The development of the private security industry in South Korea: history, progress, and critical issues, 1950-2014

Published date21 September 2015
Pages143-158
DOIhttps://doi.org/10.1108/JCRPP-05-2015-0011
Date21 September 2015
AuthorDae Woon Kim
Subject MatterHealth & social care,Criminology & forensic psychology
The development of the private security
industry in South Korea: history, progress,
and critical issues, 1950-2014
Dae Woon Kim
Dae Woon Kim is based at the
School of Criminology and
Criminal Justice, Griffith
University, Brisbane,
Queensland, Australia.
Abstract
Purpose The literature on the growth and regulations pertaining to private security has been largely
confined to western countries, with very little published on other jurisdictions including South Korea.
The purpose of this paper is to provide a general account of the development of the South Korean industry
and an assessment of regulation, covering the period from 1950 to the present day, and to explore areas of
possible improvement in regulation.
Design/methodology/approach A research synthesis method was utilised to identify and integrate
qualitative materials on turning points and regulatory changes, with the addition of a gap analysis based on
established concepts of best practice in industry regulation.
Findings The security industry in South Korea has grown exponentially, worth over $2.7 billion per
annum. Notwithstanding this, regulation evolved through piecemeal rather than comprehensive changes.
The problem is similar to those found in many other countries. However, in South Korea, over-relianceon
market mechanisms of regulation, combined with the governments lukewarm stance on stimulating
the non-public security sector, means that there are inadequate guarantees of baseline competence
and integrity.
Practical implications The study demonstrates the need for governments to be more proactive and
consultative in regulating the burgeoning security industry, and move away from ad hoc responses to
industry problems. Regulation should be comprehensive in covering all relevant operational aspects of
security work that are reflective of a growth profile. Regulatory agencies should actively explore training
programmes linked to career path development and professionalisation. Execution of regulatory enforcement
should be independent from political or third-party influence. Regulators should be innovative in applying and
evaluating research-based regulatory strategies.
Originality/value The study provides a comprehensive overview of the South Korean security industry and
regulatory issues, adding to a more international understanding of regulatory challenges in security.
Keywords Regulation, South Korea, Market, Training, Industry management, Private security
Paper type General review
Introduction
Scholarship on crime prevention and community safety has tended to focus on the role and
effectiveness of law enforcement responses (Jones and Newburn, 1998); however, in recent
decades, the increasing prominence of private providers has renewed interest among
academics in the profitability of the private security industry that can be investigated through
relevant historiography of the vibrant post-Second World War expansion periods and beyond
(Johnston, 1992). Despite this, there has been little research published on the evolution and
expansion of the security industry in Asia. Available reports indicate that Asian regions have
experienced dynamic growth in commercial security businesses since the 1960s, which is similar
Received 4 May 2015
Revised 7 May 2015
Accepted 8 May 2015
DOI 10.1108/JCRPP-05-2015-0011 VOL. 1 NO. 3 2015, pp.143-158, © Emerald Group Publishing Limited, ISSN 2056-3841
j
JOURNAL OF CRIMINOLOGICAL RESEARCH, POLICY AND PRACTICE
j
PAGE143
to that of western counterparts. Countries experiencing such growth include China (Zhong and
Grabosky, 2009), Hong Kong (Kwong and Chu, 2005), Japan (Yoshida and Leishman, 2006),
Singapore (Pow, 2013), and Taiwan (Hou and Sheu, 1994).
The private security industry in South Korea presents an excellent template by which to explore
many of the regionally representative characteristics and trends in this industry. Notably, their
rapid expansion, which is on par with shared economic growth from the 1970s onwards; and the
central, monopolistic modes of private security industry governance, unlike the federal compact
countries (such as the USA and Canada) where the administration of the private security industry
is delegated to state authorities. The aim of this paper is to engage with the evolving private
security sector in the South Korea setting, and to provide a reference point to examine the risk
factors that fed into industry growth, the types of services that have emerged to fill the void left by
public counterparts, and the necessary reform agenda.
To date, the number of South Korea-specific private security industry overviews published in
English-language journals remains limited to two: Button et al. (2006) and Lee (2004). Yet, Lees
(2004) article, Accounting for rapid growth of private policing in South Korea, although a
pioneering work on the growth determinants of for-profit security, seems to lack in-depth
examination of the growth, decline, and re-emergence eras, given the focus of enquiry. Button
et al.s (2006) contribution, The private security industry in South Korea: a familiar tale of growth,
gaps and the need forbetter regulation, discusses thesubject of regulatory optimisation, but with
limited focus on pivotal events from a historiographic perspective. This paper extends these two
earlier studiesby assessing many of the topics that remain unreportedthus far, thereby providing a
current representation of the privatisation phenomenon of the private security industry in South
Korea. The following brief overview describes South Koreas current demographics, which are
pertinent to the discussion of the development of the private security industry in this region.
South Korea (100,210 square kilometres) is roughly the size of the US state of Indiana or about
77 per cent the size of England.The population of South Korea is approximately 51 million, and it is
the 20th most densely populated country in the world, with 516 persons per square kilometre
(World Bank, 2015).The gross domestic product (GDP) per capitain South Korea, as reported by
the International Monetary Fund (2014), averaged US$1,765 in 1960, and has increased to
$28,226 in 2013, placing the country 29th (among 183 countries and dependencies) on this
indicator. Theprivate security sector in South Koreahas had a similar growth trajectory,advancing
from what was estimated in 1971 as less than 800 personnel, rising to an industry level in 2013
of more than 150,000 personnel (4,500 private security firms), valued at US$2.7 billion
(Korea NationalPolice Agency, 2014;see Figure 1 for the trends in totalnumber of security staffand
firms from 1962 to 2012; see also Figure 2 for the current representation of occupational
categories).
In comparison, the number of sworn police personnel to fulfil societys needs or demands has not
kept pace with the higher levels of employment in the private sector. The sworn police staffing
level in South Korea per 1,000 population was 0.5 in 2013, one of the lowest levels in the
Organisation for Economic Co-Operation and Development (OECD) member countries (see
Figure 3 for the number of police per 100,000 population, 1999-2012; see Figure 4 for further
comparison between the police and private security personnel between 1980 and 2012).
The manpower data of the industry notwithstanding, cynicism about the management of industry
growth is reflected in issues noted in other published studies, such as industry-wide cut price
wars and market saturation (Kim, 2005, p. 325); meagre industry award rates and 24-hour shift
policy (Button et al., 2006, p. 170; Lee, 2013, p. 103); and the widening revenue gap between the
conglomerate companies and the rest (Ahn, 2013, p. 24).
With these issues in mind, this paperexplores the change process that shaped thestructure of the
private security industry in South Korea. It begins by initially describing the methodology used for this
study and then locates the inception of contract security practices against the backdrop of the
Korean War, including early opportunities, unforeseen obstacles, and setbacks in the 1950s, 1960s,
and 1970s. Upon identifying the causes underlying these transitions, the focus then shifts to the
mapping of various demand-side factors, and the special political considerations that drove the
contract security boom post-1980, which provides an understanding of the approaches and
PAGE144
j
JOURNAL OF CRIMINOLOGICAL RESEARCH, POLICY AND PRACTICE
j
VOL. 1 NO. 3 2015

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT