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[Chosun Biz] Expanded Ordinary Wages May Lead to Less Employment (Nov.22, 2013)
Expanded ordinary wages may lead to less employment
Mr Thilo Halter, the president of the European Chamber of Commerce in Korea (ECCK), pointed out inconsistency in the Korea’s regulatory environment.
Regarding a pending decision at the Supreme Court on the scope of ordinary wages, he said, “court rulings should be respected, but if the decision penalizes those that have followed the MOEL guidelines, it will send a negative signal to foreign investors.”
“Businesses try to minimize costs. If there is a sharp increase in labour costs, the management will look for ways to reduce to cost. It may include hiring less,” Mr Halter said.
[Chosun Biz] Expanded Ordinary Wages May Lead to Less Employment (Nov.22, 2013)
Expanded ordinary wages may lead to less employment
Mr Thilo Halter, the president of the European Chamber of Commerce in Korea (ECCK), pointed out inconsistency in the Korea’s regulatory environment.
Regarding a pending decision at the Supreme Court on the scope of ordinary wages, he said, “court rulings should be respected, but if the decision penalizes those that have followed the MOEL guidelines, it will send a negative signal to foreign investors.”
“Businesses try to minimize costs. If there is a sharp increase in labour costs, the management will look for ways to reduce to cost. It may include hiring less,” Mr Halter said.
Full text (in Korean): Interview with Thilo Halter, ChosunBiz, Nov.22