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There has been a growing concern on 'bipolarization' of the economy in Korea, The objective of this study is to examine the limited value creating activities of the Small and Medium-sized Enterprises(SMEs) due to the economy's particular structure of subcontracting, and marginalization of workers of SMEs, Nearly half of the total revenue of SMEs come from subcontracting from bigger enterprises and subcontracting has been popular in the main export industries of the nation, i,e, automobiles, electronics, shipbuilding, and steels, In this circumstance, the recent bi-polarization between export and domestic sectors could be explained by examining the subcontracting structure.
The methodology of the study includes case studies of seven industries and the main findings are as follows, Differently from past experiences during the high-growth period when subcontracting contributed to co-development of both SMEs and larger companies, the recent decade, in particular since the financial crisis of 1997, recorded itself as a difficult era for SMEs with much reduced support from larger companies, It resulted mainly from changes in conglomerates' growth-first to profit-maximization attitude. That is, larger companies, using their monopolistic positions in the market, now ask SMEs to maintain costs as low as possible while raise the quality standard of supplied goods. SMEs are now obliged to contain wage increase of workers, making in turn wage gap between workers of larger companies and workers of SMEs increasing.
Meanwhile, large conglomerates did decrease their total labor costs by extending outsourcing, while recording at the same time a rapid increase in labor cost per person. This resulted in the increasing number of subcontractor SMEs and medium-sized enterprises made their own subcontracting, bringing about a multi-layered subcontracting structure in the nation. This whole process resulted in not only relative but also absolute reduction in the number of workers hired by large enterprises and the opposite increase in the number of workers in SMEs, in particular poor enterprises hiring less than 100 employees. It turned out that this stratification of employment, by affecting mutually the wage gap, aggravates the dual labor market.
The stratified labor market centered by big conglomerates in the Korea-specific chaebol system, by creating non-economic rents, may only obstruct growth of SMEs with new technology. In fact, a similar subcontracting structure to that of traditional heavy industries centered on chaebol, is found even in the high-tech software industry. Korean labor movement has not responded successfully to this problem, mainly due to their structural limitation as labor unions by enterprise and lack of strategies. Enhancing mobility of workers based on skill development could be a solution and this will also serve as a desirable direction for employers' as well as for the whole nation's development in the future.
The methodology of the study includes case studies of seven industries and the main findings are as follows, Differently from past experiences during the high-growth period when subcontracting contributed to co-development of both SMEs and larger companies, the recent decade, in particular since the financial crisis of 1997, recorded itself as a difficult era for SMEs with much reduced support from larger companies, It resulted mainly from changes in conglomerates' growth-first to profit-maximization attitude. That is, larger companies, using their monopolistic positions in the market, now ask SMEs to maintain costs as low as possible while raise the quality standard of supplied goods. SMEs are now obliged to contain wage increase of workers, making in turn wage gap between workers of larger companies and workers of SMEs increasing.
Meanwhile, large conglomerates did decrease their total labor costs by extending outsourcing, while recording at the same time a rapid increase in labor cost per person. This resulted in the increasing number of subcontractor SMEs and medium-sized enterprises made their own subcontracting, bringing about a multi-layered subcontracting structure in the nation. This whole process resulted in not only relative but also absolute reduction in the number of workers hired by large enterprises and the opposite increase in the number of workers in SMEs, in particular poor enterprises hiring less than 100 employees. It turned out that this stratification of employment, by affecting mutually the wage gap, aggravates the dual labor market.
The stratified labor market centered by big conglomerates in the Korea-specific chaebol system, by creating non-economic rents, may only obstruct growth of SMEs with new technology. In fact, a similar subcontracting structure to that of traditional heavy industries centered on chaebol, is found even in the high-tech software industry. Korean labor movement has not responded successfully to this problem, mainly due to their structural limitation as labor unions by enterprise and lack of strategies. Enhancing mobility of workers based on skill development could be a solution and this will also serve as a desirable direction for employers' as well as for the whole nation's development in the future.
목차
Ⅰ. 머리말
Ⅱ. 하도급구조와 중소기업
Ⅲ. 기업간 고용분화와 임금격차
Ⅳ. 불공정 하도급구조의 요인과 노동운동의 역할
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UCI(KEPA) : I410-ECN-0101-2009-910-015210031