Samsung freezes salaries for first time in six years

For the first time since the global financial crisis, Samsung will freeze the wages of its employees as it gears up to face tougher competition across the globe.

There will be no pay rise for Samsung Electronics employees this year for the first since 2009 as the company gears up to face what may be its toughest times.

The conglomerate's labour management council, which oversees relationships between the company and its employees, agreed that salaries will be frozen this year due to the crisis caused by intensified global competition and a fast rise of followers.

"To overcome the unpredictable economical situation, we agreed that we must first cement internal competence," said a Samsung Electronics spokesman.

The South Korean electronics giant last year raised basic wages by 1.9 percent, following its high performance in 2013. It was raised 5.5 percent in 2013, and 4 percent in 2012 and 2011.

The move follows Samsung's earlier decision to freeze pay for executive-level employees, though they will still be paid incentives depending on performances.

Samsung froze wages back in 2009, due to the global financial crisis.

Meanwhile, LG Electronics will raise average employee wages by 4 percent. LG faired well last year, turning a profit in its mobile business thanks to the success of the G3.

Source: ZDNet.co.kr