Saturday, 4 January 2025

South Korea - The Tiger Strikes (1997) - Part Two

In 1997, the CWI (Committee for a Workers' International) produced a detailed pamphlet reporting from the mass struggles of the South Korean working-class in the winter of 1996/97. With struggle again taking place in South Korea, it seems timely to share the contents of this pamphlet again. 

 Part Two of three posts sharing the contents of the pamphlet on this blog, covering pages 28 to 45, is posted below. Its author was Clare Doyle, writing under the pseudonym 'Ann Cook'. It is essential reading for understanding the history of Korea and the development of the workers' and democracy movements:

CONTRASTS AND CONTRADICTIONS

Combined and uneven

Its 'tiger leap' into the modern world has made South Korea a country of enormous contrasts and contradictions. It has produced some of the most graphic examples of "combined and uneven development" - a phrase used by Leon Trotsky in his "Theory of Permanent Revolution". He was describing a feature of countries like Russia at the turn of the century - 'backward' but with some of the most up-to-date factories in the world. To complete the process of developing the economy and society, he argued, it would be necessary to clear out not only feudal but capitalist and imperialist relations by 'going over' to state ownership and planning. The South Korean economy can no longer be called 'backward', but the speed of its industrialisation has meant many remnants of the old society from which it has emerged have not yet been shed.

As recently as 1960, two-thirds of South Korea's population was engaged in agriculture and just 9% in industry. By 1980, one-third worked on the land and today less than 15%. In 1960 less than one-quarter of its people lived in cities of more than 50,000 inhabitants. Today well over three quarters live in cities of more than 500,000. Only eight countries in the world are more urbanised than South Korea.

Seoul is one of the three largest cities in Asia, alongside Shanghai and Tokyo. Crammed between mountains (which have served as a defence for centuries against the Manchurian invader from the west and the Japanese to the east), these days it is permanently shrouded in a cloud of pollution. Big black cars clog up the "expressways" while the pedlar trundles his wares around in a hand-cart or on the back of a battered motorbike using an upright frame designed in the middle ages. In the centre of the city, ultra-modern skyscrapers tower above wooden shacks and hovels. Prestigious air-conditioned department stores display $1,000 fur coats and French perfumes while teeming bazaars in the narrow streets nearby are full of shoddy goods and pungent smells.

The luxury apartment blocks of Akpujong and other 'new rich' districts contrast starkly with the shanty towns of the urban poor like Nangok or Shihung. Crowded into the cracks and valleys of the hill-sides are whole communities of temporary dwellings – the 'favellahs' or shanty towns that some people say no longer exist. Rows of bright blue 'portaloos' are the only amenities provided by the authorities. Water must be carried from taps nearby. Over the past three decades, millions have been forced to exchange a life of debt and misery in the countryside for some kind of squalid existence in Seoul or the other major cities.

On the coast, vast industrial complexes have almost literally risen from the sea in impressive feats of civil engineering and construction while inland the rice-farmer is endeavouring to scrape a living from his tiny parcel of land using the tools and techniques of his ancestors. Throughout the south of the Korean peninsula, a sophisticated urban middle class, which takes for granted the video and the CD player, the microwave and the mobile telephone, continues to conduct the family and religious rituals of its not-too-distant peasant past. In town or country, women will carry their children strapped to their backs in the traditional manner and can still be seen balancing huge loads on their heads.

Now, economically one of the most advanced countries in the world, South Korea is one of the most backward in terms of human rights. In fact, the brutality of the repression is one of the major contributing factors to its very economic progress! The rulers who have brought South Korea into the 20th century have used the terror methods of the emperors (with a few modern additions) to hold the population in subjection. But docility and compliance have not been the characteristics of the working people of South Korea. On the contrary, they have a proud history of revolt against the cruel impositions of Japanese and US imperialism, military dictatorship and of the giant Korean conglomerates.

This strike has conclusively demonstrated the capacity of the working class to play a leading role in changing society or, as Marx and Engels put it, that of "grave-digger" of the very system that has forced it into being. And the class it confronts seems to have been created ready-made with power and wealth ostentatiously and corruptly concentrated in the hands of a few monopoly-owning 'dynasties' - the founders of the Chaebol and their immediate family.

"Chaebol Economy"

Thirty giant conglomerates dominate the South Korean economy. Their turnover, according to research publicised in an April 1997 Le Monde Diplomatique, is equal to 4/5ths of the country's Gross National Product or GNP. They own more than 40% of all the country's assets in industry, agriculture, commerce and the service sector. Ten of them account for 50% of all exports.

The extent of the concentration of power in the economy is indicated by the fact that just four "Super Chaebol" - Daewoo, Samsung, Hyundai and Lucky Gold Star - have combined sales equal to half of GNP. Daewoo's turnover is now over $52 billion a year (greater than that of other world giants - Unilever and Nestlé). Samsung has 48 principal affiliates, making anything from semi-conductors to loaves of bread and aeroplanes to shirts. It runs insurance and advertising firms and has just gone into car-making. It even has its own chain of cinemas.

Hyundai virtually 'owns' the city of Ulsan - a city with 'metropolitan' status equivalent to that of a province. The company dominates the lives of the more than 700,000 citizens from the cradle to the grave. One-third of all adults work in its ship-building, heavy- and precision-engineering or car factories. Most of what they get in their pay packets will go straight back to Hyundai. It owns the schools, colleges, shops, department stores and hospitals. It builds the apartments and runs the cultural centres and of course has a monopoly of the vehicles on the road. One of its founder's sons - Chung Mong-jun -'represents' Ulsan in the National Assembly.

The grandiose library that overlooks the city was graciously "donated" by Hyundai. Way below, on the shore-line of the East Sea, beyond the ugly blocks of workers' flats, stands "Goliath" - the giant gantry crane, known and loved throughout Korea as a symbol of workers' resistance. In the great shipyard strike of 1989 it was occupied for more than 100 days until a full-scale military operation was mounted from land, sea and air to end the strike.

Out of nothing in no time

Thirty years ago this great industrial city was no more than a fishing village, Indeed, there was no shipbuilding industry in the whole of Korea at that time, no car factories, no microelectronics and no steel industry. Even the Chaebol hardly existed. In 1974 all of them together accounted for no more than 15% of sales. So where did they come from and how did they create their vast empires? They and their achievements were by no means a product of the unfettered working of the capitalist market system. If that were the case, how is it that countries on a par with Korea in 1960 have trailed so far behind and others in the "Third World' have failed totally to emulate its spectacular achievements?

From building no ships in 1973, Hyundai became the world's biggest ship builder. With no knowledge of the industry in 1968, Posco Iron & Steel became the sixth largest steel maker in the world. South Korea has been the fifth largest car-producing country for some time and Daewoo is now aiming to produce two million cars a year world-wide.

