Employers cut back on Lunar New Year bonuses

Fewer companies will pay Lunar New Year bonuses this month as Korea’s corporate players face bleak economic circumstances.

Korea Employers Federation said on Sunday that 68.4 percent of the surveyed companies plan to dole out holiday-related cash benefits, down 5.4 percent from last year. The survey of 364 companies with more than five employees revealed that the average bonus was 1.2 million won ($1,080.80), up 2.7 percent or 32,000 won from a year ago. The bigger the company, the higher the bonus.

The companies with more than 300 employees will hand out an average 1.6 million won while those with less than 300 will give out 1.1 million won.

The large companies are more likely to provide extra cash for the holiday that falls on Jan. 28. While 75.4 percent of large companies will pay bonuses, only 67 percent of small and medium companies will do so.

By PARK EUN-JEE