S. Korea’s corporate labor cost growth slows in 2023

SEOUL, Sept. 30 (Xinhua) — South Korea’s corporate labor cost growth slowed last year due to bonus cutback, labor ministry data showed Monday.
The per-capita monthly average labor cost in businesses with more than 10 regular employees increased 1.9 percent over the year to 6,131,000 won (4,700 U.S. dollars) in 2023, according to the Ministry of Employment and Labor.
It was slower than an expansion of 8.2 percent in 2021 and 2.8 percent in 2022.
Direct labor cost, including wage, overtime pay and bonus, gained 2.7 percent to 4,893,000 won (3,750 dollars) last year, lower than an expansion of 8.0 percent in 2021 and 3.0 percent in 2022.
Sluggish corporate earnings led to the reduction in bonus among local companies struggling with economic slump.
Indirect labor cost, such as retirement benefits, training expenses and welfare costs, shrank 1.1 percent from a year earlier to 1,238,000 won (950 dollars) in 2023 after growing 2.3 percent in the previous year.
Labor cost in the finance and insurance industry declined 6.3 percent last year, but those in the manufacturing and the construction sectors climbed 1.7 percent and 5.8 percent each.
The labor cost in businesses with less than 300 employees advanced 5.3 percent, but the labor expense in businesses with more than 300 workers retreated 1.0 percent last year. ■