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South Korea

Companies from South Korea

Foreign companies established in this country.

Economy, tax incentives & labor conditions

The law on Special Economic Zones (SEZs) of July 2003 contains preferential provisions in relation to foreign companies investing in the SEZs. It exempts them from many national regulations on the protection of the environment and labour standards. It is feared that this will result in further violations of workers' rights. The trade unions have objected particularly to the fact that the new law makes it easy to hire "irregular" workers, who will have little or no protection.
(ITUC-CSI , Suisse , 01/12/2007 , Annual Survey of violations of trade union rights )

Employers used Article 314 of the Criminal Code, barring "Obstruction of Business" to systematically harass and seek the incarceration of union leaders, and to try and bankrupt unions. Despite the abusive and discriminatory way in which Article 314 was used against workers, the government did nothing to intervene or clarify the law – preferring to remain complicit in the anti-union actions perpetrated under this criminal code. The charge of "Obstruction of Business" was indiscriminately used by vengeful employers against union leaders who were seeking to collectively bargain, hold meetings, conduct strikes and pickets, and other basic, fundamental union activities. Employers also commonly used the government’s prosecution of workers under this law to justify further company disciplinary measures, including termination. Article 314 carries heavy penalties under law – a worker found guilty faces up to five years imprisonment or a fine of up to 16,000 USD.
(ITUC-CSI , Suisse , 01/12/2007 , Annual Survey of violations of trade union rights )

Three special economic zones in Busan-Jinhae, Incheon and Gwangyang. Income and corporate tax exemption during 7 years.
(Entreprise , 01/01/1999 )

Main violations of the human rights and dirty money laundering
(year and company name)

2004 Novartis AG

Main labor right violations
(year, company name and norm number)

2006 Kiryung Electronics Co. 87
2006 Lafarge SA 87
2006 Marriott International Inc. 87,98
2006 POSCO (Pohang Iron & Steel Co.) 87
2002 KEPCO (Korea Electric Power Corp) 87, 98


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