Seoul, Jan. 22 (Korea Bizwire) — Samsung Electronics will take into consideration the recent minimum wage hike when negotiating the price of goods with small and medium-sized business partners.
The electronics giant has reportedly decided to reflect this year’s wage hike in business deals with SMEs in an effort to share the increased financial burden.
Business partners have welcomed the reports, as increased personnel expenses have posed a threat to many after the minimum hourly wage rose by 16.4 percent this year.
As the South Korean electronics manufacturer hopes to strengthen relationships with business partners and improve on the competitiveness of its products, industry sources are keeping a close eye on whether others will follow suit.
“As the competitiveness of Samsung’s business partners relates directly to its own competitiveness, other companies that operate in a similar manner appear set to consider comparable measures,” said an industry watcher.
Samsung runs a support fund for struggling companies that it has partnered with.
Last year, the electronics giant disbursed billions of won in incentives to its partners after enjoying record-breaking sales performance.
In addition, the company offers education programs on safety in the workplace and environment management, and provides management consulting as part of its innovation support for business partners.
Hyunsu Yim (email@example.com)