Securities Industry, "Decision to Donate Emergency Disaster Relief Fund Is Up to Individuals..."

[Asia Economy Reporter Oh Ju-yeon] After Meritz Financial Group announced its plan for employees to 'donate' their emergency disaster relief funds, there was speculation in the securities industry that a domino effect of cautious donations might spread to other securities firms. However, aside from Meritz Financial Group, there have been no company-level decisions for employee donations, and the atmosphere is being shaped by individuals' voluntary participation at each securities firm.

According to the financial investment industry on the 11th, Meritz Financial Group decided that all employees would voluntarily donate the government's emergency disaster relief funds. Meritz Financial Group stated in a document released at the end of last month, "This is to align with the government's emergency disaster relief fund policy intent to share the pain with those suffering from the prolonged COVID-19 pandemic and to support the livelihoods of vulnerable groups." It added, "About 2,700 employees from affiliates including Meritz Financial Group, securities, fire insurance, capital, asset management, and alternative investment management, who earned more than 50 million KRW last year, will participate in the donation based on voluntary decision-making." It also mentioned that the initiative is carried out with the hope of spreading a 'voluntary donation culture' where social leaders and high-income earners take the lead.

Some securities firm employees agreed with the opinion that "the relief funds should be used for more difficult places," but also voiced that "it is excessive for the company to discuss employees' donation decisions at the corporate level." An employee of a securities firm said, "Although donating allows a 15% tax credit, it is more beneficial to receive the disaster relief funds." The government's emergency disaster relief fund provides up to 1 million KRW per household regardless of income or assets, but if donated, the tax credit is only about 150,000 KRW.

Each securities firm is leaving the decision on employees' emergency disaster relief fund donations to individual discretion instead of making a company-level declaration.

Although NongHyup also announced donations of emergency disaster relief funds, financial affiliates leave it to employees' discretion, and NH Investment & Securities does not discuss company-level donations. The same applies to other securities firms such as Shinhan Financial Investment and Kiwoom Securities.

The reason donation discussions arise in the financial and securities sectors is that, compared to other industries, they belong to high-income occupational groups with higher average salaries.

According to the Financial Supervisory Service's electronic disclosure system, Meritz Securities had an average salary per employee of 130 million KRW last year, and NH Investment & Securities recorded 123 million KRW. Additionally, Hana Financial Investment, Korea Investment & Securities, and others also had average salaries exceeding 100 million KRW per employee.

This content was produced with the assistance of AI translation services.