Throughout the 1960s and 1970s, industry and manufacturing in South Korea was growing twice as fast as in comparable "middle-income oil importing economies" (World Development Report 1982). Between 1960 and 1970 exports grew at 34% a year. At the beginning of that decade fuels, minerals and metals accounted for 30% of exports; in 1979, one per cent. At the beginning of that period, no machinery or transport equipment was exported; by 1979 they constituted 20% of all exports. By then, other manufactures and clothing accounted for 69%

Designated as a "low income" country by the World Bank in 1960, South Korea had a per capita income of $82. By 1994 it was more than a hundred times that figure and last year GDP per head was $11,910. Even though the mass of the population has not received anything like an equal share of the benefits, the average male in his '20s in South Korea is now a full five inches taller than he would have been in 1962.

Unrepeatable

The very favourable treatment of Korean capitalism by the US and later by Japan is an important factor in its success but one which is also fast turning into its opposite. The combination of circumstances that lies behind the special status given to South Korea cannot be repeated to order in any other country. The balance of forces in world relations has dramatically changed now that nearly all the workers' states based on Stalinist distortions of socialist ideas have collapsed. Even though the 'rogue' regime in Northern Korea remains the 'odd one out' in that it does not seem, up to now, to have been taking the same capitalist road as its neighbours, it is no longer linked to a chain of regimes based on a system that is totally antagonistic to capitalism. Its economy could very rapidly simply implode and be laid open to all sorts of predators.

The regime of Kim Jong-il, son of Kim Il-sung, is reckoned to spend a huge amount of its budget on defence including its nuclear weaponry and regularly threatens military action. But in its severely weakened state it would have difficulty carrying anything out. Southern governments hold regular civil defence drills, with mock air raids etc. probably more as propaganda exercises than out of serious concern for the safety of the population. The threat of invasion is as good an excuse as any for putting patrols of armed soldiers on the streets, organising road blocks and doing identity card checks.

These days, the dire economic situation in the North makes state ownership and planning look much less attractive to workers in the South than it did in the period just after World War II. Then, it meant a rapid development of the considerable natural resources of the area while the capitalist South was floundering. At that time things were quite different in many respects. While not socialist, Stalinism in the Soviet Union and Eastern Europe - one-party dictatorships resting on state ownership and planning - had been strengthened. China was ‘lost’ to imperialism as private ownership of land and industry had been eliminated. A whole number of countries in South East Asia, including Korea, were threatening to follow suit like 'dominoes'. It was undoubtedly in the strategic interests of world capitalism to create a bulwark against the spread of 'communism' in the whole region and to hold the revolutionary working class of Korea in check.

At one stage, the US was pouring in technical and financial aid to the South at the rate of $2.2 billion a year. It kept tens of thousands of troops in the country after the Korean War (and up to the present day). It was party to the establishment of the murderous Park Chung-hee and Chun Doo-hwan military dictatorships in 1961 and 1980 respectively - both of them notorious for crushing in blood uprisings, demonstrations and strikes.

"Communist threat"

The real reason for maintaining this 'presence", was blurted out by President Truman's special advisor, Edwin Pauley, when he warned, "Communism in Korea could get off to a better start than practically anywhere else in the world", A US commander admitted in 1945: "When we came in, we found the communists actually ruling and controlling South Korea". Russian troops had been advancing from the North for some time but a genuinely popular rising was under way. In the brief period between the collapse of the Japanese war effort and the arrival of US troops, workers had begun to take control over their workplaces, to form unions and to take responsibility for management. Peasant unions were organising land take-overs and rice collection, storage and distribution.

Korean communists had built their own party and fought throughout the 1920s and 1930s to organise trade unions in the teeth of atrocious state terror from the Japanese occupiers. Now their movement was coming into its own. But it was not only US imperialism who feared the victory of a workers' and peasants' revolution in the Korean peninsula.

The establishment of genuine socialist democracy in any country and an appeal for workers elsewhere to do the same would have sounded the death knell for the parasitic elite ruling the Soviet Union under Stalin.

Stalinism

Contrary to the much-peddled scare stories about ‘reds under the bed’ plotting revolutions everywhere, the bureaucracy that had usurped power in Moscow on the basis of the revolution being isolated to a backward country, worked through its domination of the "Communist Parties" internationally to prevent workers taking control in society. Notably in China in the 1920s, Spain and France in the 1930s, when there were heroic revolutionary movements, it insisted on treacherous tactics that tied the workers' organisations to the political representatives of its own exploiters – the owners of industry, finance, land.

State-owned, planned economies were established, in post-war Eastern Europe, China and so on, following popular revolts and the virtual 'flight' of capitalism. But, with a heavy involvement of the "Red Army' of the Soviet Union, or in the case of China, its own peasant-based army, from the beginning they were under the tight control of a developing authoritarian bureaucratic elite. Fig-leaf 'coalition' governments were artificially cobbled together. Behind them, a ruthless policy was pursued of physically excluding from power not only what remained of the bourgeoisie but the workers too. Regimes were set up in the image of Moscow's centrally controlled society. In the Soviet Union, Stalin maintained the state terror that he had used to crush all opposition and all the elements of workers' democracy established by the Bolshevik revolution.

Carve-up

Now, in Northern Korea, Stalin was as anxious as the US imperialists to find moderate figures through whom to operate to stem the movement from below. Attempts to set up provisional compromise governments were not faring well. With indecent haste, he agreed with the US generals' proposals to carve-up the Korean Peninsula along the 38th parallel, even though 'communist' and insurgent forces were in control far to the South of it.

A congress in Seoul in September 1945 was attended by approximately one thousand delegates from North and South. A 'Korean People's Republic' was proclaimed. Its programme included the nationalisation of all basic heavy industries, natural resources, means of communication and transportation; the establishment of compulsory primary education and a guarantee of basic human rights, freedom of the press, assembly and religion.

The task of the US War Department, having drawn its line across the body of the country, was to move rapidly to put an end to this uprising and to impose the Syngman Rhee government on South Korea. Moscow was forced to settle for Kim Il-sung in the North. Remaining decidedly in the anti-imperialist camp - retaining state ownership of industry and carrying through rapid collectivisation – he developed a highly personal form of 'Bonapartist' rule. The three main groupings in the 'communist' movement were systematically physically eliminated - first the Korean, then the Yenan (Chinese) returnees, and lastly even the wing most closely allied to Moscow!

Korean War

The Kim Il-sung clique was then in a position to make a push for the South with the idea of extending their own influence and not at all of encouraging genuine independent class action. Imperialism's motives were to defend landlordism and capitalism in the South and to restore it in the North. War became inevitable on the Korean peninsula and broke out in 1950. By 1953 when it ended more than three million Korean civilians had been killed and hundreds of thousands of soldiers. (One million Chinese soldiers also died).

