The wage-cut trend in financial circles began on September 3, when the chiefs of the three major financial firms decided to cut their wages by 30 percent. They said they took a pay cut to solve the unemployment problem of the younger generation by employing more with the money. (image: Kobiz Media / Korea Bizwire)
SEOUL, Sept. 14 (Korea Bizwire) – As more chiefs of financial firms are jumping on the wage cut bandwagon, high-ranking officials in financial circles are contemplating joining the trend.
According to industry watchers, executives from three major financial holding companies including KB, Shinhan and Hana decided to cut their own wages. However, other financial firms are waiting and observing the trend without any concrete plans.
The wage-cut trend in financial circles began on September 3, when the chiefs of the three major financial firms decided to cut their wages by 30 percent. They said they took a pay cut to solve the unemployment problem of the younger generation by employing more with the money.
With that decision, local financial holding companies like DGB, BNK and JB also cut the wages of their heads by 20 percent.
In addition, Woori Bank decided join the movement, and wage cuts for high ranking executives in financial circles are expected to grow.
However, financial affiliates to major business groups are watching from the sidelines. Given their position, they must discuss matters with their corporate parents, and might feel uncomfortable taking initiative without support from above.
An official at a card company said, “When a bank card company does something, we usually follow. However, this is different. The purpose of the wage cuts are to increase employment of the younger generation. We can accomplish the same goal in many other ways excluding the wage cut.”
Another official in the financial sector said, “It is a good idea but we have no idea when to make a move. We need to wait and see further.”
By John Choi (johnchoi@koreabizwire.com)
