Seoul National University

The purpose of this paper is to review major changes in the HR system in Korea and to suggest five propositions that need to be studied for better understanding of the configuration of performance-based HR system in Korea. The HR system in Korea went through great transformations after the financial crisis in the late 1990s. The performance-based HR system, which many Korean companies currently claim to have, is thought to have originated from the notion of so-called ‘best practices ’ of leading U.S. companies. In the framework of best practices, there is one universal HR practice set that can be applied to any situations. Although Korea maintained much of its unique organizational culture and HR practices, Korea also modified its HR system after the ‘best practices ’ to a great extent. By understanding the similarities and differences between the performance-based HR system and best practices, we will be able to better understand the current Korean HR system. In this study we call for empirical work on the changing configuration of HR system in Korea. We suggest five propositions that will be crucial in understanding the similarities and differences between the performance-based HR syste