Temporary Worker Conversion Rates Decline, Mega-Special Zones May Worsen Job Insecurity

South Korea's "Act on the Protection of Temporary and Part-Time Workers" (Temporary Worker Act), enacted in 2007 to limit the employment of temporary staff to two years before conversion to permanent roles, appears to be failing its objective. Recent research commissioned by the government indicates a significant drop in the conversion rate of temporary workers to permanent positions over the last decade.

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The temporary job is increasingly functioning as a 'trap' (a snare) rather than a 'bridge' (to permanent positions).

The study, based on Korean Labor Panel Survey data, shows that between 2012 and 2022, the proportion of temporary workers in companies with over 100 employees who transitioned to permanent roles fell to 6.5%, a decrease from 9.7% in the earlier period of 2007-2011. Similarly, transitions to permanent positions in other companies also declined. Conversely, the rate of temporary workers moving to other non-regular jobs nearly tripled.

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If the mega-special zone allows temporary work for four years, it will send a signal to non-semiconductor companies that 'hiring permanent staff is not necessary.'

This trend is particularly concerning for young job seekers. During the initial five years of the act (2007-2011), those who worked for two years as temporary staff had a 26.8% chance of moving into a permanent job. However, in the more recent period (2012-2022), this figure dropped to 11.2%, while the likelihood of moving to another non-regular job increased substantially.

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Extending temporary work contracts in mega-special zones goes against the policy's purpose of creating high-quality jobs in the region.

Experts are raising alarms about the government's proposal to extend the temporary worker contract period to four years within "mega-special zones," such as the planned semiconductor cluster in the southwestern region. They argue this extension could exacerbate the problem, creating more "traps" rather than "bridges" to stable employment. The total number of non-regular workers in South Korea has already surpassed 5 million, and critics fear this policy will further entrench precarious work and widen the lifetime income gap between permanent and non-regular employees.

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The legislative restriction on the use of temporary workers based on reasons is urgently needed, similar to ILO and EU directives.