Get Older, Earn Less
The Ministry of Employment & Labor announced on July 1 that 177 out of the 378 companies associated with the top 30 business groups in Korea have started wage peaks, and the others are mulling over introducing it, with retirement at 60 being compelled by law next year.
The ratio of introduction was found to be higher in those companies with larger market capitalization.
For example, 151 out of the 275 subsidiaries have already adopted wage peaks in the top 15 members of the Samsung, Hyundai Motor, SK, LG, Lotte, POSCO, Hyundai Heavy Industries, GS, Nonghyup, Hanjin, Hanwha, KT, Doosan, Shinsegae, and CJ Groups. The percentage is approximately 25 percent, or 26 out of 103, when it comes to the other 15 of LS, Daewoo Shipbuilding & Marine Engineering, Kumho Asiana, Dongbu, Daelim, Booyoung, Hyundai, OCI, Korea Water Resources Corporation, Korea Expressway Corporation, Korea Electric Power Corporation, Korea Railroad Corporation, Korea Land and Housing Corporation, Korea Gas Corporation, and Korea National Oil Corporation.
The age at which the salaries of the employees subjected to the wage peak begins to be cut is 56 in 37.5 percent of the companies, followed by 58 (29.2 percent), 57 (16.7 percent), and 59 (12.5 percent). Most of the companies apply a 10 percent wage cut to employees aged 56, 19 percent cut to 57, 27 percent cut to 58, 34 percent cut to 59, and 40 percent cut to 60.