Due to institutional legacies of the authoritarian regime, South Korea afte
r the transition to democracy failed to establish a neo-corporatist policy-
making body at the national level. Instead, micro-corporatist practices tha
t produced many publicized instances of labor-management cooperation in ind
ividual enterprises substituted the failed neo-corporatist concertation. Th
is article aims to clarify the mechanisms of micro-corporatism in South Kor
ea. Case studies of three large firms illustrate how changes in management
strategies and internal union politics produced a combination of industrial
peace and welfare-generating institutions at the firm level. The article c
oncludes with a brief discussion of the economic and political implications
of micro-corporatism.