Human Resources in South Korea

Pages 4 (1004 words)
Download 0
First of all, to set up a branded concept in South Korea, the economy must be evaluated. Its economic freedom according to the Index of Economic Freedom is 67.9% making it to be the world's 41st freest economy. This means that it has high levels of business freedom, investment freedom and property rights freedom.


(Zimmermann and Sparrow, 2008)
To start, operate and close a business is well protected by South Korea's regulatory environment. Starting a business takes an average of 17 days compared to the world's average of 43 days. Obtaining a license will take less than the world's average of 19 procedures and 234 days. Closing a business is also easy. (Hesketh and Fleetwood, 2006)
The investment climate is increasingly open. The government offers incentives such as cash grants and zero-corporate tax zones; has a one-stop-shop for foreign investments; and assigns an official to facilitate each project. Residents and non-residents may have foreign exchange rate accounts. (Hesketh and Fleetwood, 2006)
Trade, fiscal and labour freedoms are relatively weak. Monetary score is hurt by government subsidies of several sectors. Non-tariff barriers are very common. The labour market remains rigid despite the government's effort to enhance market flexibility in recent years. There are burdensome employment regulations that hinder employment opportunities and productivity growth. The non-salary cost of employing a worker is low, but dismissing a redundant employee is costly. The high cost of laying off a worker creates a risk aversion for companies that would otherwise hire more people and grow. Regulations related to the number of work hours are not flexible. (Zimmermann and Sparrow, 2008)
The ...
Download paper
Not exactly what you need?