Korean Job Discussion Forums

[justin moffatt]

During my limited time in South Korea, I am constantly amazed how many times employers breach their contractual agreements. I have yet to experience one employer who DOES NOT infringe on the contract in some fashion (i.e. pay, dismissal, hours, vacation etc.).

Furthermore, does anyone know the labor laws concerning breaking a contract BEFORE starting employment. My understanding is that the employer can cancel the contract anytime before resuming employment (and in many cases during) for any reason. However, if the employee requests to cancel the contract, there are serious repercusions.

In other words, I grow tired of agreeing to a position, sign the contract and have the prospective employer bail out last minute. As a result, I lose many other potential employment opportunities. There must be a legal recourse for employees. For example, in the USA and Canada, an employee can sue an employer who cancels the contract for a minimum of 2-4 weeks pay (depending on the state or province), as well as any additional moving expenses as a result of relocation for the new employer.

Please post any response and experiences regarding these matters. Thanks!

[lover.asian]

[justin moffatt]

LOVERASIAN:

Exactly. After being privy to Korean business practices, I have advised my business colleagues in North America NOT to invest in any Korean businesses due to breaches of contract. My initial desire to develop businesses in South Korea has also been extinguished. Last of all, to my educator colleagues I have also suggested not to consider in any long term employment here due to breach of contract issues.

Koreans wonder why foreign investors are pulling out of Korea. Ironically, they don't care because they live in this illusion that South Korea is self sufficient without foreign investment (and foreigners for that matter).

[TheUrbanMyth]

[justin moffatt]

URBAN MYTH:

Point taken. However, one must inquire why the Korean government finds it necessary to impose incentives for foreign companies to invest here. That is not to say that, Korean business practices are SOLELY responsible for the need for Korean government to create incentives, although it does beg the question. There will always be continued investments and take overs by multinational foreign companies when there is money to be made. However, I will venture to guess that smaller companies will be reluctant to develop relationships with Korean companies here. Furthermore, I know many international businesspeople here who often tell me about the deception and dishonesty in Korean business transactions. Perhaps this is why some large multinational foreign companies simply just takeover Korean companies. Although, I have heard of many international companies also severing partnership with Korean companies based on financial issues and concerns over Korean business practices.

[AwesomeA]

Why just limit it to Korean business practices? Every business has it's fair share of deception. In my uneducated menial labor job days, I experienced a fair amount of nonsense. Whoever says that foreign companies don't play similar games are obivously in the dark. Have you seen the Big One by Michael Mooore?

[spliff]

Can't believe that M. Moore has a big one...must be refering to his gut..

[that guy]

TheUrbanMyth your article is from 2005. Last year saw a decrease in foreign direct investment with the US dumping the largest amount.

http://times.hankooki.com/lpage/200701/kt2007010315334768040.htm

[jmbran11]

I realize that no one wants to hear this, but my contract has never been breached and has been adhered to strictly. To the best of my knowlege, this is true of all employees at my company. My best guess is that this is because it's an "intenational" company that understands contracts in the western sense.

I'm not trying to disagree - I know everyone needs to vent. I just want to be fair to my boss, who does follow my contract to the letter.

[Ilsanman]

I have had a job that didn't breach the contract. However, they did push the envelope a bit. JUst if the teacher stood up to the boss and said no, he would back down.

It's Korean (try not to laugh) culture.

[babtangee]

[justin moffatt]

I am curious if this trend of decreased US investment will continue, especially after the North Korea missle testing. Not surprisingly, investment in electronics and technology is continuing to increase. It would be interesting to see if foreign companies choose to financially takeover Korean electronic companies or continue relations with them.

[TheUrbanMyth]

[TheUrbanMyth]

[ontheway]

The big drop in US direct investment in Korea in the time period mentioned is likely related to the large drop in the value of the US dollar relative to the Korean won.