Hyper-connectivity and the Future of Work: Implications for the Labor Market Reform in South Korea

Abstract

Hyper-connectivity is one of the most remarkable phenomena in the 21st century which is accelerated by two mega trends, technology and globalization. Hyper-connectivity means an extraordinarily high level of connection or the state of beyond connection by means of digital technology. Hyper-connectivity has transformed the way in which people work and the fundamental structure of the labor market as well. It performs not just as a hardware technology, but also as an infrastructure that can strengthen the individual's ability, potential, and bargaining power in the labor market. Based on in-depth interviews with freelancers and experts, this study discovered how hyper-connectivity in the labor market would empower workers, especially those who do not belong to organizations for two aspects. First is a 'web-based job platform' which could augment an individual's capability. The second one is a 'web-based marketplace' in which individual workers could sell their products, services, skills, or know-how to the world market beyond the temporal and spatial boundaries. Also, this study demonstrates the possibility that a technological change could be a solution to get successful labor market reform in South Korea. This study particularly focuses on the dual labor market. South Koreas labor market is distinctly divided into two sectors: one is a primary labor market and the other is a secondary labor market. The gap between the two sectors is large enough to pose problems such as inequality, social conflict, and inefficiency. The South Korean government implemented a variety of policies to address the problem, such as the enactment of Act on the Protection of Fixed-Term and Part-Time Workers (also known as Non-Regular Worker Act) in 2007 and has encouraged the business community to convert their non-regular employees into regular ones. However, such efforts have failed to make any differences. By many standards, the gap has become even wider. Through hyper-connected technological support, non-regular workers such as freelancers and independent contractors are likely to extend their career capabilities and also likely to enlarge their marketplaces. And these mechanisms could lead to the increase in income, expertise in career, and job satisfaction among non-regular workers. This study points out that technological change could be a catalyst for successful labor market reform rather than the government's intentional intervention into the labor market.