South Korean Semiconductor Companies' Bonuses Increase by 60%, Inflation Concerns Arise in Japan

The average bonus for South Korean semiconductor companies has increased by 60% compared to the previous year. The Japan Research Institute (JRI) analyzed that this could impact wage negotiations and price trends. There are concerns that high compensation in the semiconductor and IT industries may set a negotiation standard that spreads to other industries, thereby increasing inflationary pressures. SK Hynix and Samsung Electronics have agreed to pay a certain percentage of their operating profits as bonuses. While performance-linked bonuses connect corporate performance with compensation, applying the same standards to other industries could increase the burden. The institute pointed out that labor productivity in the South Korean service sector remains lower than that of manufacturing, warning that wage increases could pressure corporate profits and be reflected in selling prices. Historically, there has been a tendency for service price increases to rise when wages in the service sector increase. If discussions about bonuses extend beyond semiconductors to the service sector, there could be greater price pressures. Bonus negotiations are linked to wage and price trends, and the impact of expanded bonuses on consumer prices will vary depending on the results of wage negotiations across industries.

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