There were many heroic struggles up to and during the Korean War. In each one of them, the leaders would demand the restoration of the people's committees, land redistribution and unification of the country. US forces were still fighting guerrillas throughout South Korea until well into 1952. Their actions were combined with wave upon wave of mass political executions carried out under the orders of their puppet, Syngman Rhee. Over 100,000 were rounded up and slaughtered in the immediate period after the US presence had restored him to power for a second 'term' in 1950. (This campaign alone eliminated more people than the US claimed to have been murdered by 'communists' North and South during the whole war).

No organised left political forces remained in the South at the end of the Korean War. Yet, before long, as if rising from the ashes, there were once again powerful movements of workers and students for "unification of the country and socialism'. They could only be contained by the heaviest of state repression and the American presence.

In his authoritative book, 'Rush to Development", Martin Hart-Landsberg explains: "Rule by military dictatorship was a logical consequence of the illegitimacy of the entire US project to create a separate South Korea; it could be saved in no other way". But he goes on to show how the building of Korea's modern industries did not figure in the plans of American imperialism but was the deliberate decision of a military caste determined to grow rich on the proceeds. Quite cynically and methodically it would use its 'special (favoured ) status' to build the basis for becoming independent of its 'sponsors'. Opting for the capitalist road, it would literally have to create a capitalist class to fill the vacuum that existed after the collapse of Japanese imperialism and the end of 40 years' foreign domination in every sphere of life.

Theories on trial

Spectacular results were achieved, effectively on the basis of the defeat of the Korean revolution. Do they disprove the theory that isolated, underdeveloped countries cannot "catch up" with advanced industrial economies in terms of technique and productive capacity except on the basis of a state-owned, planned economy?

Special factors obviously prompted the largest imperialist power to set aside considerable resources to build its defences in that region and, in the process, develop the country to some extent. The special trading concessions, the big expansion into Korea of Japanese capitalism and even the land reforms pushed through under US tutelage to stave off peasant uprisings went a long way towards making South Korea an exception that proves the rule. But it is now widely accepted, and confirmed again in a March 1997 'Policy Review published in London by the 'Overseas Development Institute', that the single most important factor behind South Korea's 'miraculous' development (and, to some extent that of the other "Asian Tigers') was, after all, the state.

Although located firmly in the camp of capitalist nations, with a developed and very concentrated class of owners, the 'Chaebol economy' was by no means an example of unregulated laissez faire capitalism. On the contrary, there was here an exceptional involvement of the state in every aspect of economic as well as social life. The bourgeois state was even prepared to sacrifice some of "its own" when necessary and limit the freedom of the Chaebol themselves in order to keep the whole show on the road.

Interestingly enough, when the military took over in 1961, a group of colonels is said to have looked at the parlous state of the economy - especially compared to that of the North, which was going ahead – and developed a draft plan based on state ownership and principles of self-reliance. It was shredded for fear of US disapproval! Nevertheless, the Five Year Plans adopted by the military regimes and the targeting of investment in heavy industries achieved results through using methods strongly resembling those of the bureaucratically-run, state-owned economies of the Stalinist camp. In the early 1970s, 12 of the country's 16 largest firms were actually state-owned and, ignoring Western advice and risking US ire, the Park regime used the state-owned banks to direct loans into six totally new industries - petrochemicals, electronics, iron and steel, machinery, ships, and other transport equipment.

State-dominated capitalism

But, although it was possible to subsidise whole sectors of the economy while they got started, or even when they faltered, it was always on the basis of either quite brutally penalising other sectors or by overdrawing on both domestic and foreign finances. However state-dominated, it was impossible for the Chaebol economy to escape the scourges of a system based on private profit. The headlong drive for expansion at all costs actually aggravates the crises. It ends up with productive capacity considerably in excess of actual demand - domestic or international. Workers within the country cannot buy back the products of their labour, since the bosses hold their wages so far below the value they create. A country that depends so much on trade is highly vulnerable when those crises occur elsewhere in the capitalist world but also when unfavourable changes in the prices of raw materials and of manufactured products result, precisely from the ruinous 'free play of market forces'.

Although not suffering as seriously the periodic crises that afflicted other capitalist countries in the 1970s and 1980s, South Korea was not immune to 'cyclical' dips in growth rates. Now it faces actual recession caused by the vagaries of the market - domestic as well as international. By continuing to pay appallingly low wages and putting precious little into welfare spending, Korean capitalism has severely restricted demand at home. Wages in the newer industries with large workforces have increased dramatically in the past ten years – about 150%. This is not some automatic result of the 'globalisation' process but of bitter and persistent struggle on the part of the newly organised workers in these industries. The majority of Koreans work in low-paid service jobs. At least five million are not on any payroll and 2 million work on the land.

Producing for the foreign market, therefore, while consuming vast amounts of 'start-up' capital, has nevertheless been the quickest way for 'Korea Inc.' to make its profits. Exports increased by 800% in 30 years. But the heavy dependence on selling abroad to fuel the dazzling growth rates has built another fatal flaw into the foundations of the economy. It has made it particularly vulnerable to the effects of down-turns in other parts of the capitalist world. It is also highly susceptible to fluctuations in markets and prices. South Korea controls 35% of the world memory chip market but last year the world price of a 'direct random-access memory' (DRAM) semi-conductor fell drastically to $8 from $84 a year before.

South Korean capitalism, far from enjoying a privileged status in its dealings with the USA and Japan, now suffers from aggressive protectionist measures on the part of its trading 'partners'. They retaliate against cheap goods with anti-'dumping' rules. It suffers adverse effects when the Japanese yen falls against the dollar, increasing the competitive edge of Japanese products – including cars and ships - in the USA and elsewhere. Also, as the second biggest recipient of exports from Australia, South Korea pays heavily when the government in Canberra moves to strengthen its currency.

Even the features in the South Korean economy that bear an outward resemblance to those of a Stalinist state have turned from being advantages to disadvantages. As there, the emphasis on quantity rather than quality has led to an inability to adapt to, and develop, new technology. This problem is compounded in Korea by the fact that much of its "miracle" growth was due to the use of Japanese technology borrowed under contract. Now that Japan sees South Korea as a rival rather than an offshore production base for its own firms, these contracts are not being renewed. The big firms are now either having to drive into the 'lower quality' markets of South and Central America, Eastern Europe, China and Asia or invest vast sums to develop their own technology ... or both.

Overblown

All the strengths of the 'special' breed of capitalism that developed so rapidly in this South East Asian peninsula are now turning into its weaknesses and the giant conglomerates are themselves spreading into the global economy. Pressures are being exerted from foreign capital to lift the thousands of obstructive regulations and the blatantly protectionist measures operated by the state. The fact that the Chaebol's rapid expansion has been based on loans rather than investment has also been a double-edged sword. Most firms have borrowed at least three times more than their asset value and some to a far greater extent. In the case of Hanbo, the 14th largest Chaebol that collapsed in January, it was 20 times. Sammi Steel has also collapsed under its debt burden and other conglomerates are said to be dangerously overblown.

