North Korea demands raises for its workers at South Korean companies

Special to WorldTribune.com

By Lee Jong-Heon, EastAsiaIntel.com

Cash-strapped North Korea has unilaterally granted a raise to its workers employed by South Korean companies at the inter-Korean joint industrial complex.

North Korean workers at the Kaesong Industrial Complex.
North Korean workers at the Kaesong Industrial Complex.

The wages paid its workers is actually a major hard currency revenue stream for the North Korean regime.

South Korean firms pay the wages in U.S. dollars to the North’s state agency that manages the complex, not directly to the workers.

Last month, the North revised labor rules and unilaterally abolished a 5 percent cap on the annual wage increase for its workers at the Kaesong Industrial Complex, announcing the 5.2 percent elevation of the minimum wage to $74 from $70.35, starting in March.

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