a fear of adverse career consequences reflecting the cost on employers. In view of the difference in the employment rates of women and men, the Committee requests the Government to continue to strengthen its efforts to increase women’s participation in the labour market, particularly in full, productive, and sustainable employment, and to provide updated comprehensive information on the nature and impact of measures taken. Referring to its comments under the Workers with Family Responsibilities Convention, 1981 (No. 156), the Committee encourages the Government to pursue its efforts to adopt social policy and implement measures for further promoting work–life balance.

Youth employment. The Committee notes the detailed information provided by the Government on new initiatives aimed at facilitating young people’s entry into the labour market. The Government emphasizes customized employment services through public–private partnerships and youth needs, offering various work experience opportunities. Notably, the number of participants in youth experience programmes increased from 10,000 in 2022 to 20,000 in 2023. Additionally, the Government expanded membership operations and financial support for companies’ voluntary participation in youth competency enhancement, with 74 companies receiving financial support in 2023 and the Government’s financial support increasing from 17 billion won in 2022 to 25.1 billion won in 2023. To expand work experience in the public sector, the MOEL provided opportunities for participation in the policy process through internship programmes in central administrative agencies. The number of interns in public institutions rose from 19,000 in 2022 to 21,000 in 2023, with 2,000 in central administrative agencies. The Government also implemented various measures, including specialized support for early intervention for young people in schools, diversified and customized job search motivation programmes, and increased support for youth job take-off incentives. Furthermore, the Government introduced training programmes tailored to industry needs and high-tech courses for youth, and promoted youth-friendly fair recruitment. Collaboration with the Korea Corporation Management Association led to the drafting and distribution of a guide for fair recruitment (Sympathy Recruitment Guidebook), and the proposed revision of the Fair Hiring Procedure Act to develop a new Act for fair recruitment, aimed at protecting young persons’ rights and establishing a fair recruitment system. The Committee also notes in this respect the OECD’s observation that addressing labour market dualism through employment protection streamlining and social insurance strengthening would help improve the financial position of youth (OECD Economic Surveys, Korea 2024). Taking into account the rate of youth unemployment, 5.4 per cent in 2023 according to data available to the ILO Statistics Department (ILOSTAT), the Committee requests the Government to provide updated information on the status of the revision of the Fair Hiring Procedure Act and its impact on employment. The Committee also requests the Government to continue to promote the long-term integration of young persons in the labour market, including qualified young persons and other categories of young people who encounter difficulties in finding employment. The Committee further requests the Government to continue to provide up-to-date information on the measures taken or envisaged in this regard, as well as any progress made or results achieved, disaggregated by sex and age.

Migrant workers. The Committee notes that the Government emphasizes its commitment to ensuring that migrant workers under the Employment Permit System (EPS) are treated fairly and have equal rights as workers who are nationals, under the country’s labour laws. To this end, the Government has provided guidance and conducted inspections of workplaces employing EPS workers, although the number of such inspections decreased slightly from 3,063 in 2019 to 3,021 in 2022. The Government has also strengthened labour management training for employers to protect the working conditions of EPS workers, including education on the Labour Standards Act and other relevant laws. Additionally, EPS workers with E-9 visas receive employment training before and after entry into the country about their legal rights and remedies in case of violations. The Government has provided 154 interpreters across 52 employment centres to assist with employment-related matters and complaints. Interpretation services have been extended to include “third-party phone call” services, engaging translators at foreign workforce consultation centres and foreign worker support centres nationwide. Complaint-related documents have been translated into 16 languages to ensure accessibility. Furthermore, the Government adopted guidelines in January 2021 to improve living conditions for EPS workers in agriculture and fisheries, prohibiting temporary building accommodation without a license or notification. Taking due note of this information, the Committee asks the Government to continue to report on this issue and refers to its2023 comments under the Discrimination (Employment and Occupation) Convention, 1958 (No. 111) where it requested the Government to continue providing information on: (i) measures taken to improve the protection of migrant workers against discriminatory treatment, their access to justice and to decent living conditions; (ii) statistics on the number of complaints filed and their outcome; and (iii) progress achieved through the implementation of the Guidelines on the Human Rights of Migrants, the fourth Basic Plan based on the Framework Act on Treatment of Foreigners Residing in the Republic of Korea or any other relevant policy document adopted in the meantime.

Article 3. Consultations with the social partners. The Committee notes the Government’s information regarding the Employment Policy Council and the Employment Policy Deliberative Council (EPDC), which are integral to shaping and implementing employment policies in the country. The EPDC, established under article 10 of the Framework Act on Employment Policy, comprises of 29 members, including representatives from government ministries, labour organizations and employer groups, ensuring a balanced approach to employment issues. The EPDC’s role includes deliberating on significant employment matters, providing recommendations, aligning local employment policies with national strategies, and evaluating the effectiveness of employment programmes. In 2022, the EPDC held six meetings, addressing various agenda items such as the employment impact assessment projects, the National Employment Support plan, labour welfare promotion, employment crisis region designations, and support for special employment industries. The Committee also notes the activities of the EPDC’s specialized committees, which focus on areas like regional employment, employment services, social enterprise development, affirmative action, employment promotion for persons with disabilities and construction worker employment improvement. These specialized committees consist of up to 20 members, including labour and management representatives. The Committee observes, however, that the Government does not provide information related to consultations with representatives of the persons affected by employment policy measures, including representatives of workers in non-standard forms of employment. The Committee therefore requests the Government to provide information on such consultations and to continue to provide detailed and updated information on consultations with the social partners on the matters covered by the Convention.