The state itself has the second biggest national debt after the US of $104 billion. The lack of resources put into research and development and the absence of a 'home-grown' machine tool industry has meant Korean capitalism has had to pay for its spectacular export record with a spectacular level of imports of energy (40%), capital goods and components. In 1995 imports increased by 32% in one year to a total of $144billion.

It is a myth that the special status of South Korea meant massive investment from abroad in capital goods development. Most of the money put into Korea in the post-war period was in the form of 'aid' (including military) and loans. In addition, there were special foreign exchange and trade terms which gave South Korean goods disproportionate access particularly to US and Japanese markets. Now that world relations have changed, following the collapse of the state-owned planned economies, US and Japanese governments no longer need to bolster the South Korean economy.

In fact, for some years now, they have come to regard South Korea as a dangerous competitor on the world market. As well as the removal of the strategic reasons for propping up Korean capitalism, the slow-down in world trade and the difficulties experienced by most capitalist economies has intensified competition.

The US has for a long time been engineering more and more trade disputes, even before general hostilities in the 'Cold War' ceased. Japan has stepped up the withdrawal of its technical 'know-how'. The Frankenstein's monster they had helped to nurture had developed too many of the attributes of its creators - an appetite for profits, an ability to compete and an awkward propensity to try and defend its own interests. Tight monetary policies aimed at cooling the over-heating economies of China, Malaysia and Thailand also hit trade with South Korea.

Protection racket

The state's protection of the Chaebol conglomerates is another double-edged sword. When they are in favour with the ruling party, they can expand and prosper far beyond their 'natural' limits. But when they fall out of favour, they can be broken or, at best, severely weakened for a whole period.

In 1984 the founder/ owner of the Kukje-ICC group made the mistake of only donating $400,000 to the ‘New Village’ movement of dictator Chun Doo-hwan, when the other large Chaebol-owners had been persuaded to give over $1 million. The empire was brought crashing down and its component parts redistributed to all the better-behaved conglomerates. Only later (after the General was murdered by the CIA and a new dictator came to power), did the owning family's fortunes revive. The company reassembled and regained at least some of its former position.

Hanbo, on the other hand, even after its collapse, continues to receive vast handouts. A government that wants to see the completion of its prestigious new Tonjin steel mill is busily constructing feeder road and rail links to the 'green field' site. All the pieces of this broken conglomerate are being picked up by other Chaebol predators in the field (and even some not yet in that particular field). The government bailed out the now private banks affected to the tune of $7.1 billion, thus dramatically inflating its already massive budget deficit.

While formally freeing trade and opening up to foreign goods, the South Korean government is desperately trying to hold the lid on imports. The latest moral crusade against "luxury" goods has angered the US Trade Department which suspects it is aimed at protecting domestic producers. But now that more of Korea's exports go to Asian countries than to the United States, the slowing down in the economies of all these countries is heightening tensions between them - including with China which was on its way to taking more South Korean exports than the US. (In the period 1987-94 exports to Asia increased by four and a half times to $25.8billion, to the US 12% to $20.5 billion and to China 38 times to $8 billion. In 1996, exports to the United States fell to just over $10billion).

Problems

In 1995 exports to developed countries were still growing - at a rate of 28%. A year later they were down by more than 8%. Semi-conductors account for 20% of South Korea's exports. Last year sales of them abroad fell a dramatic 44%. There was also a substantial decrease in sales of chemicals and steel and a poor performance in most other fields. Domestic demand for electrical home appliances was also down and, according to 'Economic Report', heavy industry and chemicals were "anaemic" and over-capacity was now afflicting whole swathes of the economy. All this spells disaster for "Korea Inc." The country's trading deficit has doubled in the past year. At $23.7 billion it is the second highest in the world.

The National Debt has gone over the $100 billion which, as 'Business Koren' noted, was double what it was at the time of Kim Young-sam's inauguration in1993. Now, according to the government's own estimates, it could reach $144 billion by the end of 1997. Interest and repayments on it cost $10.1 billion per annum - interest alone amounting to nearly 13% of the national budget. Offshore borrowing costs $7 billion in interest. Foreign direct investment, which has always been a small proportion of total investment, is actually declining from a high point of no more than $1.5 billion. South Korea ranks second only to India for discrimination against foreign investment according to the Hong Kong based 'Political and Economic Risk Consultancy'.

Investment by the top 200 Korean companies was expected to fall in absolute terms this year when only two years ago it was increasing at a rate of 47%. Meanwhile, these same firms have been doubling their own overseas direct investment and in the case of 'information and communications' and 'machinery', trebling and quadrupling it.

In the field of labour-intensive production like clothes and shoes, some South Korean firms (and some famous American and Japanese 'names' previously operating in South Korea) have moved to lower wage economies in the region and elsewhere. Capital-intensive industries regard easier access to markets as a more important consideration. Although cars form a substantial share of South Korea's exports, they still represent only 1.9% of total sales in Europe. Companies like Daewoo are looking for ways of getting into that market. If they set up factories in Europe itself, they not only get round the EU external trade barriers but bring down the cost of transporting the final product to its destination. Even where wages are higher than in Korea, these other considerations can be more important in the investment decisions of the Chaebol.

SOUTH KOREA'S "SECRET"

The world's press has made great play of the massive rise in wages in South Korea over the past ten years, particularly in the metal-working and engineering industries - 15% per annum on average. The unions began to take advantage of the late 1980s boom and organised to pull themselves out of their 'Third World' conditions.

But a Daewoo workers' leader at the KCTU's February conference indicated what has been perhaps the biggest secret of Korea's "miracle". Even after ten years of struggle and improvements, it is still South Korea's workers who pay the biggest price to keep it going.

He spoke of the 12-hour shifts, six days a week. He pointed to every part of his body to indicate the muscles and limbs that have "gone" by the age of 40. He spoke of the super-profits and the arrogance of the bosses that made his blood boil. This is what lies behind the Korean workers' anger that reached breaking point at the end of last year. At this delegate's factory in Bupyong, 92% had voted for strike action and every one of the more than 10,000 workers had been out solid.

If South Korean capitalism came near to the highest levels of growth in history, it still depends more on the intensive exploitation of its workers than on the latest developments in equipment for helping them do their job. The average South Korean works with only two-fifths the amount of capital available to his American counterpart and even in the modern car factories, has much less equipment at his elbow.

The well-named 'evil' laws pushed through parliament, show that the South Korean bosses intend to keep things that way. The whole burden of the government's propaganda has been that the economy demands sacrifices as the growth rate falls yet further. In 1995 it was 9% per annum, in 1996 it was 6.8% and in 1997 heading for 5% or less. (One journal makes out that 4% would actually mean entering a period of nil or "negative" growth, i.e. an actual decline.)

Dream or nightmare?

