Human Resources Management in South Korea

Abstract

This chapter is concerned with human resource management (HRM) in South Korea, the third largest economy in Asia and the 13th largest economy in the world (the 11th largest just before the 1997 Asian Financial Crisis). It updates of our earlier piece with the inclusion of some changes that have emerged. Korea's economic background, rapid development and the particular structure and organisation of capital and links to the state are all important to HRM's operating context. This developmental, state-sponsored, export-orientated and labour-intensive model of industrialisation was reinforced by exhortations and motivations. Furthermore, HRM globalisation in Korean companies shifted its focus from 'hardware' to 'software'. At first, companies focused on systems and practices, especially a performance-based HRM system. This hardware aspect includes performance-based compensation, position-based job grades, standardisation of performance evaluation and compensation policies. Finally, as Korean firms continue to relocate production to other countries, such as China, South East Asia and further afield, global HRM is gaining significance.