Non-compete and related clauses are fairly common in Korea. According to employers, between 25% and 35% of private-sector employees are currently bound by a non-compete clause compared to an average of 20% to 30% across the OECD countries covered by the survey (Figure 1, Panel A). Results from the employee survey confirm a high prevalence: 17% of workers report being bound by a non-compete clause, with an additional 31% who believe they “probably” are, compared to an average of 15% and 21% across the OECD countries covered by the survey (Figure 1, Panel B). In many countries, including Korea, the higher incidence reported by employees is essentially driven by higher uncertainty among employees than employers, reflected in the high share of “probably yes” answers.
Korea Economic Snapshot
The snapshot offers a concise summary of Korea's economic trends and prospects, including GDP and inflation projections, growth prospects, and structural reform priorities, drawing from the OECD Economic Survey, Economic Outlook, and Foundations for Growth and Competitiveness reports.
Key links
Key findings on non-compete and related clauses for Korea, July 2026
Non-compete and related clauses are widespread and their use is rising
Economic Survey of Korea - July 2026
Surging semiconductor exports have boosted growth despite headwinds from the Middle East crisis. Fiscal and monetary policy have supported consumption. Going forward, strengthening the fiscal framework could help achieve long-term sustainability. Reforming rules-based expenditure, including further pension reform, can help. Tax reform can raise revenue and underpin growth by prioritising the Value Added Tax, corrective taxes, the auctioning of emissions allowances, and broadening tax bases. High transaction taxes on immovable property could shift towards recurrent taxes to boost residential mobility. Gains in educational attainment have contributed to Korea's rapid growth. However, adult skills in Korea are below average, with skills deteriorating sharply with age, despite heavy investments in education and private tutoring. Refocusing resources towards education and training more closely aligned with in-demand skills and policies to improve labour market matching would encourage adult and on-the-job learning. Seoul and some urban centres continue to attract younger populations, while more remote areas face population decline, labour shortages and weakening local economies. Spatially targeted policies can break the self-reinforcing cycle between economic concentration, regional decline and low fertility by improving framework conditions in lagging regions, adapting planning and housing policies to demographic realities, leveraging place-based policies and rethinking intergovernmental fiscal frameworks.
SPECIAL FEATURES: TAX REFORM, EDUCATION AND LIFE-LONG LEARNING, REGIONAL IMBALANCES
Further reading
Economic Outlook: GDP and inflation projections, June 2026
GDP growth is projected to strengthen to 2.6% in 2026 before moderating to 1.9% in 2027. Semiconductor exports continue to drive growth and private investment. Consumption will continue a gradual recovery, supported by fiscal policy. Headline inflation is set to reach 2.6% in 2026 before falling back to the target in 2027. Potential shortages related to the evolving conflict in the Middle East are a key downside risk, while strong demand for advanced semiconductors could raise growth more than projected.
Monetary policy should remain focused on anchoring inflation expectations while looking through the temporary supply shock and tax changes. Targeted support to vulnerable households and businesses should be prioritised, while phasing out energy price support, export controls and price regulations. Creating a broad political consensus for a long-term fiscal sustainability framework would help meet fiscal pressures from rapid ageing.
Foundations for Growth and Competitiveness, April 2026
Korea’s GDP per capita has converged toward the OECD average over the past decades, and the gap with the most advanced OECD economies has continued to narrow until recently. Growth has mainly been driven by capital accumulation, heavy investments in education and increasing labour supply. However, due to low birth rates and population ageing, the labour force is shrinking. The low participation rate, compared to the top performing OECD economies, also points to untapped potential.
To enhance Korea’s growth potential, it is essential to promote competition and technological innovation while at the same time reducing carbon emissions. Continued efforts to reduce barriers to foreign direct investment can increase the inflow of know-how, capital and technology. Improving the education system would more efficiently provide skilled workers that meet businesses’ needs.
