Direct Request (CEACR) - adopted 2007, published 97th ILC session (2008)

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

1. In reply to its 2005 direct request, the Committee notes the information contained in the Government’s report received in February 2007. The ILO Subregional Office in Bangkok has also brought to the Committee’s attention additional information regarding the application of the Convention.

2. Article 1 of the Convention. Overall labour market trends. The Government indicates in its report that the number of employed people has increased steadily in spite of worsening economic conditions. The number employed was 23,164,000, up by 1.4 per cent as compared to the same period in 2005. While this figure has fallen in the agriculture, fishery and manufacturing sectors, it has risen in business and other service sectors by 4.9 per cent. Even though the average annual unemployment rate remains 3.6 per cent, the employment rate was 63.7 per cent indicating a slight increase (0.1 per cent higher) than the previous year. The Committee would appreciate receiving in the Government’s next report relevant statistics on labour market trends and further information on the extent to which economic growth is leading to employment generation specifically in sectors that have been vulnerable to worsening economic conditions.

3. Employment support programmes for vulnerable groups. The Committee notes the information provided on measures to promote the employment of women including detailed information about the number of beneficiaries and amounts spent. It further notes the comprehensive package of active employment policies for young people during their transition from school to work (career guidance, employment services, direct employment, on-the-job training and temporary subsidies). Taking into account the situation of the vulnerable groups as summarized below, the Committee asks the Government to include in its next report an evaluation of the effectiveness of the programmes implemented and their impact, in terms of employment generation, on enabling women, young workers, older workers and workers with disabilities to find lasting and productive employment.

(a)   Employment promotion of women. The Government indicates that the labour force participation rate for women has increased from 48–49 per cent in 1995, to 50 per cent in August 2006, which is still below the OECD average of 60.4 per cent in 2005. Supporting programmes in place to promote female employment include subsidies to employers to cover childcare benefits and the cost of using replacement workers during childcare leave; the provision of maternity protection and loans for establishing childcare facilities in the workplace. Other programmes include affirmative action measures to expand female employment in government-funded institutions as well as government-affiliated companies and agencies with 1,000 or more workers. Such measures will extend to workplaces with 500 or more employees, starting from 2008. Furthermore, female re-employment is promoted through subsidies to ensure the continuous employment of female workers after childbirth. Other employment promotion measures targeting unemployed female household heads include employment training and support for starting small business ventures.

(b)   Youth employment promotion. The unemployment rate for youth aged 15–29 was 7.4 per cent in August 2006. According to the Government’s report, around 200,000 young people have benefited as a result of government support for jobs and training. Such measures consist of subsidies provided so that unemployed youth can develop vocational competencies and build careers through on-the-job experience. Furthermore, employers that hire a young person who has been unemployed for more than three months are eligible for government subsidies.

(c)   Employment promotion of the elderly. The economic activity participation rate for those aged 55–64 was 60.2 per cent, which is higher than the OECD average of 54.2 per cent. Government measures to achieve this result comprise of a range of subsidies. This includes compensation for wage cuts under certain conditions, and subsidies for employers that hire the aged as well as those that retain retirees after retirement age. Additionally, companies with more than 300 workers are required to employ a certain percentage of aged workers. Furthermore, employers that set the retirement age too low are required to review such polices with a view to extending the retirement age. Lastly, private job-placement agencies have been established to assist the aged.

(d)   Workers with disabilities. Employment trends reflect a steady increase in the employment rate for persons with disabilities: 0.43 per cent in 1991 to 1.55 per cent in 2005. The number of persons with disabilities employed by the private sector as well as the public sector was 61,862 at the end of 2005. Employment promotion activities include appointing such persons to teaching positions. Additionally, support measures have been provided for students with disabilities to become public servants through career guidance and preparatory classes. To increase the employment rate of persons with disabilities in the private sector, the Government has introduced a system of incentives and corresponding sanctions when companies fail to meet standard employment rates. In this respect, the Committee refers to its 2005 direct request on the application of Convention No. 159.

4. Migrant workers. The Government reports that in 2004 it introduced an Employment Permit System for migrant workers, which is being increasingly used to issue employment permits for foreign workers. Furthermore, the Migrant Workers’ Centre, also established in 2004, offers services to assist foreign workers adapt to life in the country as well as to protect their human rights. The Committee invites the Government to report in detail on the action taken within the framework of an active employment policy to prevent unfair practices in the recruitment of labour (see Part X of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169)). It also encourages the Government to inform both employers’ and workers’ organizations of its policies and labour standards to protect the rights of migrant workers.

5. Article 2, paragraph (a). General economic policies. In reply to the previous direct request, the Government indicates that it is encouraging the development of new technologies and programmes to support venture firms and reduce working hours as well as implementing macroeconomic policies to further job creation and that, on the whole, these measures are making an impact on the labour market. Studies that analyse the impact of such policies on employment will be undertaken starting from 2007. The Committee reiterates its interest in receiving information on the manner in which other macroeconomic policies, such as monetary and fiscal policies, operate within the “framework of a coordinated economic and social policy” in order to attain the objectives of the Convention.

6. Article 3. Participation of the social partners. The Committee notes the meetings held by the Employment Policy Council which actively works with social partners on the matters covered by the Convention. The report details the agenda and outcome of meetings held by the Employment Policy Council since 2001. The Committee invites the Government to provide further information in its next report on the recommendations made by the social partners as well as consultations with representatives of other sectors of the economically active population such as those working in the rural and informal economy in relation to the formulation and implementation of employment measures.