From Shipyards to Finance, Firms Turn to Short-Term Hires (Image supported by ChatGPT)
SEOUL, Aug. 28 (Korea Bizwire) — South Korea’s largest companies have sharply increased their reliance on temporary workers over the past four years, raising questions about job stability in one of Asia’s most industrialized economies.
According to data released Wednesday by CEO Score, which analyzed quarterly filings from 334 of the country’s top 500 companies by revenue, the total workforce at those firms stood at 1.32 million in June. Of that, 103,259 were on temporary contracts — or 7.8 percent of the total.
While overall headcount rose just 3.7 percent since mid-2021, the number of temporary employees jumped 25.7 percent, adding more than 21,000 workers. The share of contract staff in the corporate workforce climbed from 6.4 percent to 7.8 percent over the same period.
More Jobs, Less Security: Korea’s Contract Workforce Expands (Image supported by ChatGPT)
Some firms posted especially steep increases. At Samyang Foods, temporary workers rose from 2.2 percent of its workforce in 2021 to 25.6 percent this year, driven by surging global demand for its popular Buldak spicy ramen. The company added just 69 regular employees in production over four years, compared with 600 temporary hires.
Citibank Korea saw its ratio of temporary staff rise from 5.2 percent to 28.3 percent after scaling back consumer banking operations and rehiring many retirees on short-term contracts.
At Meritz Financial Group, the figure jumped from 25 percent to 46.2 percent, reflecting the prevalence of commission-based sales roles. HD Hyundai Mipo Dockyard also posted a dramatic increase, from 1.6 percent to 22.5 percent.
South Korea’s largest companies have sharply increased their reliance on temporary workers over the past four years. (Image courtesy of CEO Score)
By contrast, some companies reduced reliance on contract labor. Agricultural machinery maker Daedong cut its temporary share from 28.1 percent to 10.2 percent, while construction services firm GS S&D, HD Hyundai Chemical, and shipping company Pan Ocean also recorded double-digit declines.
Across industries, shipbuilding, machinery and equipment companies posted the largest rise in temporary staff, with the sector’s share climbing from 8.9 percent to 14.9 percent. Automobiles and parts, trading firms, steel, banking, and transport followed with smaller gains.
Analysts noted that while temporary roles can offer flexibility and high commissions in finance and sales, the trend highlights widening gaps in job security.
“The surge in contract employment reflects both corporate restructuring and sector-specific labor models, but it also underscores the challenges of sustaining stable employment in a changing economy,” CEO Score said.
M. H. Lee (mhlee@koreabizwire.com)
