The Financial Services Commission (FSC) announced that nine state-run financial agencies will introduce a performance-based wage system. These nine agencies are the Korea Deposit Insurance Corp., Korea Asset Management Corp., Korea Housing Finance Corp., Korea Credit Guarantee Fund, Korea Technology Finance Corp., Korea Development Bank, Industrial Bank of Korea, Export-Import Bank of Korea and Korea Securities Depository.
This wage system will apply to all employees, excluding the lowest-ranking workers and those in technical positions. The proportion of performance-related pay to total annual salary will expand from 10% to 30+% by the end of next year. Under this system, the salary gap between workers of the same rank is expected to widen according to their level of performance.
The FSC will also encourage private banks to adopt similar performance-based wage systems, for which the FSC will set up a task force consisting of both labor and business representatives to come up with measures to improve current annual salary systems by the end of March this year. After this, the FSC will complete its reform of relevant regulations by the end of 2016. The FSC will also amend the current wage/HR system this year.