Abstract
Despite the introduction and expansion of collective bargaining, minimum wages and unemployment and in-work benefits, low pay is increasingly common in the Republic of Korea. This is at odds with much of the literature – including the ILO’s Global Wage Report 2010/11 – which suggests that protective policies will curb low pay. Focusing on the Republic of Korea, the authors examine this intriguing paradox and conclude that while the appropriate policy “menu” was implemented, its effectiveness was limited by incomplete coverage and insufficient benefit levels. They suggest this disappointing situation represents not only a labour market failure, but also a policy failure.