<Comparison of wages for Korea-Japan parent and child companies>

<Comparison of wages for Korea-Japan parent and child companies>

I read a book called "Sagyebo" that I bought from Tokyo, and here comes the starting wage of each company. I'm surprised that there are quite a few.

There are cases where subsidiaries in Korea and parent companies in Japan are listed as themes often covered in my investment lectures. Below is a comparison of workers' wages in Korean subsidiaries and Japanese parent companies. The business areas of the two companies overlap because of the parent-subsidiary relationship that is connected. In fact, the same thing can be said. Based on the most recent annual report

1. Saron Automotive and Nisshinbo Holdings (3105.T)

The parent company of Saron Automotive is Japan's Nisshinbo Holdings. It has a 65% stake.

The average salary per person for Saron Automotive is KRW 64,105 thousand (average number of years of service 11.9 years)
Nishinbo Holdings' average salary per person is 6,433,200 yen (18.5 years of average service)
* Both include fixed-term (temporary) jobs.

2. Gishinjeonggi and Futaba (6986.T)

Kishin Jeonggi's parent company is Futaba, Japan. Its stake is 60.89%

The average salary per person for the current term is 52,836,000 won (average number of years of service 11.8 years)
Futaba's average salary per person is 5,639,076 yen (average number of years of service is 21.6 years)
* Although the difference is small, it should be considered that the difference in the number of years of service is almost twice. Again, a fixed-term (temporary) inclusion value

3. STEC and Foster Electric Co (6794.T)

Estek's parent company is Foster Electric of Japan. Its stake is 49.45% (however, its effective stake is over 60% excluding treasury stocks)

Estek's average salary per person is KRW 67 million (average number of years of service 13.83 years)
Poster Electric's average salary per person is 6,666,060 yen (average number of years of service is 16.0 years)
* However, STEC does not know whether there are no fixed-term (temporary) workers or not, but the corresponding column is blank.

Considering the current exchange rate, the wages of Korean subsidiaries are higher in all companies than in Japan. Of course, taxes vary from country to country or there may be additional welfare benefits.

It may be a problem if the Korean subsidiary only has high wages and doesn't have that much productivity, but it's not exactly like that. For example, although Saron Automotive has a somewhat operating loss, Nissinbo Holdings is not very high in operating profit ratio, and Futaba and Foster Electric have lower operating profit margins than Korean subsidiaries.