International | South Korea

Right before the Germany retreat, there was Wal-Mart's abysmal performance in and subsequent pullout from South Korea. Critics state that Wal-Mart's static and monolithic culture did not fit in well with what South Korean housewives were accustomed to. Beginning in 1996, Wal-Mart entered the country selling electronics and clothing while their rivals focused on food and beverages which was more popular with South Koreans.

The South Korean failure combined with the German loss led to Wal-Mart's first drop in profits in a decade.

• As of December 2006, the minimum wage is $2.92 (3,100 won) per hour.

• The Federation of Korean Trade Unions and other labor organizations asserted that the existing minimum wage does not meet the basic requirements of urban workers.

• As of 2004, the five-day workweek system has been adopted for employees of large conglomerates, publicly owned companies, banks, and insurance companies with 1,000 registered workers or more, reducing working hours to 40 hours a week.

• Labor laws mandate a 24-hour rest period each week and provide for a flexible hours system, under which employers can require laborers to work up to 44 hours during certain weeks without paying overtime, so long as average weekly hours for any given two-week period do not exceed 40 hours.

• The labor standards law prohibits the employment of persons under age 15 without a special employment certificate from the Labor Ministry.

• The law provides workers with the right to associate freely.

• The ratio of organized labor in the entire population of wage earners is approximately 11 percent, or 1.5 million unionists from a total of 14 million workers.

• The law provides for the workers' right to collective bargaining and collective action, and workers exercise these rights.

• The law also empowers workers to file complaints of unfair labor practices against employers who interfere with union organizing or who discriminate against union members.

• Under the Trade Union and Labor Relations Adjustment Act, unions must submit a request for mediation to the Labor Relations Commission before a strike.

Source: U.S. Department of State, "Republic of Korea: Country Report on Human Rights Practices," 6 March, 2007.

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