People want to know why things are so expensive in Korea and though many reasons are offered, in many cases the real reason is because of the middle-man subculture that is endemic in Korea. Before the current truckers strike, truckers had bitterly complained about making almost no money from running a load, now due to high fuel costs. The real reason they make little money is because of how transportation is done in Korea, where middle-men eat the majority of profits, thus keeping prices high. The system is rigged so that one most business must go through these guys. As per the JoongAng Ilbo
The government yesterday held an emergency meeting with the ruling Grand National Party to draw up new legislation to deal with strikes. During the meeting, they planned to reduce the multi-layered contract structure of the transport and distribution industry, which hands a large chunk of earnings to middlemen who employ truckers.
The real question for me is will there be any real reform or just a shuffling around of pieces until business finally goes to hell in a hand-basket?
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You mean business owners are paying their employees a pittance while keeping the lion’s share of the profits and gouging the consumer?
Say it ain’t so Joe!
No, I mean middle-men.
They don’t own (mostly), they just gouge and both left-wing and right-wing parties have let this pile up through the years, only to have this problem come back to haunt the country in the worst sort of way.
I do not think that one can dig their way easily out of this problem either (canal?) without killing this way of doing business completely.
It’s seen throughout industries in Korea. It’s even seen in the English industry — in recruiters who gouge for doing little to nothing.
It’s not going to change. I feel so sorry for 3D workers.
“The government yesterday held an emergency meeting with the ruling Grand National Party to draw up new legislation to deal with strikes. During the meeting, they planned to reduce the multi-layered contract structure of the transport and distribution industry, which hands a large chunk of earnings to middlemen who employ truckers.”
Like over employment in the Chaebols, this multi-layered system is apartof the welfare system here in Korea. For worse (or better) the consumers subsidizes this over employment.
Craig: “Like over employment in the Chaebols, this multi-layered system is apartof the welfare system here in Korea. For worse (or better) the consumers subsidizes this over employment.”
Inteeeeeresting comment. I worked for Samsung from 2002 - 2005 with the creme de la creme of the Korean professional workforce at the creme de la creme of Korean industry.
My observations: College graduates who make it into Samsung are entering a good ol’ boy’s club where pretending to work hard while kissing the right butt is rewarded and individual responsibility is not. I found the company to be poorly managed and the workforce to be effete elitists.
Basically, the Samsung employee gets automatically promoted up the ranks according to his seniority until the bottleneck at cha jang (funtional manager) position. Beyond that, only the best connected advance and are eventually retired by being appointed an honorary title at some little-known subsidiary where they drift for a few years before retiring with a full package.
It’s not that Samsung employees don’t work long hours. But the productivity is exceedingly low in proportion to the time spent on the job. And the main work involves constant reporting. The real product of Samsung is reports. Do a report. Make sure it reflects the personal prejudices of your Vice President and doesn’t make any waves. Report it up the chain. Make sure it incorporates the right percentage of English phrases and Chinese characters that are specified in the Samsung Reporting Manual.
The content is often questionable in terms of accuracy and actual value to the organization, but if it contains NEW TERMINOLOGIES that sound impressive, then it is considered groundbreaking.
As for implementation, the idea is thrown out and implemented. Half of the initiatives are never seriously implemented, and there is very little follow up to ensure that it works. It is much like throwing mud against the wall.
Corporate governance? That’s why subsidiaries like Samsung Life exist - to lauder the money.
Some of those who don’t advance are quietly pushed out the door. Often they become subcontracted employees doing the same job at less pay and poor benefits.
Sonagi: “Some of those who don’t advance are quietly pushed out the door. ”
You’re right, of course. But it is virtually impossible to be fired until you reach that glass ceiling at kwa jang level as long as you tow the line.
One of my associates relayed to me that he had gotten a peek at his personnel file and saw the following black mark against him: “he is rather private (kae in cheok”). In other words, keep an eye on him, we’re not really sure he’s one of the boys.
That whole “protecting domestic firms from foreign competition” might have something to do with it…
“man this beef is expensive. If only there were a country that had economic factor endowments more conducive to raising livestock than our own teeny tiny half-peninsula!”
Ah, someone at the JoongAng has caught on as well. I thought these guys knew more about this already thus I wonder why they are not more active writing exposes about this sort of economic cannibalism that is bad for the country.
Perhaps this is why so many netizens distrust the “big three” papers (?).