South Korea is currently subject of fierce discussion in the theoretical debate concerning development. South Korea’s “take off” is not denied. During a period of 19 years the land of farmers becomes an industrial nation ranking in the world trade statistics among the first 20 states. The gross national product amounts to 35 % in 1980. During 1962-1980 the growth rates of the GNP comes to 8.4 % on average per year. The income per head amounts to 1,503 US$.
With the illustration of the working conditions in chapter 1 it is intended on the one hand to disclose the exaggerated exploitation of the male and female workers and on the other hand to point out some differences in the extent of the attrition of the work forces.
In chapter 2 the development of the remuneration und the destination factors of the wage findings are outlined. Herein it is also intended to disclose the fractions among the working force which have got above-average wage increases.
The participation of the collection of national richness caused by the economic development is expressed in the changes within the consumption structure of the wage-earners’ households. The shift in-between the consumptive expenditures will be the focus of chapter 3.
In chapter 4 the development of the collective consumption of South Korea is drawn. Which measures are taken by the state in order to redistribute the national income in favour of the part of the population with low income? What about the social security system in South Korea? Is the state guaranteeing a minimum of living quality or are the poor left to themselves?
In the last part of the essay (chapter 5) the development of the income distribution will finally be outlined in order to point out a possible polarisation of the population. At the same time the poverty in South Korea will be quantified and put into the context to the pursued economic way.
Table of Contents
I. WORKING CONDITIONS
I.1. Working Hours
I.1.1. The Working Hours in the colonial time and during the occupation by the USA
I.1.2. The working times according the “Labour Standard Law”
I.1.3. Summary
I.1.4. The Working Times of Employees
I.1.5. Main investigation results of the working times
I.2. Intensity of Work
I.3. Work Place Conditions
I.4. Vocational Diseases and Accidents at Work
I.5. Labour Turn-over Rate in the Industry of South Korea
II. WAGES
II.1. Salary Determination Process
II.1.1. Historical determination of the general wage level
II.1.2. Excursus: Trade unions and worker movement in South Korea
II.1.3. Statutory regulations for overtime payment
II.1.4. Labour market structure
II.2. The Korean wage system
II.2.1. Wage structure
II.2.2. Determination of wages within the company
II.3. Wage Development
II.3.1. Real Wage Increases in the 70s
II.3.2. Wage differences by economic sectors
II.3.3. Wage differences by profession groups
II.3.4. Wage rises and productivity increases in manufacturing
II.3.5. Wages in manufacturing by branches (1970, 1975, 1980)
II.3.6. Wage differences by gender
II.3.7. Summary
III. CONSUMPTION STRUCTURE
III.1. Reduction of the size of household
III.2. Oscillations in the amount of the working family members
III.3. Reduction of Food Expenses (“Engel’s Law”)
III.4. Expenditure for nutrition by main groups
III.5. The expenditures of the worker households for housing, energy, clothing and miscellaneous
IV. COLLECTIVE CONSUMPTION
IV.1. The expenses for „Social Security Program“ in South Korea in comparison of nations
IV.2. Central Government Expenditure
IV.3. The provisions of the “Social Security Program” (SSP)
IV.3.1. Insurance System
IV.3.2. Livelihood-Protection Program (LLP)
IV.3.3. Self-Welfare Services
IV.4. Summary and Outcome
V. INCOME DISTRIBUTION AND POVERTY IN SOUTH KOREA
V.1. Distribution data of South Korea in comparison to other nations
V.2. Historical Reasons for the moderate income inequality
V.3. Development of income distribution in the 70s
V.4. Poverty in South Korea
V.5. Socio-economic Attributes of the urban households of the poor
V.6. Summary and outcome
Research Objectives and Topics
The study examines the working and living conditions in South Korea between 1965 and 1980, specifically focusing on the export-oriented industrialization phase and its impact on the labor force. The research investigates whether the national economic success has genuinely improved the quality of life for workers or if it has been built upon the exploitation of a cheap and disciplined workforce.
- Analysis of working hours, workplace conditions, and labor turn-over rates in the industrial sector.
