hankyoreh

For one small South Korean textile firm in Shandong, China, Lunar New Year’s is not a welcome time. Every year after the week-long break, about 10 percent of its employees fail to report to work, resulting in a serious worker shortage at the company, which employs only 45 persons.

A growing number of Chinese workers from rural areas tend to change jobs after the Lunar New Year’s holiday, usually to ones offering better conditions, such as higher pay. The phenomenon is more evident in China’s southeastern regions, such as Guangdong Province. According to a survey done by the five Chinese offices of the Korea Trade Investment Promotion Agency (KOTRA), South Korean companies in China face severe financial hardships due to this new job-transferring trend.

South Korean firms in China expect around 10-40 percent of their workers to not return after the holiday this year. A small-sized auto bike helmet maker in Qingdao, Shandong Province worries that about 25 Chinese employees among their total of 250 will not return to work.

A mobile phone handset parts maker thinks that less than 300 workers will return among a total of 480, showing that even larger companies are now being affected by this mass worker exodus.

KOTRA’s Chinese branch suggested South Korean firms there use diverse incentives rather than pay raises to retain workers. A large company in Beijing resolved the issue by giving the hometown friends of workers jobs upon their return after the Lunar New Year’s break.

In addition, promises of increased pay upon return could prompt salary inflation, which could have a negative impact on companies’ bottom lines. In China, the minimum wage, which rose more than 10 percent last year, is expected to increase further this year.

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