[Exclusive] Daishin Securities to overhaul its “wage peak system” after 10 years... Labor and management agree to expand compensation [fn Market Watch]

[Financial News] Daishin Securities and its labor union have tentatively agreed to reform the wage peak system, which has been in place for 10 years. Attention is focused on whether this will mark the start of changes to a compensation and personnel system that has remained entrenched for a long time, going beyond a simple wage increase. 
According to the financial investment industry on the 10th, the Daishin Securities chapter of the National Union of Office, Financial and Service Workers reached a tentative agreement in 2026 wage negotiations on the 9th. The key measure is to raise the cumulative payout rate over the five-year wage peak period by 30 percentage points, from 300% to 330%. For an employee with a regular annual salary of KRW 100 million, this would mean a total of KRW 330 million in wages over five years, up KRW 30 million from the previous KRW 300 million.
Lee Nam-hyeon, head of the Daishin Securities chapter of the National Union of Office, Financial and Service Workers, said, “The revised plan is set to take effect in January 2028.”
However, the method for allocating payout rates by year will be worked out in labor-management negotiations in 2027. The overall compensation under the wage peak system will be expanded, while the actual payment structure remains subject to further negotiations.
Monthly base pay for all employees will also increase by KRW 127,000. The agreement provides for a lump-sum settlement payment of KRW 4 million to employees in grades 1 through 4 and KRW 4.2 million to those in grade 5 and below.
Amid growing discussion of extending the retirement age, disputes over the duration and compensation level of the wage peak system are seen as an industry-wide challenge for the securities sector. The tentative agreement at Daishin Securities is also viewed as an effort to strike a balance between improving conditions for older employees and managing labor costs.
A financial investment industry official said, “With the wage peak system, what matters is how it is linked to promotion and compensation systems for long-serving employees, rather than simply raising payout rates,” adding, “The key question is whether this agreement leads to actual improvements in the personnel system.”
Meanwhile, the union plans to hold a membership ratification vote on the tentative agreement on the 12th. Whether a final agreement is reached will depend on the vote.
[email protected] Kim Kyung-a Reporter