Foreign companies can face difficulties when acquiring and assimilating Korean companies into their own organizations.  A significant obstacle is the strength and militancy of labor unions in Korea.  With any merger or acquisition, there will likely be a transition period as different working environments and corporate cultures are integrated into one.  However, this transition has been complicated by strong resistance from powerful Korean labor unions.  

For example, after Citigroup acquired the Korean KorAm Bank last year, relations between management and union members have been unstable and fraught with labor disputes.  Citibank employees who formerly worked for KorAm complained that the new management discriminated against them with regard to salaries and benefits.  They also felt that Citigroup was not sincere in its negotiations with them; they engaged in over a dozen rounds of negotiations since August, 2005.  These complaints were followed by a one-day strike and work slowdown in November 2005 that caused several branches to shut down. 

Difficult labor relations have consistently been an obstacle to foreign investment in Korea and impacted its global competitiveness.  Korea´s two largest labor umbrella groups, the Federation of Korean Trade Unions and the Korean Confederation of Trade Unions, called for a general strike on December 1, 2005 to protest the government´s labor policies on non-regular workers.