Moreover, average monthly wages for a manufacturing worker in China are only US$98, compared with US$1,319 in South Korea in 2001, according to data from the Bank of Korea, the central bank.
Concern about labor strife has deepened since President Roh Moo-hyun took office in February on the back of strong support from blue-collar workers and a reform-minded younger generation.
Analysts say the new center-left government has since given too much ground to labor, and Roh, a former labor lawyer, has at times intervened in disputes to ensure union demands are met.
"The government must rethink whether its labor policy is economically rational," Kim said.
Meanwhile, foreign companies at times feel they are being pushed into a corner.
A local unit of the world's largest food group, Nestle SA, locked out staff at its Seoul headquarters on Aug. 25 after two months of labor action. It said a string of wage increases had pushed coffee production costs in South Korea above those in Germany.
Elsewhere, US fiberglass maker Owens Corning narrowly averted closing its factory in the south of the country after a 20-day lockout triggered by labor unrest. Unions accepted a last-minute compromise on working hours and bonuses.
RSS