Bank of Korea Governor Shin Hyun-song said on the 28th that "there could be upward pressure on prices from Samsung Electronics performance bonuses." Earlier, labor and management at Samsung Electronics agreed to pay 10.5% of operating profit as a special management performance bonus to employees in the semiconductor (DS) institutional sector over the next 10 years.
After keeping the benchmark interest rate unchanged at 2.5% at a meeting of the the Bank of Korea's monetary policy committee on the day, Governor Shin said this during a press briefing.
When reporters asked, "Will the Samsung Electronics performance bonus structure fuel upward pressure on prices and affect the benchmark rate decision?" Governor Shin said, "Samsung Electronics performance bonuses could create upward pressure on prices as wages boost purchasing power and increase demand."
Governor Shin said, "First, it is most important for labor and management to reach an agreement, and wages also play a fairly important role in whether growth continues."
Meanwhile, on the day, the Bank of Korea raised its growth forecast for this year to 2.6% from 2.0% in its "Economic outlook." It also revised up the consumer price inflation outlook to 2.7% from 2.2%.