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South Korea's finance chief warns ‘excessive’ pay raises

South Korea’s Deputy Prime Minister and Finance Minister Choo Kyung-ho has expressed fears over the excessive raising of wages. In a meeting with business leaders in Seoul, Choo called on employers to refrain from a drastic pay raise that could possibly fan consumer prices growth. From information technology-oriented firms and some conglomerates, Choo said such a trend is poised to spread to other industries and businesses. He warned that excessive pay raises will aggravate inflation and this could also possibly expand social conflicts by widening the salary gap between conglomerates and small and midsize enterprises. Korea Enterprises Federation and CJ Group Chairman Sohn Kyung-shik promised that businesses would closely cooperate with the government on resolving the widening disparity in salaries between conglomerates and SMEs.

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