South Korea's powerful labor unions have shown remarkable restraint since Asia's economic crisis struck the nation in 1997. As a result, the government has been able to enact sweeping reforms that not long ago would have sent throngs of aggrieved workers into the streets. Now the truce seems to be unraveling. The country's top labor groups have vowed to go on a nationwide strike, starting May 31. Well, not exactly.
Many Korean companies are too sick to weather internal or external shocks.
Some won't survive without capital infusions. Little would spook investors more than the spectacle of workers clashing with riot police. Based on Korea's cantankerous labor history, investors know authorities would be hard-pressed to keep reforming in the face of mass revolt. No one understands this better than President Kim, who soon after taking office in 1998 capitalized on his status as an ex-dissident to get the unions to play ball. Just give us time to overhaul the economy, he said.