Operation of Auto Part Business in Korea

Working system and operation.

The working system of major auto parts manufacturers and foreign manufacturers operating in Korea adopt two-shift work schedules, daytime and nighttime, which is regarded as a typical work system. In case of office workers, working hours are 08:00-19:00, a single-shift system, but a few manufacturers adopt a three-shift system, although this is unusual in Korea. No significant differences were observed between domestic and foreign manufacturers. The time between the shifts is generally accepted as overtime work.

Average annual working days.

There is an average of 250 working days a year, with factory operation ratio of 80% or more on average during Q4 in 2004.

Actual Examples of Working Hours in Auto Parts Manufacturers

Recruitment (office workers and R&D positions)

A typical hiring method adopted by local manufacturers includes ordinary and extraordinary recruitment. An annual ordinary recruitment is the typical practice adopted by large-size manufacturers with 1,000 or more employees. Since the 1997 foreign currency crisis, which triggered a large-scale restructuring, recruitment began changing to an as-needed basis, instead of the traditional annual event-like practice.

Recruitment on the Internet.

Some major auto parts manufacturers began recruiting their manpower by advertising the recruitment on the Internet such as Pop-Up, so as to receive the applications, from time to time.

 Recruitment through industry-academic cooperation.

Some of the major manufacturers
offer scholarships to college or graduate school students they previously selected to secure eligible manpower in advance.

Open recruitment via the mass media

The most typical practice adopted by the companies
when they need to hire a large number of employees is advertising in daily newspapers, technical journals or college newspapers.

Recruitment using Search Firms (Head-Hunters).

The use of recruitment firms when

hiring workforce specializing in a specific area, or experts in core sectors, or executives, is becoming increasingly popular.

Recruiting factory workers

Recruiting through schools (vocational or technical, or ordinary high school) The most commonly applicable recruiting practice adopted by the businesses, which receive the recommendation on eligible students from the vocational or technical high schools at company's request.

Recruiting through vocational centers

The companies at times provide some trainees who
have completed a certain training course at vocation centers with a minimal training program required for jobsite service, before hiring.

Recruiting through personal recommendation

When requiring unskilled workers,

recommendations are received from existing employees, which is expected to shorten the recruiting process, as well as relatively quick adaptation to the assignment.

Labor costs

The wage level of the auto parts industry is relatively lower than that of assembly manufacturers, but the wages of parts manufacturers belonging to large-sized business or foreign-invested manufacturers are on a very similar level to those of auto manufacturers.

However, the small & medium-sized manufacturers still offer relatively low wages. The wages of Korean auto parts manufacturers are determined by seniority or job description, rather than labor's skill or performance commonly adopted by advanced countries.

The table below describes the wage levels in general. This data represents average labor costs.(The differences may vary by manufacturer or job grade, not corresponding to the table below)