S. Korea’s corporate labour costs slowed in ’23

South Korea’s corporate labour costs experienced a slowdown in 2023, primarily due to reduced bonuses, according to data released by the Ministry of Employment and Labour.

The per-capita monthly average labour cost for businesses with more than 10 regular employees increased by 1.9 per cent to 6,131,000 won in 2023.

This represents a significant decrease from the 8.2 per cent growth seen in 2021 and the 2.8 per cent growth in 2022.

The direct labour cost, which includes wages, overtime pay, and bonuses, grew by 2.7 per cent to 4,893,000 won last year. This was also slower than the previous two years, with 8.0 per cent growth in 2021 and 3.0 per cent growth in 2022.

Indirect labour costs, such as retirement benefits, training expenses, and welfare costs, decreased by 1.1 per cent to 1,238,000 won (in 2023. This marks a reversal from the 2.3 per cent growth recorded in the previous year.

The labour cost in the finance and insurance industry declined by 6.3 per cent last year. However, the manufacturing and construction sectors saw increases of 1.7 per cent and 5.8 per cent respectively.

Attribution: Xinhua

Subediting: M. S. Salama