Qualcomm Stock Gains After Jensen Huang Endorsement 
Coupang Hit With Record $409 Million Fine Over Data Breach Affecting 33 Million Users 
SpaceX IPO Sets Record With $75 Billion Raise, Valuation Hits $1.77 Trillion 
US Appeals Court Keeps Trump’s 10% Global Tariff in Effect During Ongoing Legal Battle 
Kremlin Says New EU Sanctions Won’t Hurt Russian Banks 
GM and Peak Energy Partner to Advance Sodium-Ion Battery Technology for Grid Storage 
Wizz Air Beats Profit Forecast as Cost Controls Offset Industry Challenges 
SK Hynix Stock Rebounds as AI Memory Chip Demand Fuels Expansion Plans 
Woodside Energy Acquires PetroChina’s Browse Stake, Expands Position in Major Australian Gas Project 
oOh!media Takeover Battle Intensifies as Bain Capital Joins Competing Bids 
South Korea Signals Possible Interest Rate Hike as Inflation Remains Elevated 
Oil Prices Surge Above $93 as Trump Escalates Iran Pressure and Strait of Hormuz Tensions Deepen 
New Zealand Manufacturing Slips Back Into Contraction in May 
ECB Set to Raise Interest Rates as Energy Shock Fuels Eurozone Inflation Concerns 
Gold Prices Slide Toward Second Weekly Loss as Fed Rate Hike Expectations Weigh on Market 
Asian Stocks Surge as Middle East Peace Hopes Lift Markets; SpaceX IPO Shatters Records 
Dollar Stabilizes as Markets Weigh Middle East Ceasefire Prospects and Central Bank Policy Outlook 
Naver and Kakao are two of the leading companies in South Korea. They are also rivals in some business areas, and today the two are said to be both facing declines with regards to profits.
According to The Korea Times, Naver and Kakao's share prices are expected to remain sluggish for the foreseeable future. Securities market analysts said that this is because of their dropping profitability due to the series of workers' pay increases.
Naver has signed an agreement with its unionized workers regarding the plan to add 10% on salaries this year. The hike will let each company staff to use up to ₩300,000 or around $244 of Naver's money every month to pay for their phone bills or purchase books. This will also allow them to park outside of the firm.
What's more, Naver made a commitment to provide monetary support for the company's in-house club activities. It was said that the online tech firm's plan for its latest wage hike came after it increased its payroll by seven percent last year and by five percent in 2020. The company took this step to prevent its software developers from leaving and moving to rival companies.
The voting for the new salary hike will take place today, and this will formally determine Naver's wage for 2022. But while the management is trying to keep its wages fair, it was reported that there are still employees who are demanding for an additional pay increase this year.
For Kakao, its share prices is not looking good as well after it decided to add 15% more for its employees' salaries. The company also implemented the wage hike despite unsatisfactory earnings in the fourth quarter last year.
"Kakao's first-quarter labor costs are expected to display a 61 percent rise year-on-year, and because of its additional hiring and wage increase this year, its annual labor cost is expected to rise 46 percent year-on-year, weighing on its operating profit," an analyst at Samsung Securities said.
Finally, the latest wage hikes in Naver and Kakao are good news for employees but apparently, these increases will hit the companies as it will have negative effects on the future earnings. "Because of the soaring labor costs, the year-on-year rise in its annual operating profit will not surpass 8.2 percent," a company official shared.