For the majority of workers, the "dream" is easily explained; for them it has been a nightmare. In terms of the way South Korean capitalism treats its workers it is a long way from 'catching up' with the far-from-adequate standards of its fellow OECD member-states. In fact, figures indicate the opposite. The 1995 International Labour Organisation (ILO) in its Year Book, for example, shows that workers in South Korea work longer hours than in 61 out of the 68 countries it reviewed. Only countries like Indonesia, Sri Lanka, Taiwan have a worse record.

A leader of Seoul's subway workers, at a KCTU demonstration on 2nd February beside the Central Station explained why his members are in the "vanguard of the movement" as he puts it:

"Day shifts are ten hours; nights 14 with some of the most gruelling shift patterns imaginable - two days, two nights, two days, one night, rotation day, holiday and back to the beginning again ... In 1994 we led a struggle against the government's wage freeze and suffered police action worse than under the military. It is still illegal for us in the public sector to strike. Forty-six of the activists were arrested and 16 'did time'. Nearly 3000 were victimised in some way by management and over 100 were sacked. Leaders of the union staged a week-long hunger strike at Myong Dong. Some of the (subway) lines are organised by the FKTU and that complicates our struggle. But we will not see our union crushed. We aim to stay in the front ranks."

Women workers

Women workers, who were to the fore in establishing the democratic unions in the 1970s, now find themselves thrown out of industries with large workforces (some of which, such as textiles, have declined drastically). Two-thirds now work where there are fewer than five employees and are thus not covered even by the inadequate protection afforded by law. Many toil long hours in the sprawling jungle of the service sector (twice the size of manufacturing) - in the markets or hotels, in hairdressing or secretarial jobs. Over one million are said to work in the "sex industry", forced there by poverty and the lack of real job opportunities. Most companies violate the equal employment laws (even 38% of the larger enterprises - over 300 employees). Discrimination is particularly fierce against married women. In manufacturing, they are mostly confined to unskilled, unhealthy and grossly underpaid assembly work. Hundreds of thousands will bend to a sewing machine all day either in the 'seclusion' of their own homes or in vast death-trap rabbit warrens like the 'Peace Market' with each room run by a sub-contractor in hock to the big monopolies.

In the "industrialised" world, only in Japan do women get paid a smaller proportion of men's income than in South Korea. There it is a mere 44%; in South Korea 52% on average. The old peasant attitude persists of regarding females as literally worth less than males. (This is the reason behind the practice continued to the present day of aborting foetuses 'diagnosed' as female - in the past by the village soothsayer, today by an electronic scan). They are discriminated against at school, at work and in society.

Gains previously fought for are being undermined, including one day a month menstruation leave. Creches are compulsory only at workplaces with more than 500 employees i.e. very few. Women face higher unemployment levels, almost minimal job security plus sexual harassment at work and even on the picket line. Apart from making undue super- profits for the rich, Korea's working women are expected to continue with all kinds of "traditional" domestic drudgery and suffer untold levels of domestic violence (against which no legal protection yet exists).

Housing, Education, Health ...

Housing for ordinary workers' families is appallingly inadequate. Many have 'graduated' from the shanty towns to little more than garage extensions on someone else's property. Workers' flats often consist of one room for a whole family.

Though far fewer than in the '70s, tens of thousands still live a 'cat and mouse' existence in shacks they build for themselves on the outskirts of the cities. The bulldozers can move in at any moment to clear the way for 'developers'. On many occasions they have been accompanied by armed thugs and sometimes whole divisions of riot police to break up the mass protests of the dispossessed. Promises of new homes in the blocks that mushroom out of the wasteland are never fulfilled. A 'Korea Herald' editorial in January characterised the government's attempts to control speculation as like "applying insecticide after the locusts have already devoured the crops - the real estate agents and investors move with such agility."

Rents can take half a worker's wages. There is no such thing as the welfare state in South Korea. Much of children's schooling and a large proportion of medical care must be paid for. The cost of education for one child of secondary age is put at around 300,000 won per month. This is more than the statutory minimum wage and about the same amount as unemployment benefit which, is only available for ex-employees of large firms -1.6 % of the total.

Although the general level of unemployment is around 2%, one in ten 15-19 year-olds is unemployed (and without benefit) and 9% of 20-24 year-olds. A larger proportion of South Korea's young people go on to further education than in the US - 24% - but at the cost of great sacrifice made by their parents. A poor farmer will struggle for years to invest in a cow that he can sell for two million won the day his child gets accepted for university.

Medical insurance and health and safety provisions at work are totally inadequate. A number of doctors, dedicated to transform the situation, have played an important part in the workers' and democracy movement. One of them, Yang Kil-seung, indicated why:

"When you see the situation in the factories, it's just like that's described in the old books of Engels. You know it shouldn't be that way. You ask workers to join the union and make some kind of action together to change it ... That's what we did in the 1980s. Our group's name was 'Action for Workers' Health and Safety. We would report occupational disease cases and develop organisations amongst victims or people who had been injured in industrial accidents but not compensated or properly treated. There are plenty of them. They lose their fingers, hands, arms and legs. There are factory inspectors ... about 300 in all of the country. So one guy has to look into more than 500 workplaces in a year. In this area, there are masses of small workshops. We often see bad cuts, lacerations, penetrations from the drilling machines and presses. 75% of press machines are operated illegally, so how can you punish them? It's 75%, not 5%! In big industries the situation is changing a bit - because of the unions - but without unions there is no protection. You only get 70% of the basic wage, which is less than half of the normal salary, for accidents and then only if the company doesn't wriggle out of it, cover it up. But if someone is off work ill, they get either very little or nothing, depending on the size of the firm. They have to pay a large part of their treatment, even if they are covered by insurance. In small firms, there is no cover. I was called in to inspect the incidence of occupational disease in a large shipyard. The year before - the worst year - medical reports showed 20 victims. The very next year, when I was invited to check if the medical exam was done correctly or not, they reported 220. And then I added 65 more after reviewing the documents. They were nearly all pneumoconiosis and hearing loss problems. I think this year we can go even further - on organic solvent poisoning."

The day Yang Kil-seung recorded these comments he received a fax at his surgery asking about liver cancer occurring among people working with PVC (polyvinyl chloride).

"This is already well known in European countries and America but this seems to be the first found case in Korea. It's at a chemical plant in the Kunjan area in the South West, owned by Hang Hia - a recently emerged Chaebol. 30 of the 60 workers have to boil the PVC materials in a tank and go inside it to clean it every time it is emptied. The government (which runs the workers' compensation insurance) has said they cannot pay for the cost of the medical treatment since the disease is not recognised. So they are being treated by the general health insurance, which they pay themselves. Such cases are only just coming to light in these "developing' countries."

