Date
17 October 2017

S Korea firms hurting from China labor cost, Yonhap says

A majority of South Korean companies in China said rising labor costs are hurting their competitiveness, Yonhap news agency reported Tuesday, citing a survey by the Korea Chamber of Commerce and Industry. About 61.2 percent of respondents said a spike in minimum wage, social insurance premiums and welfare costs are affecting their bottom line, undermining their ability to compete in the market. The increases are mainly due to government efforts to boost incomes and reluctance by younger people to take up low-paying jobs, the report said. More than 72 percent of 201 companies in the survey said their labor costs have gone up more than 10 percent this year.

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TL/AC/RA

 

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