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Korea's tradition of gifting gold to long-serving workers hits snag as prices surge

Published: 10 Feb. 2026, 18:05 Updated: 10 Feb. 2026, 19:58

An employee arranges gold bars at a jewelry shop in Jongno District, central Seoul, on Jan. 21. [NEWS1]

At pharmaceutical firm Chong Kun Dang, one employee preparing to mark a decade on the job is set to receive a bonus pegged to the market price of 10 don (a traditional Korean unit of weight), or 1.3 ounces, of gold — now worth some 90 million won ($6,200), according to the Korea Exchange.

“Gold has gone up so much that I’ll be getting nearly double what last year’s recipients did,” the employee, surnamed Kim, said. “I’m happily thinking about how to spend it.”

But as gold prices continue to surge, companies that reward long-serving employees with gold bars, medals or keys are facing growing financial pressure. Many Korean companies have used gold for its symbolic value and liquidity.

On Feb. 10 as of 7:30 p.m., gold futures traded at $5,063.2, per ounce on the Comex, down 0.32 percent from the previous day. Bloomberg attributed the recent spike to remarks by U.S. President Donald Trump suggesting large-scale military action against Iran, which drove up safe-haven demand. Weaker expectations for the U.S. dollar have also contributed to interest in gold as an alternative investment.

In response to soaring prices, some companies have begun replacing gifts of gold with cash. Until last year, Korean pharmaceutical company GC Biopharma gave employees 10, 20 or 30 don in gold each for 10, 20 or 30 years of service, respectively. This year, the company has switched to cash bonuses of 5 million, 10 million and 15 million won, in these cases.

Diagnostic solutions firm Seegene also scrapped its gold rewards — previously 10 don for 10 years — and now gives employees a cash bonus calculated by multiplying 500,000 won by the number of years they've served.

The ″Golden Bat Statue,″ a landmark sculpture inside the Golden Bat Exhibition Hall near Hampyeong Expo Park in Hampyeong County, South Jeolla [HAMPYEONG COUNTY]

Some companies have already made the shift. Since 2020, Lotte Department Store has given gift certificates worth 1 million, 1.5 million and 2 million won each for 10, 15 and 20 years of service, respectively, instead of offering gold or its equivalent value.

SK Innovation once handed out gold “wings of happiness” badges at 10 years of service but now gives monetary rewards. LG Chem gives employees the option to choose between about 1 million won in gold or gift certificates every 10 years.

“We used to give gold business cards every 10 years of service, but I was shocked by the latest cost estimate from our general affairs team. Now, we’re considering alternative gifts,” a CEO of a mid-sized company in the greater Seoul area said.

Still, some firms choose to continue the tradition. Hanwha Group gives 10, 20 or 30 don of gold to employees at those respective milestones across all affiliates.

A gold medal and commemorative plaque given to long-serving workers at Hanwha Group [HANWHA GROUP]

“We view the gold gifts as a way to recognize long-term employees and boost morale,” a company official said.

Shinsegae gives 5, 10 or 15 don in gold at 10-year intervals. At Hyundai Motor, the collective bargaining agreement explicitly stipulates gold medals be given every five years starting from the 10th year of service. Yet, concerns remain for these companies as well.

“We set aside funds in advance for long-service rewards, but the sharp rise in gold prices has pushed us over budget,” one corporate official said. “We’re considering options like buying gold in advance if prices fall.”

“There are also concerns that employees who receive their reward in years when gold prices are low may feel they’re getting shortchanged,” another company official said.

Update, Feb. 10: Price of gold changed.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM KYUNG-MI [[email protected]]