More than half of SMEs to skip Chuseok bonuses

A recent survey conducted by the Korea Federation of SMEs reveals that more than half of small and medium-sized enterprises (SMEs) are expected to skip providing Chuseok bonuses to their employees this year. Financial difficulties are cited as the primary reason for this decision. Out of 1,000 SME member companies surveyed from September 1-7, only 45.1 percent plan to provide Chuseok bonuses.

Among those planning to provide bonuses, 1.2 percent intend to increase the payment, while 40.5 percent aim to maintain last year's level, and 3.4 percent plan to reduce them. Over half of the companies surveyed, or 54.9 percent, have either decided not to provide bonuses or have yet to make a decision on the matter. This includes 30.8 percent of companies that have never provided separate bonuses and 7.7 percent that will not provide bonuses this year due to financial constraints.

Of the companies planning to provide bonuses, those offering a percentage of salary will give an average of 37.7 percent of employees' base pay. Conversely, those providing a fixed amount will offer an average of 665,000 won ($493) per employee. When it comes to regional differences, companies outside the Seoul metropolitan area are expected to provide higher bonus levels compared to those in the capital region.