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South Korea – Top firms increasing their use of contract workers

16 April 2014

The number of contract workers hired at South Korea's top 20 companies increased sharply last year, while the number of regular employees remained largely unchanged, according to a report in english.yonhapnews.co.kr

According to corporate reports released at general shareholders’ meetings last month, the largest companies had 12,585 contract workers as of late 2013, up by +15.2% from the 10,924 a year earlier. No specific details were provided as to the types of contract the so-called ‘non-regular’ workers were on.  

By comparison, the number of regular workers on these companies' payroll increased by only +3% throughout last year to 440,524 from 427,651 in 2012. 

Affiliates of Hyundai Motor Group had the largest increase in non-regular workers, which the companies explained as a result of having replaced injured workers in assembly lines with contract workers and hiring back retirees on one-year contracts. 

Hyundai Motor Co. had 3,238 contract workers, up by +87.5% from 1,727 the year before, with Kia Motors Corp. having a total of 120 contract employees, compared with 23 in the previous year.  Hyundai Mobis, the country's biggest auto parts manufacturer, reported 200 contract workers in 2013, up from 103 in the previous year. 

On the other hand, companies such as Samsung C&T Corp., Korea Gas Corp. (KOGAS) and SK Telecom reported solid workforce of regular workers. Samsung C&T, a construction and trading company, said its number of regular workers increased by +12.2% year-on-year in 2013. Numbers for KOGAS and SK Telecom rose by +7% and +6%, respectively.