South Korea’s central bank said on June 17 that unusually large performance bonuses in the information technology sector could add to inflation. These payouts are lifting spending and wages more broadly. However, the 2026 inflation outlook still mainly reflects energy costs tied to the war.

The Bank of Korea forecasts full-year consumer inflation of 2.7%, above its 2% target. The central bank said price pressures intensified after the war in the Middle East. In May, it said consumer inflation reached 2.6% in April.

SK hynix allocates 10% of operating profit to bonuses under a 2025 labor agreement. Meanwhile Samsung Electronics’ chip bonus system is capped at 50% of annual salary.

Regional spending data partly supports the Bank of Korea’s warning. At a Yongin department store in Gyeonggi Province’s chip-manufacturing belt, luxury jewelry sales were up 146.3% in May from a year earlier.

The Bank of Korea’s recent rate guidance focused on energy and commodity shocks rather than bonuses. Separately South Korea’s labor minister urged large tech firms to share excess gains. Analysts said such deals could strengthen wage demands in other industries.

🔗 Source: CNBC

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