As the price of one don (3.75g) of gold approaches 700,000 KRW and gold prices continue to hit record highs, it has been found that major construction companies are still upholding the tradition of "golden rewards." Some companies offer as much as 30 don of gold, and with the recent surge in gold prices, employee preference for these rewards remains high. However, as generational shifts occur, more employees are seeking cash-based or welfare-oriented rewards, leading a growing number of companies to modify or discontinue their gold reward systems.

'Golden Rewards' How Much Do Companies Give?

■ Hyundai Construction: 10 years of service → 5 don.
Increases by 5 don every 5 years thereafter, 30 don at 35 years of service (approximately 20.34 million KRW)

■ Hanwha Construction Division: 10 don at 10 years, 20 don at 20 years, 30 don at 30 years

■ DL E&C: 1 don at 10 years, 3 don at 15 years, 10 don at 30 years of service

■ Samsung C&T and GS Construction: Awarded with gold medals or pure gold medals

■ Daewoo Construction: Gold → Travel vouchers → Converted to cash

■ Engineering Industry: Gold rewards have almost disappeared

According to the construction industry on September 25, Hyundai Construction maintains the most standardized gold reward system in the sector. Employees who reach 10 years of continuous service receive 5 don of pure gold, and the reward increases by 5 don every five years, reaching 30 don at 35 years of service. According to the Samsung Gold Exchange, the standard price for one don of gold as of this day is 678,300 KRW. This means that an employee who has worked at Hyundai Construction for 35 years would receive 30 don, equivalent to 20.34 million KRW. Hanwha Construction Division also offers substantial gold rewards: 10 don for 10 years, 20 don for 20 years, and 30 don for 30 years of service. All affiliates of Hanwha Group share a similar reward structure.

Some companies provide "gold medals" instead of gold bars. The construction division of Samsung C&T awards gold medals every five years to employees with more than 10 years of service. GS Construction gives pure gold medals to employees who have served for 20 or 30 years.

Just as gold is traditionally given at a child's first birthday or weddings, it took root as an institutionalized "symbol of heartfelt appreciation." Gold, as a tangible asset, tends to appreciate in value over the long term. In addition, since there is little tax burden upon receipt, both companies and employees are generally satisfied. A representative from a construction company that maintains the "golden reward" tradition said, "In the past, the symbolic meaning was more significant, but recently, the perceived value of the reward has increased thanks to the rise in gold prices."

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While most employees keep the gold they receive as a token of long service, some do convert it into cash. In fact, listings for "long-service gold bars" frequently appear on secondhand trading websites. Despite employee preferences, some companies have discontinued gold rewards. DL E&C, which had long provided gold, recently switched to cash payments. Daewoo Construction also used to give gold to long-serving employees but later changed the reward to travel vouchers, and more recently, to cash. A company representative explained, "We shifted the system to focus on tangible benefits that employees can truly feel," adding that this change reflects "differences in generational preferences."

With gold prices having surged by more than 50% over the past year, some companies have abolished gold rewards altogether. In the engineering industry, almost no companies continue to offer gold as a reward. Even major construction companies that still maintain gold rewards are considering abolishing the system or finding alternatives, as it is difficult to reduce the amount given. An industry representative commented, "The symbolism and tradition of gold remain strong, but more employees are seeking practical rewards such as opportunities for self-development or rest," and predicted, "Going forward, the trend toward replacing gold rewards with cash-based or welfare-oriented benefits will only accelerate."