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Korea – Government cracks down on temporary worker numbers

08 July 2014

Nearly 37% of positions at big companies are filled with non-permanent workers, the Labour Ministry reported in its first disclosure of employment conditions at companies with more than 300 people on the payroll, reports koreatimes.co.kr.

Non-permanent members consist of workers dispatched from manpower supply agencies, temporary workers, and people who work from home.

This is the first look into employment conditions at "big" companies, legally defined as a workplace with more than 300 workers. The disclosure will be conducted annually. Under a law enacted in December 2012, the Labour Ministry now requires nearly 3,000 big companies to report about their workforces.

The Ministry has moved forward with the policy in the belief that publicising employment conditions will put pressure on big companies to fill more positions with permanent workers. This is in line with President Park Geun-hye's campaign commitment to strengthen the country's job security.

In this vein, the annual disclosure is intended to encourage major companies to increase the number or portion of permanent workers, especially conglomerates that need to maintain favourable relations with the government. Hanwha Group permanently hired 2,043 of its temporary workers in January last year; a decision made after reportedly feeling pressured by its obligatory disclosure.

Some of the major companies using non-permanent workers includes:

Company Number of temporary workers Percentage of total workforce
Hyundai Heavy Industries 40,767 59.5%
Daewoo Shipbuilding and Marine Engineering 30,666 69.9%
Daewoo Engineering and Construction 26,618 51.3%
Samsung Electronics 26,604 21.5%
Samsung Heavy Industries 24,377 62.8%