After experiencing compressed industrialization, the Korean economy underwent rapid opening and changes in its industrial structure, a process that is ongoing today. These changes are obviously affecting a host of labor issues that emerged as the income gap grew worse. The late 1990s and early 2000s saw an increase in non-regular jobs, more outsourcing, relocation in the manufacturing sector, and the growing share of the service sector as a result of the policy of reform and flexibility in the labor market. Ultimately, these factors have led to labor market dualization and a shortage of decent jobs. Meanwhile, the social insurance program provides some guarantee of income, but its application leaves much to be desired, as many people remain uncovered. The Korea Labor Institute has been analyzing these issues and recommending policy options, and offers a part of the results in English. This book, which introduces the study results of 2010, includes one or two papers on each of the following topics: employment structure and wages, labor?management relations, and social security. Chapter 1 (Soo-Mi Eun) introduces the growing trend of in-house subcontracting, analyzes the cause, and offers some possible solutions. Chapter 2 (Jin-Ho Jeong) examines how the adoption of and increase in the minimum wage affect the wage distribution of all workers, not only those receiving the minimum wage. Chapter 3 (Jae-Ho Keum) looks into the trends in the gender wage gap since the 1997 Asian financial crisis and discusses the reasons why it has persisted instead of shrinking. Chapter 4 (Hoon Kim and Jong-Hee Park) reviews the employee representation system as an alternative to fill the gap in the role of unions left by the continuing decrease in Korea’s organization rate. Chapter 5 (Byung-Hee Lee) reviews the insurance premium subsidies program as a policy tool to fully expand social insurance coverage and increase formal employment. Chapter 6 (Sung-Hee Lee) presents an overview of Korea’s industrial relations landscape after the introduction of multiple trade unions in July 2010. The studies in this book not only introduce the latest labor issues in Korea but also review new trends and evaluate policy performance in related areas. It is humbly wished that the book will help readers in and outside of Korea further their understanding of recent changes in employment and welfare in the country. Your continued interest and encouragement will be most appreciated.

1) In-House Subcontracting in Korea and Reasons for Its Use(Soo-Mi Eun) 1 2) The Wage-Distribution Effect of the Minimum Wage(Jin-Ho Jeong) 38 3) Study of the Phenomenon and Cause of the Gender Wage Gap(Jae-Ho Keum) 67 4) Rebuilding the Employee Representation System: Necessity and Basic Direction(Hoon Kim and Jong-Hee Park) 105 5) Promoting Registration for Social Insurance through Insurance Premium Subsidies(Byung-Hee Lee) 140 6) Empirical Study on the Impact of Multiple Trade Unions on Industrial Relations(Sung-Hee Lee) 165