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by Sophia Seung-yoon Lee
12th April 2024

In the bustling economy of South Korea, a hidden narrative unfolds – a story of labour precarity that reshapes the fabric of work and life in the 21st century. As we navigate through unparalleled economic challenges globally, the nuances of precarious employment in South Korea offer a critical lens for understanding labour market vulnerabilities worldwide.

At the heart of this narrative is the concept of ‘melting labour’, a term I coined to capture the fluid and ever-changing forms of work that characterise the modern labour market. Unlike traditional (non-) standard or (in)formal work, melting labour encompasses a broad spectrum of precarious employment – ranging from contract work to gig economy jobs – underpinned by uncertainty, insecurity and vulnerability. This concept not only highlights the multifaceted nature of precarity but also underscores its deep-seated roots in economic and policy frameworks.

Melting labour represents a significant shift from the binary understanding of work as either standard or non-standard, formal or informal. It captures the increasingly blurred lines between these categories, as workers navigate a continuum of precarity shaped by factors such as job security, income stability, social protection and career prospects. The concept emphasises the dynamic and fluid nature of contemporary work arrangements, where individuals may transition between different forms of employment or combine multiple jobs to make ends meet.

The phenomenon of melting labour is particularly salient in South Korea, a country that has undergone rapid economic development and digital transformation in recent decades. The Korean labour market has been characterised by a dual structure, with a core of regular, full-time employees enjoying job security and benefits, and a periphery of non-regular workers facing precarity and instability. However, the boundaries between these two segments are increasingly blurred, as new forms of work emerge that defy traditional categorisations.

South Korea serves as an important case study for examining melting labour for several key reasons. First, the country’s rapid adoption of digital technologies and platforms has accelerated the growth of the gig economy and other forms of non-standard work. South Korea has been described as a global leader in digital transformation, with an internet penetration rate of 96.5% as of 2021 . South Korea’s online shopping transaction volume reached 209.88tn KRW, with an annual online shopping sales growth of 12.3%, indicating that South Korea is one of the biggest and fastest-growing e-commerce markets worldwide, further demonstrating the country’s rapid digital transformation. This has led to the emergence of new labour market dynamics that challenge existing regulatory frameworks and social protection systems. Second, South Korea’s demographic changes, such as an ageing population and low birth rate. South Korea’s total fertility rate, which measures the average number of children a woman is expected to have in her lifetime, fell to 0.78 in 2022, the lowest in the world. South Korea the proportion of the population aged 65 and older reached 11.8% in 2012, up from just 7.2% in 2000, and is projected to reach 37.4% by 2050. These demographic challenges have put pressure on the traditional employment model, leading to a greater reliance on flexible and temporary labour. Finally, the country’s high rate of precarious work, despite its highly educated workforce, highlights the pervasive nature of melting labour and the urgent need for policy interventions.

The stories of individuals navigating the precarious labour market in South Korea bring to light the human element of this issue. One such narrative is that of Kim, a contract worker in the manufacturing sector, who juggles multiple temporary jobs to make ends meet. Kim’s experience as a contract worker in the manufacturing sector is particularly relevant to South Korea, where the use of temporary workers has been widespread since the 1997 Asian financial crisis. The country’s “bifurcated” labour market, characterized by a sharp distinction between regular and non-regular workers, has led to a significant wage gap and limited job security for temporary employees like Kim. His experience highlights the resilience and adaptability of workers facing the uncertainties of melting labour.

Another narrative comes from Lee, a freelance graphic designer, who enjoys the flexibility of choosing her projects but also grapples with the lack of stable income and social security benefits. Her story underscores the precariousness of her employment situation. South Korea has one of the highest rates of self-employment among OECD countries. However, many self-employed workers in South Korea, like Lee, face challenges such as unstable income and limited access to social protection.

In the call centre industry, we find the story of Park, a young female worker employed by a subcontractor. Despite being a permanent employee, Park faces job insecurity and poor working conditions. She struggles with the constant pressure to meet performance targets and the lack of work-life balance, as she often works long hours without proper break times. Park’s experience exemplifies the challenges faced by subcontracted workers in the service sector, who are often excluded from the protections and benefits enjoyed by regular employees.

Another call centre worker, Choi, shares her experience of being unable to take maternity leave due to the insecure nature of her employment. As a subcontracted worker, Choi fears losing her job if she takes time off for childbirth and childcare. Her story highlights the gender-specific vulnerabilities faced by female workers in precarious employment, who often have to choose between their career and family responsibilities. The South Korean government has implemented policies to support work-life balance, such as expanded parental leave and subsidies for childcare, but progress has been slow. Despite the social policy development, many women face discrimination and difficulty in returning to work after childbirth.

These stories, and many others like them, are crucial for understanding the impact of melting labour on individuals and society. They exemplify the challenges faced by workers in navigating a labour market that is increasingly characterised by instability and risk.

By examining the phenomenon of melting labour in South Korea, my research aims to shed light on the broader implications of precarious work for individuals, families, society and the welfare state. The stories of workers like Kim, Lee, Park and Choi are not unique to South Korea; they are emblematic of a global trend toward greater labour market insecurity and fragmentation. Understanding the drivers and consequences of this trend is crucial for developing new approaches to labour market regulation, social protection and skills development that are better suited to the realities of the 21st century workplace.

The implications of my research and the concept of melting labour extend beyond South Korea, mirroring global trends that challenge existing labour policies and social safety nets. By examining the intricate dynamics of melting labour and its mismatch with current social protection institutions, my study invites cross-disciplinary collaboration to forge new pathways for understanding and addressing labour market vulnerabilities and precarious work.

As we stand at the crossroads of economic and digital transformation, the findings of this study serve as a clarion call for policy makers, researchers and society at large. Addressing labour precarity is not merely an economic imperative but a moral one, crucial for fostering a just and equitable society. The journey toward understanding and mitigating the impacts of precarious employment is complex, but with collaborative effort and innovative thinking, transformation is within reach.

Sophia Seung-yoon Lee is Professor of Social Policy in the Department of Social Welfare at Chung-Ang University.

 

Varieties of Precarity by Sophia Seung-yoon Lee is available on the Bristol University Press website. Order the book here for £80.00 or the EPUB for £27.99.

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Image: Janosch Lino via Unsplash