November 25, 2015 12:07
Korea ranks third among OECD countries and emerging economies when it comes to the cost of firing workers.
The state-run Korea Development Institute on Tuesday said a comparison of layoff cost in 39 countries showed Korean businesses have to pay three-and-a-half months or 14.8 weeks worth of wages as severance pay per worker.
The only countries with higher expenses are Italy (17.2 weeks) and Turkey (16.2 weeks).
Japanese businesses only pay two weeks' wages as severance pay, which costs only a sixth of what their Korean counterparts pay.
The institute blamed labor laws that make the severance pay mandatory here.
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