By Choi Sung-jin
Employment growth at the nation's 100 largest businesses has remained at half the national average since the Park Geun-hye administration took office more than three years ago.
Also, the labor income share -- the share of labor income out of gross national income -- at the 100 biggest enterprises that produced profits during the period was 12 percent lower than the overall average, an opposition lawmaker said Wednesday.
But cash dividends paid to their shareholders, as measured by each 100 won paid in labor costs, rose from 13 won to 21 won.
Rep. Kim Sam-hwa of the People's Party, based on a report by the research unit of the Federation of Korean Trade Unions, said: "All this data shows the nation's large businesses have been bent on maximizing profits through cash dividends instead of trying to create more jobs through more investments."
From 2012-2015, the number of regular employees increased 13.4 percent, but comparable growth for the 100 largest companies was 7.3 percent, and that for the 20 biggest businesses was even slower at 3.4 percent.
The ratio of employee compensation to national income, the share of labor costs in total added value, also remained at 50.9 percent for the 100 largest companies and 47.1 percent for the 20 biggest enterprises, according to the report. These figures are lower by 12 percentage points and 15.8 percentage points, respectively, than the average labor income share of 62.9 percent as announced by the Bank of Korea last year.
"That the labor income share of the 100 largest companies is far smaller than the national average indicates these big businesses have been stingy in their efforts to share their profits with the rest of society by, for instance, offering a larger number of decent jobs," said Hwang Seon-ja, who wrote the report.
Twelve companies, including Naver and SK Telecom, saw their assets increase but the number of employees fall during the period. The share of their indirect employment costs also rose, from 46 percent in 2013 to 47.9 percent last year, showing that large companies increasingly depend on indirect hiring, including dispatched workers.
In contrast to their increasingly weaker corporate social responsibility, the large businesses have become more generous to shareholders. Between 2012 and 2015, the payout ratio of the 100 largest companies rose from 13.1 percent to 21.3 percent, and that of the 20 biggest businesses jumped from 14.4 percent to 25.7 percent.
"The Park administration has implemented big business-oriented industrial policies since its inauguration but the large enterprises have been bent on realizing profits rather than increasing jobs for the people," Rep. Kim said.
Employment growth at the nation's 100 largest businesses has remained at half the national average since the Park Geun-hye administration took office more than three years ago.
Also, the labor income share -- the share of labor income out of gross national income -- at the 100 biggest enterprises that produced profits during the period was 12 percent lower than the overall average, an opposition lawmaker said Wednesday.
But cash dividends paid to their shareholders, as measured by each 100 won paid in labor costs, rose from 13 won to 21 won.
Rep. Kim Sam-hwa of the People's Party, based on a report by the research unit of the Federation of Korean Trade Unions, said: "All this data shows the nation's large businesses have been bent on maximizing profits through cash dividends instead of trying to create more jobs through more investments."
From 2012-2015, the number of regular employees increased 13.4 percent, but comparable growth for the 100 largest companies was 7.3 percent, and that for the 20 biggest businesses was even slower at 3.4 percent.
The ratio of employee compensation to national income, the share of labor costs in total added value, also remained at 50.9 percent for the 100 largest companies and 47.1 percent for the 20 biggest enterprises, according to the report. These figures are lower by 12 percentage points and 15.8 percentage points, respectively, than the average labor income share of 62.9 percent as announced by the Bank of Korea last year.
"That the labor income share of the 100 largest companies is far smaller than the national average indicates these big businesses have been stingy in their efforts to share their profits with the rest of society by, for instance, offering a larger number of decent jobs," said Hwang Seon-ja, who wrote the report.
Twelve companies, including Naver and SK Telecom, saw their assets increase but the number of employees fall during the period. The share of their indirect employment costs also rose, from 46 percent in 2013 to 47.9 percent last year, showing that large companies increasingly depend on indirect hiring, including dispatched workers.
In contrast to their increasingly weaker corporate social responsibility, the large businesses have become more generous to shareholders. Between 2012 and 2015, the payout ratio of the 100 largest companies rose from 13.1 percent to 21.3 percent, and that of the 20 biggest businesses jumped from 14.4 percent to 25.7 percent.
"The Park administration has implemented big business-oriented industrial policies since its inauguration but the large enterprises have been bent on realizing profits rather than increasing jobs for the people," Rep. Kim said.
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