Wage increases by S. Korea`s major firms average 1.4 pct in 2009: survey

SEOUL, Nov. 23 (Yonhap) -- Wage increases this year by South Korea's major
companies slipped from a year ago amid a slowdown in the economy, according to a
survey released Monday by a business lobby.
The survey, conducted on 989 major companies with more than 100 employees by the
Korea Employers Federation, showed that managers raised wages by an average of
1.4 percent in 2009, down from 5.1 percent in 2008.
The survey did not ask respondents, however, whether the raises were adjusted to
take into account inflation and higher cost of living.
Wages recorded minus growth in the late 1990s due to the Asian financial crisis.
They grew annually by 6-7 percent in the early 2000s but fell to around 4-5
percent annual growth beginning in 2005.
Companies with 100 to 299 employees saw the largest payment increases this year
with average raises of 1.8 percent, followed by companies with 399 to 499 at 1.5
percent. Companies with over 1,000 employees recorded an average wage increase of
0.6 percent.
On average, the more employees a company has, the higher its starting salary is.
The average monthly salary, including bonuses, for a new employee came to 2.37
million won (US$2,051) at the companies with over 1,000 employees. The starting
salary at the companies with 100 to 299 employees was 1.95 million won.
ygkim@yna.co.kr
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