Summary of "Why You Can’t Get Fired in South Korea | AB Explained"

Summary of Business-Specific Content from “Why You Can’t Get Fired in South Korea | AB Explained”

Key Themes

South Korea’s extremely strict labor laws and their unintended negative impact on business operations, hiring, workforce management, and economic growth.
Historical context explaining the evolution of labor laws and corporate culture shaped by authoritarian regimes focused on rapid industrialization at the expense of worker rights.
The paradox where strong employee protections have led to overwork, underemployment, toxic office politics, and brain drain.

Frameworks, Processes, and Legal Structures

Labor Standards Act (Post-1987 Reform)

Article 23: Employers cannot dismiss workers without “justifiable cause” such as theft, violence, or excessive burden on the company. Poor performance or business slowdown are not valid reasons for dismissal.
Article 24: Layoffs for managerial reasons require “urgent business necessity” (e.g., imminent bankruptcy). Companies must exhaust other options (pay cuts, temporary shutdowns) before layoffs.
Labor Relations Commission: A quasi-judicial body mediating disputes, heavily favoring workers. Approximately 57% of disputes resolved by mediation favor employees, with some regions up to 90%.
Penalties: Wrongful dismissal can lead to up to 5 years imprisonment for executives and fines around $25,000 USD.

Workaround Tactics for Employee Separation

“Gwon-go-sa-jik” (Voluntary Resignation): Companies encourage employees to quit voluntarily, often by offering severance packages above legal minimums (e.g., Google Korea offers 6 months salary, Netflix 4+ months).
Social Pressure & Office Politics: Employees may be sidelined by removing meaningful work, access to tools, or isolating them socially to force resignation without formal dismissal.
“Myung-yeh-twe-jik” (Honorable Retirement): Early retirement for older employees (40s+) pressured through social exclusion, reducing labor costs and making room for younger workers.

Key Metrics and KPIs

Labor Market Impact:
- Over 1,000 deaths from overwork in the past 5 years (~200+ annually).
- Youth unemployment rate appears low (5-6%) but is misleading; stable full-time jobs are scarce.
- 2025 survey: 56% of mid-sized companies have no plans to hire new full-time employees due to labor cost burdens and inability to fire underperformers.
- Contract/temporary workers make up over one-third of wage workers in 2025, often without full benefits.
- Hiring slump: fewer than 40 full-time jobs available per 100 applicants (worst since Asian financial crisis).
- WeWork Korea example: despite global bankruptcy, Korean subsidiary still operates 20 locations due to inability to lay off staff.
Wage and Severance:
- Mandatory severance: at least one month’s average wage per year worked.
- Top companies exceed this significantly in voluntary resignation packages.

Concrete Examples and Case Studies

London Bagel Museum Overwork Death (2025): An employee worked 80 hours in one week, with brutal shifts up to 21 hours straight, resulting in death from cardiac arrest. This incident triggered government workplace inspections and media attention on labor law consequences.
Sexual Harassment Case (2020): A director fired for sexual harassment won a wrongful termination lawsuit and was reinstated by the Labor Relations Commission, forcing victims and perpetrator to work together.
WeWork Korea Layoffs (2019-2021): Despite the parent company’s bankruptcy and global workforce reduction, the Korean subsidiary was unable to force layoffs, illustrating the rigidity of Korean labor law.
Historical Labor Movement:
- Tae-il Jeon’s self-immolation in 1970 spotlighted brutal working conditions and lack of enforcement of labor laws.
- The 1987 Great Workers Struggle involved over 1 million workers nationwide striking, forcing wage increases (20-30%) and legal reforms leading to current strict protections.

Actionable Recommendations and Insights

For Companies Operating in South Korea

Prepare for labor laws that heavily favor employees in disputes; dismissal requires clear, justifiable cause and urgent necessity.
Use voluntary resignation packages and social pressure tactics to manage workforce reductions, but be aware of legal and reputational risks.
Consider hiring more contract or temporary workers for flexibility, but note potential impacts on morale and benefits compliance.
Invest in positive corporate culture to retain top talent and avoid toxic office politics that drive brain drain.
Small businesses and startups face particular challenges complying with strict labor laws (e.g., 52-hour workweek), which may hamper growth and innovation.

For Policymakers and Business Leaders

Balance worker protections with economic flexibility to encourage hiring and innovation.
Overprotection can lead to understaffing, overwork, and loss of talent to other countries.
Consider clearer definitions and more balanced dispute resolution mechanisms to reduce subjective interpretation and bias in labor commissions.

Summary of Business Impact

South Korea’s labor laws, born from a history of authoritarianism and worker suppression, swung to extreme worker protections post-1987.
These laws create high barriers to firing, leading companies to avoid hiring full-time staff, resulting in overwork and burnout of existing employees.
The rigidity and legal risk cause companies to rely heavily on contract workers, often with fewer benefits and job security.
The resulting toxic workplace culture and lack of flexibility contribute to brain drain, especially in tech and innovation sectors.
Multinational companies face significant challenges managing Korean subsidiaries, as seen with WeWork Korea.
The government’s job creation efforts are undermined by these structural labor market issues.

Presenters / Sources

Asian Boss (AB Explained) narrator and research team.
Cited sources include Korean Ministry of Employment and Labor, National Labor Relations Commission reports, Korean media case studies, and historical labor movement accounts.

This summary focuses on the business and organizational implications of South Korea’s labor laws as explained in the video, highlighting legal frameworks, operational challenges, workforce management tactics, and economic consequences.