The Central Bank of South Korea warns that record bonuses in the semiconductor industry could contribute to the already high inflation.

The Central Bank of South Korea has issued a warning regarding record bonuses granted to employees in the semiconductor sector, which could intensify inflation in the context of an already elevated rate above the official target.

In a report from June 17, the bank mentioned that this year's inflation has been primarily driven by rising energy prices, but also by the improvement in household incomes and wage increases. The exceptional bonuses offered by companies such as SK Hynix and Samsung Electronics, which can reach up to 10% of operational profit, are a source of concern. For example, an employee in the memory sector could receive bonuses of up to 626 million won (approximately $410,000). The bank emphasizes that, although bonuses do not typically generate inflationary pressures, exceptional levels can lead other sectors to demand wage increases, amplifying consumer demand. Increased consumption has already been observed in luxury goods sales, and retail company stocks have recorded significant gains.