Another highly respected 'democratic' medical practitioner is Kim Rokho, taken to court for "interference with business" when he took his place each day on the picket line at Wonjin Rayon. Workers there had been stricken with a lethal industrial disease caused by carbon disulphide poisoning and were demanding compensation. Getting no response from the heartless management, they took the desperate step of keeping the coffin of one of their fellow sufferers with them at the gates of the factory for nearly 20 weeks. They were victorious in 1993 and the company was forced to close but the work of the campaigners continues as does the court case. This doctor is also known throughout the movement for the clinic/ hospital he set up to help workers who cannot afford treatment and to care for victims of police torture.

Immigrant workers

Other activists have taken up the desperate plight of 'migrant workers'. In the long years of growth with very little unemployment, the South Korean government has made periodic appeals for foreign workers to come to South Korea. The most recent was for 60,000 and there are an estimated 150,000 in the country. They came from Nepal, the Philippines, Pakistan and Indonesia - many in the hope of remitting at least a creditable amount home to their families, In the majority of cases, they have found themselves totally without rights and even without the most basic provision of shelter. Some have been 'housed' in container lorries. Many regularly do not receive even the meagre wages due to them.

Harsh Reality

All this and much more constitutes the harsh reality of South Korean capitalism's fairy-tale success. Now that it faces a dramatic slow-down, the country's working class knows what is in store. The struggles of the late 1980s took place in the fattest years of South Korea's development; the lean years promise a long, hard struggle.

But struggle is a way of life for the Korean working class and especially for its activists. The 1996-97 great strike, the first since the second half of the 1940s, may have taken the world by surprise, but it had been a long time in the making. The first truly 'general' strike, it had been preceded not only by a vigorous and lengthy campaign against the changes to the Labour law, but by decades of struggle to establish independent and fighting trade unions.

Fighters and collaborators

The origins of both the KCTU and the FKTU can be traced back at least to the revolutionary period at the end of the second world war when capitalism in Korea was fighting for survival.

According to the KCTU's own account, when the independent 'Korea National Council of Trade Unions' was formed in November 1945, it "supported revolutionary socialists" and put forward the demand to the American military administration that "complete control be allowed by the workers' factory committees over enterprises formerly owned by the Japanese and pro-Japanese Koreans". It played an important role in the great September strike of 1946, followed by the March strike of 1947, and the one-day general strikes of February and May 1948.

The Korean Labour Federation for Independence, on the other hand, a forerunner of the FKTU, was set up in 1946 with the aim not of liberating but of controlling the working class - a tool of the bosses. It loudly declared its total hostility to socialism and actively promoted co-operation between labour and management. In this it had the full backing of the government, the bosses and the American military up to and during the Korean war of 1950-53. Everything was done in this period to stem the tide of popular uprising and a take-over of society by the Korean working class.

Such was the force of the movement from below that this devastating war would never have been inflicted on the people of Korea if they had been left to decide their own fate. Bruce Cummings and Jon Halliday in their book ‘Korea: The Unknown War’ maintain that without US intervention, there would have been a "revolutionary transformation of society". Large elements of workers' direct democracy had no doubt been established throughout the South, often before the Northern army arrived. Whether the "communists" of North Korea, the USSR or China would have succeeded in imposing their bureaucratic model is another question. But the intervention of US imperialism and, during the Korean War, soldiers from 16 other capitalist countries under the flag of the United Nations, caused the atrocious carnage that has left a legacy of hatred against imperialism.

During the Korean War, there were heroic strikes by textile workers, miners and dock-workers. The latter attempted to boycott the transport of military supplies. The struggle for free and democratic trade unions continued unabated throughout the long harsh years of the Syngman Rhee regime. In 1956, two million votes were given to a candidate standing for socialist democracy and a planned economy - Cho Pong-am. Two years later, Rhee had him executed for "collaboration with North Korea". Then, on the pretext of imminent invasion, he moved to push 22 bills through parliament including revision of the National Security law. He had all opposition parliamentarians removed from the Assembly by police trained in the martial arts. When in 1960 he was seen to use ballot rigging and sheer terror tactics to prevent the re-election of an opposition vice-president Chang Myon, students poured onto the streets in protest. The police turned on them with live ammunition, killing over 100. This only drove them to more protest action and brought others into the movement. When martial law was declared, the Korean army refused to fire on the students, many of whom demonstrated under the slogan "Democracy in Politics and Equality in the Economy".

The "April (students') Revolution" of 1960 gave enormous impetus to the struggle for fighting workplace organisations. In the ten months after Rhee was forced into exile there were around 2,000 street demonstrations involving a million people. Cho Pong-am's Progressive Party became the Socialist Mass Party and joined forces with student, trade union and other organisations to demand the establishment of ties with the North and elections to re-unify the country. Early in 1961, the students again took the lead and mobilised support for a conference of delegates from North and South. Just four days before it was due to take place, a group of army officers under Major General Park Chung-hee, with the blessing of Washington, carried through a coup d'etat, and the labour movement was once again crushed.

The Korea Labour and Society Institute (KLSI) in a history of the trade union movement explains how, after being disbanded along with all political parties and socialist groups, the unions went through a process of "dissolution, reorganisation and expansion" in the 1960s and 1970s. They were re-established from the top only by orders of the military in 1961 through its Union Reorganisation Committee. The FKTU was the result and was paidfor by the American CIA.

Thus formed, in the words of the KLSI, it "fell down completely" in its obligations to the working class of Korea. It openly collaborated with the repression carried out by Park and the military. It has never been forgiven. Bitter feelings towards what was known in the movement as this "yellow dog" union federation persist today and have been sustained by the 'lesser' crimes of the more recent period. In 1987, its leaders swore a loyalty oath to the military dictatorship. It regularly receives financial assistance from the government of Kim Young-sam (of up to $7 billion per annum). When South Korea was accepted into the OECD, it participated in a government delegation to the ILO, white-washing the state's use of the military against (KCTU) strikers.

The whole period of the 1960s, '70s and '80s was characterised by an unending round of struggle and repression - more struggle meant more repression, more repression meant more struggle. Compressed into three decades were processes which had developed over three centuries in the world's first industrialised nation - Britain. As in all countries in the early days of capitalism, industrialisation was producing an ever-growing army of wage-slaves. Their cruel treatment at the hands of the factory-owners would push them into 'combining' together for protection. Every attempt would be persecuted, driven underground into 'secret societies' and labelled as 'conspiracies' against the state itself.

The first unions would have difficulty getting beyond the factory level before they were crushed. But the harshness of conditions would send workers again and again down the path of organising until, at last, powerful regional and national bodies could be formed. As soon as the pace of industrialisation quickened, the labour disputes multiplied. There were just 95 in 1959 and by the very next year, 227. In October of 1961, 100,000 workers were organised into trade unions. Ten years later, half a million and by 1979, the year of Park's assassination, more than one million.