- Investigation of wage determination processes, the role of trade unions, and real wage development.
- Exploration of consumption structures and the socio-economic status of different types of households.
- Evaluation of social security programs and collective consumption in South Korea.
- Assessment of income distribution patterns and the extent of poverty among the urban population.
Excerpt from the Book
I.1.4.5. Illustrations to the working times
In Seoul at the area of “peace market” (“Chonggyecheon”) 1000 small textile companies are located in a huge building with three to four floors. In these companies more than 20,000 young workers are employed, about 90 % are female and between 14 to 24 years old. More than half are less 15 years old.
The economic importance of the here located textile and clothing industry is enormous:70 % of the domestic production of textile and clothing industry are produced within the area of the peace market. 1977 the production value of these goods amounts to 10 Billion US $.
The working conditions in the small shops are catastrophic. Particularly hard hit are the young girls who are solely employed as assistant (“Shida” or “Hirodo”) often aged 13 or 14 years old, getting only a low payment calculated by the produced unit of the sewer.
“At a company some permanently employed women noticed, that an ‘assistant’ couldn’t afford a meal on the ground of poverty. They shared their meal with the girl and also were tracing the problem and came to the conclusion that 30 % of the female workers renounced their lunch. Herein lays the cause for stomach diseases and TBC.”
Summary of Chapters
I. WORKING CONDITIONS: This chapter analyzes the length of working days, work intensity, workplace hazards, and labor turnover rates, concluding that the workforce faced extreme working hours and dangerous conditions during the industrialization era.
II. WAGES: This section investigates how wages are determined, the limited role of trade unions, and the wage development in manufacturing, revealing that real wage increases lagged behind economic growth.
III. CONSUMPTION STRUCTURE: This chapter examines the consumption and expenditure habits of worker households, highlighting the reliance on multiple family earners due to low wages and the high burden of educational and housing costs.
IV. COLLECTIVE CONSUMPTION: This part assesses the state’s role in social security and public expenditure, arguing that most social benefits are concentrated on civil servants, leaving the general workforce with minimal protection.
V. INCOME DISTRIBUTION AND POVERTY IN SOUTH KOREA: This final chapter discusses income inequality and poverty levels, emphasizing the deterioration of income distribution during the 1970s and the social costs of the development model.
Keywords
South Korea, export-oriented industrialization, working conditions, wage policy, labor exploitation, trade unions, consumption structure, social security, poverty, income distribution, gender inequality, manufacturing, economic development, structural heterogeneity, labor market.
Frequently Asked Questions
What is the core focus of this research?
The work examines the working and living conditions in South Korea during the era of export-oriented industrialization (1965–1980), analyzing the social impact of this rapid economic growth.
What are the primary thematic areas covered?
The study covers working hours and conditions, wage development, household consumption structures, the state of social security systems, and the evolution of income distribution and poverty.
What is the primary objective of this work?
The main objective is to determine if the country's economic success was achieved through the systematic exploitation of the labor force and to analyze the morality of the "export-at-any-price" policy.
Which scientific methodology is employed?
The author uses a socio-economic approach, analyzing official statistical data, governmental reports, and first-hand empirical evidence gathered through field research and interviews with workers and managers.
What topics are treated in the main body?
The main body details the reality of the labor force, including long working hours for women and children, the lack of effective trade union representation, wage stagnation, and inadequate social welfare provision.
Which key terms characterize this study?
The study is characterized by terms such as export-oriented industrialization, labor exploitation, wage policy, income distribution, and structural heterogeneity.
How does the author describe the situation of women in the Korean industrial sector?
The author highlights that women faced significantly longer working hours than men and received much lower wages, often being subjected to patriarchal social values to justify their lower compensation.
What is the conclusion regarding the Korean "Social Security Program"?
The author concludes that the program is highly exclusionary, primarily benefiting state-employed civil servants while failing to provide significant protection or relief for the majority of the working population.
- Quote paper
- Kurt Lehberger (Author), 1984, The Working and Living Conditions in South Korea in the stage of the export-oriented Industrialization (1965-1980), Munich, GRIN Verlag, https://www.hausarbeiten.de/document/316903
