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ABSTRACT This article documents the rise of organized labour and the emergence of overt industrial conflict in the Republic of Korea since democratization in 1987, and the crisis of world competitiveness of Korean industry to which the gains of organized labour contributed. Based on an analysis of the characteristics of the actors in the Korean industrial relations system, the nature of the conflict and its consequences are assessed. It is argued that, in forcing the pace of economic restructuring towards high‐tech/high‐wage sectors, organized labour, often characterized by state and business elites as a ‘problem’, may turn out to be a progressive force.
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