Kwangju

In 1980 came the most horrific event of recent South Korean history - the drowning in blood of a popular uprising in Cholla Province. In revolt against the imposition of yet another dictatorship - that of General Chun Doo-hwan - and its brutal treatment of protesting students, the people of Kwangju rose up and took control of their city. They were disciplined, peaceful but armed. Local miners supplied dynamite from the pits as an extra defence against the paratroopers who had gone in and run amok. For days the "Commune" held out against the forces of the state. Then, on May 27th, with the total collusion of US 'advisers', acting in consultation with Washington, Chun Doo-hwan ordered in the 20th Division of the army that proceeded to inflict the most horrible terror and carnage. In total, well over 2,000 men, women and children were slaughtered in the crushing of the 'Commune' and 15,000 more maimed - some mutilated in the most barbarous fashion.

The atrocity would never be forgotten or forgiven. In its aftermath, the military moved in a pre-emptive strike against the labour movement. The leaders of both trade union federations were removed by edict from their posts. Thousands of local union branches were dissolved and union officers sacked, arrested and sent to military-run "education camps". From then on no federations or industrial unions were permitted by law; only workplace or company unions were allowed and then only one on any site.

Once more, however, the workers of South Korea showed they would not be cowed. Within a matter of years - by 1984 - an economic slow-down had given way to a new upturn in the economy. There was a corresponding upturn in the workers' movement. New struggles arose - for wage increases, improvements in working conditions, the establishment of independent unions and for the democratisation of the government/company unions. But, constantly harassed and persecuted by the state, it would still be more than ten years before the founding of the present-day KCTU.

The Korean workers have fought, been crushed, regrouped and fought again. They have demonstrated with particular courage and tenacity that iron law of capitalist society - that workers will not cease their struggle to throw off the yoke of capitalist exploitation. They have their pioneers and martyrs like the worker-hero Chun Tae-il and the women of Dong-il Textiles who fought long and hard against a ruthless employer, the forces of the state and the leaders of their own FKTU union. The movement will have its ebbs and flows. There will be defeats, pauses and victories all contributing to the emergence of powerful workers' organisations.

The students, too, had their pioneers and martyrs: Kim Sang-jin in the 1970s and Cho Sung-man, Park Jong-chol and Lee Han-yol in the 1980s - all of whom paid with their lives in a struggle to rid society of dictators and imperialist domination. Coming from the more privileged sections of society, students were nevertheless deeply affected by what they saw around them. That and their own experiences at the hands of the state machine convinced them of the ideas of class struggle and socialism. They would go to the countryside or into the workshops to share the life of the factory worker or the village labourer in the manner of the Narodniks in Russia at the end of the last century. They would agitate, educate, and organise and end up in jail. There, their understanding of Marxism was deepened. As so often happens, the prisons of the dictators become the universities of socialism.

Some of the most poignant and best-loved 'struggle songs' were written by the widely known composer Kim Ho-chul. He had first hand experience of how the regime treated its 'dissident elements' in the 1980s:

"We were constantly being arrested and kept for months without anyone being informed of where we were. And always the torture. It comes back to you. At night you remember. One time I was tied up like a chicken with leather belts and suspended from the ceiling. They would pour hot peppery sauce down your nose. You could only retch. You thought it would never stop and you would not survive ... When you came out you looked for your friends. Some turned up, some have still not turned up and some will never turn up".

The Great Struggle

But then came 1987 and "The Great Struggle" that welled up from below. It started first among the students, angered by the death of yet another of their comrades at the hands of the hated secret police. It spread like wildfire. Every layer of society thronged onto the demonstrations in their millions, demanding democracy and an end to dictatorship. South Korea's fabulous economic growth had not only been produced on the backs of the working class. The middle layers in society had felt little of the gains and resented the lack of basic freedoms. Even the stockbrokers joined the demonstrations.

For weeks the whole nation seemed to be on the streets. There were battles and injuries, mass arrests and even another death at the hands of the 'Security' police, but the regime was now fighting for its life. In some instances young soldiers came over to the side of the movement, sick of the way they were treated in Chun's army. After 40 years of military rule, with hardly a moment's respite, it seemed as if a whole era was coming to an end.

Day after day, the students were on the demonstrations, often joined by workers and sometimes actually over-powering the hated riot police. The movement was essentially aimed at ending dictatorship and establishing the basic democratic rights that all bourgeois revolutions have inscribed on their banner - freedom of speech, assembly, press and organisation. Not only were the days of the dictators numbered but the longer the battle continued, the more attractive became the idea of doing away with the very system they protected. It was clear that in the hot-house conditions of the Great Struggle the ideas of socialism were coming to the fore.

General Chun Doo-hwan was forced to accept standing down in favour of civilian rule. From the point of view of the bourgeois, democracy is anyway preferable and cheaper. Chun's successor, Roh Tae Woo - unlike the joint leaders of the opposition party, Kim Young-sam and Kim Dae Jung - had no democratic 'credentials', He had in fact been an accomplice of Chun Doo-hwan's in the bloody suppression of the "Kwangju Commune". Nevertheless, circumstances obliged him to come out with elaborate promises to change the old order - direct elections, freedom of the press, the release of all political prisoners, the restoration of civil liberties, an attack on corruption and the reform of education and local government. As before, faced with revolution, the ruling class preferred reform.

Impetus to workers' movement

The forces of the state had been humiliated but the rule of capital survived. Without its complete eradication, these basic rights could not be guaranteed. Illusions would persist in the power of democracy to solve the myriad problems in society, but many would now see socialism as the only alternative. The Marxists of the Committee for a Workers' International predicted in the summer of 1987, in the Militant International Review, that the Korean workers would rapidly 'enter the fray' and make use of this period, striving once again to create powerful weapons for their own battles – democratic fighting unions and parties to represent their class interests.

The enormous access of confidence is reflected in the figures. The number of company level unions increased by three times from 1987 to 1993 reaching a total of 7,147 with a membership of nearly two million. The number of organised workers rose in the first half of 1987 by 2.5% but by December was up by 49.6% and again in 1988 by 50.2%. The number of strikes rose from 276 in 1986 to 3,749 in 1987. In the two years after the Great Struggle they were at the level of 1,878 and 1,616. Nominal wages grew by 25% in 1989.

The success of the struggles on pay, hours, holidays etc, in the context of a still booming South Korean economy, helped forge a broader movement. Disregarding the strictures of the labour law, worker-militants formed regional, industrial and national trade union bodies. These developments were matched on the political plane with intense activity in the underground - much of it based on socialist teachings - and in attempts to overcome the numerous obstacles to standing candidates of the working class in elections and building a workers' party.

In the presidential elections of 1988 and again in1992, a revered veteran of the Labour movement, Pack Ki-wan, stood as the candidate of a "Progressive Party". He was known as a socialist, but did not use the term in his campaigns for legal reasons. (After the collapse of the planned economies in Eastern Europe and elsewhere, like many other activists in the movement, he questioned the viability of socialism). Perhaps as a reaction against dogmatism, Pack Ki-wan's party was a broad coalition of diverse elements that put forward a 100 point programme. Politically limited, excluded from the media and generally hampered by the state, it failed to gather even the 3% of the popular vote needed by law to stay in existence after the elections and was dissolved.

