Productivity to go down while minimum wage to go up… Recruitment of 10 major corporations to increase 2.3%
Park Jung Il | comja77@ | 2018-05-18 10:58:22

The top 10 group companies in Korea have increased by 2.3 percent in the past one year. Despite the improvement in the performance of major group companies, job growth did not increase significantly due to regulations such as minimum wage increase, corporate tax increase, reduction of working hours, deterioration of corporate investment environment, and deterioration of labor productivity.

The total number of employees based on headquarters totaled 647,898 (including Shinsegae, excluding unlisted NACF) Up 2.3 percent from the same period last year as of the end of the first quarter of this year.

The average salary of 10 companies in the first quarter increased by about KRW 2 million to KRW 22 million. It has received more than KRW 7 million a month.

Excluding Hyundai Heavy Industries, whose shipbuilding business is the main force, the number of group employees increased, but only slightly. Samsung, on the other hand, the number of employees increased by 6146 compared to the same period of the previous year. However, 5632 of them (91.6%) were attracted to Samsung Electronics` DS (Device Solution) business. SK Group also increased its number of employees by more than 2000 in SK Hynix, while other affiliates remained in the previous year`s level.

Meanwhile, this is similar to that of major conglomerates. According to market researcher CEO Score, operating profits grew 19.4% from the same period a year ago, as a result of the 100 companies that reported business reports in the first quarter on April 4. However, excluding Samsung Electronics and SK Hynix, sales declined by 7%.

On the other hand, the business community considers that changes in the manufacturing environment, such as factory automation, and increases in labor costs, such as normal wages and minimum wage increases, are among the factors that hinder the employment of large companies. The market changes every moment, but once you increase the number of employees, it is not easy to reduce it again. The pressure to improve the governance structure of the government against the total number of large corporations and the barriers to entry of new businesses by large businesses such as small and medium enterprises are also considered to be the main reasons for investment deterioration.

"It is more important to increase the number of SMEs, rather than regulation," he added as transparent management and win-win management between small and medium corporations are obviously important. The government`s deregulation and autonomous job creation efforts should be in harmony."

By Park Jung Il&Kim Yang Hyuk comja77@

[ copyright ⓒ The Digitaltimes ]