KORUS FTA Likely to Impace Korean Labor Market

The free trade agreement (FTA) reached between Korea and the U.S. presents both opportunities and challenges to the Korean labor market. Some worry that a harsh restructuring process will be expected of certain industries. On the other hand, there is also anticipation of increased U.S. investment in Korea and more overseas job opportunities, which will give more choices to Korean job seekers. In particular, the chances for those who have specialized skills to work abroad are expected to increase.

Under the FTA, Korea and the U.S. agreed to discuss ways to allow Korean and American engineers and architects with licenses or certificates to work in each other’s countries.

An agreement will boost opportunities for Koreans to land a job in the U.S., but competition in the Korean job market will intensify since Americans with the same licenses will be allowed to work in Korea.

Korean job seekers should have specialized expertise in their areas to get a competitive edge over their American counterparts. People who already have specialized expertise have greater chances to work in a U.S. company as an experienced worker or in a multinational company in Korea.

Kim Jun-sung, a job expert and a faculty member of Yonsei University, said, “If Korea follows the U.S. employment trend, the Korean job market will consist of those who have specialized expertise and those who don’t. People with expertise will have better chances of getting a job both in Korea and the U.S.”

As the Korea-U.S. FTA is expected to bring more U.S. investment in Korea, there will likely be increased opportunities for Koreans to work in a multinational company. It is necessary for a job seeker who wants to get a job in such a company to have good command of English and required qualifications.

While Korean companies hire employees through job openings before training them, American companies prefer those who can be put to work immediately.

A survey done by the job search site Career showed that 51 percent of respondents working in multinational companies said, “Expertise is the most important thing in getting a job in a multinational company.” Only 6.8 percent of them answered that English proficiency is the most important. Therefore, working as an intern or getting work experience will help one land a job in industry he wants to work in.

Incruit, another job search site, recently recommended new strategies to get a job in the face of the FTA on April 8, saying, “Companies will pay attention not only to people having expertise, but also to those who have a better understanding of local needs.”

The site added, “The U.S. is so vast that economic situations, industrial structure, and corporate culture vary from state to state. Korean companies that wish to enter the market of a particular U.S. state will definitely prefer someone who knows the state better than others.” Therefore, getting updated information about areas of interest is necessary.

The head of Incruit said, “The Korea-U.S. FTA is expected to bring down human resources barriers between the two countries. Specialized expertise and international mindset will be the most important things to adjust to the changing labor market.”

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