In Assembly elections last year, the KCTU found ways of ensuring there were some independent candidates standing although they had no right by law to be involved in politics. They faced the very real obstacles of blatant official discrimination, lack of resources and outright fear on the part of the electorate of the consequences of voting 'left'. The 1996-97 strike has dispelled much of this fear and cut across the deeply ingrained regionalism that has bedevilled Korean politics. The new situation could give quite different results. But a great deal depends on programme and on being seen as the best fighters and as those who have an answer for every problem confronted by workers at home as well as at the workplace.

The programme of a workers' candidate should obviously take up the demands for an 8-hour working day, a living wage and jobs for all. It would link them to the need to take over the Chaebol and run industry and the banks according to the wishes of the population expressed through elected representatives at all levels. Elections in other countries show that candidates pledging to live on a workers' wage and to have all their expenses controlled by representatives of the movement are extremely popular. If they have led mass struggles and scored major victories, they stand an even better chance of getting a respectable vote. There is no point in standing candidates just for the sake of getting some individuals into parliament but the elections and the assembly debates themselves can provide a forum in which the voice of the worker can be heard.

Independent unions

In the late 1980's and early 1990s, a period of turbulent battles with the employers and with the state, the independent democratic trade union movement established itself as a powerful force for change. 1988 saw the formation of a 'National Headquarters for Labour Law Reform' and 1989 the 'National Council of Regional and Industrial Trade Unions'. That year, it held a nationwide May Day rally - the first one since 1945 when liberation from Japanese rule was celebrated by the Korean working class in its own stylish manner.

After 1987, unionisation had proceeded rapidly in previously unorganised sectors such as the press, hospitals, construction, research institutes, schools, business associations, servicing and retailing. The newly established unions in the giant factories of Daewoo, Hyundai, Kia etc. increased their strength by coming together on a company level. Rejecting the FKTU as a totally undemocratic and collaborationist federation, they formed their own regional councils and then a 'National Council' which reorganised to become the mainly blue-collar KTUC (Korean Trade Union Council). Encouraged by the success of long-running strike battles at Hyundai, KBS and other workplaces, it flexed its muscles by calling national action of all its members.

In May of 1990, a federation of the (non-FKTU) white-collar unions was established - the KCIIF. Technicians, clerical and financial workers, college employees had set up their own independent federations. Industrial Councils were set up by printing workers, foreign company workers, building maintenance workers and university lecturers. A slightly earlier attempt in 1990 to set up a Solidarity Council of large enterprise trade unions had met with vicious government repression. In 1991 anger erupted at the death in prison of a trade union leader from Hanjin Heavy Industry and the killing by riot police of a student activist with two months of strikes and protests in May and June.

But one initiative stubbornly followed another to bring the white-collar and blue-collar federations together to build an organisation to rival the yellow FKTU. In 1992, a year of struggle against the wage system, the KCIIF and the KTUC came together in a "Joint Committee for Ratification of ILO Basic Conventions and Labour Law Reform". In all of the five years that Roh Tae-woo had been in power, promise after promise on trade union, democratic and human rights had been broken. Even the direct elections conceded in the 1987 struggle failed to produce results which would change things radically in favour of Korea's working people.

The hopes of many were pinned on the election to the presidency in 1992 of one-time democracy movement leader Kim Young-sam. He even took a number of 'left-wingers' from the student movement into his administration. But, in spite of some popular moves against the most hated enemies of the workers, he would soon dash their hopes of any real improvement in their lives. Many of the old methods of holding them down would survive.

Under the new president, the army was, to some extent, purged. The secret police had their wings clipped a little. A number of Chaebol bosses were 'punished'. The founder of Hyundai, Chung Ju-young, was convicted of illegal spending on his attempt to beat Kim Young-sam in the 1992 election. Later, the founders of Samsung and Daewoo were amongst those put on trial and found guilty of corrupt dealings with the two previous heads of state - Chun Doo-hwan and Roe Tae-woo. The latter were also charged with treason for their part in the Kwangju massacre and put behind bars.

But, in general, the old 'rules of the game' still applied. A ruthless persecution of all opposition continued and hundreds of trade union and political prisoners remained in jail. Most importantly for the hundreds of thousands of workers joining the ranks of the emerging independent trade union federations, the labour laws remained firmly geared to 'single-unionism' and to maintaining, even intensifying, the unfettered rule of the Korean capitalist class.

Minju Nochong and Hankook Nochong

The mass strikes of that period - Korea Telecom, Seoul Subway, Kumho Tyres - were still being met with mass reprisals. By late 1994, agreement had been reached on the basis for forming a fully fledged alternative labour federation - the KCTU or Minju Nochong. A year later, the KCTU was up and running with an agreed structure, constitution, programme, aims and principles (all accessible on its website). In 1995 it orchestrated a nationwide struggle against a new wage curb policy "driven by government and employers", as the KCTU puts it in 'Our History' (also on the 'web'). As a show of strength, a national workers' rally was organised by representatives of over a thousand individual unions. On the day the KCTU applied to the Ministry of Labour for "acquisition of legality" - 23rd November 1995 – its leader Kwon Yong-kil was arrested and kept in prison until 13th March the following year.

With the economy already running into difficulties in 1995 and 1996, it was clear that the government, acting on behalf of the Chaebol and hiding behind arguments about 'Segychten' (globalisation) and world competition, would move onto the offensive in an attempt to take back the newly won advances in wages and conditions. The familiar tune about workers putting the economy at risk and 'pricing themselves out of the market' was not well received. Even the FKTU or Hankook Nochong came under pressure from its members to organise resistance but, as the KLSI puts it, "continued with its Labour-management co-operative revisionism". It supported the ban on 'multi-unionism' which excluded the KCTU from any workplace where either the FKTU or the company already had a union organisation and it did nothing to fight the prohibition of unions in the public sector. (It had also secretly signed wage accords with the employers in 1993 and 1994).

Nevertheless, the KCTU managed to build up a membership of over half a million, organising in the 'newer' industries. It has a monopoly of all of the six Korean car-making firms for example and all of ship- building. The FKTU has traditionally organised in medium-sized firms. It claims well over one million members, but its rivals say the real dues-paying membership is half that. The average membership of unions affiliated to the KCTU is 3,746 while the average for both federations is only 230. The rate of trade union membership - whether as a proportion of the total workforce of 20 million or of the 12 million employed workers - stands at no more than 14%. But this small 'active' can have a powerful effect; persecution creates formidable enemies.


End of Part Two

The first part of the pamphlet, covering pages 1 to 27, can be found here.

The final, third, part can be found here.

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