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APAC Edition
23rd April 2024
 
THE HOT STORY
Kakao Games abandons English names for employees
Kakao Games, the gaming subsidiary of Korean tech giant Kakao, is abandoning its tradition of using English names for employees. CEO Han Sang-woo announced the change, stating that employees will now be addressed by their Korean names. The company said it aims to create a more unified and respectful corporate culture by using job titles and the honorific "nim" to address employees. The decision comes after complaints from workers about the confusion caused by using both English and Korean names. The change in naming system is part of Kakao's efforts to undergo a corporate makeover following scandals and internal friction. Kakao Games will also introduce a new compensation system based on performance, and the company is also planning to eliminate managing director positions to foster better internal communication.
HEALTH & WELLBEING
Climate change is affecting workers' mental health
Climate change is driving a crisis in workers' mental health, according to a report by the International Labour Organisation (ILO). The report highlights that extreme weather, climate change-induced disasters, and exposure to excessive heat are contributing to anxiety, depression, and post-traumatic stress disorder among workers. The ILO said that workers may experience distress related to financial and workload problems, as well as loss of hope for the future of their community. The report also notes that climate change risks are worsening the financial situations of some workers, particularly farmers and fishermen, while also flagging that climate change will impact seasonal and transient farm workers, leading to increased stress.
Australian construction industry's mental health challenges
The construction industry in Australia is facing a mental health crisis, with high rates of depression, anxiety, and suicide. The charity MATES in Construction estimates that someone from the industry is lost to suicide every two days. Mental health challenges have been exacerbated by high interest rates, increased costs, and a shortage of labour and materials. In 2023, MATES in Construction's helpline received 1,374 calls, already surpassing the number in 2022. James Knight, an electrical business owner, has experienced the impact on his own mental health and has taken action to support his employees. He reimburses staff for health-related costs and encourages open communication about mental health. The building and construction industry is at a significantly higher risk of mental health problems due to long hours, dangerous work, and loneliness. Mental health charities are working to improve the industry's culture and provide support on job sites.
REMUNERATION
TCS employees without minimum attendance won't get performance bonus
Tata Consultancy Services (TCS), India's largest IT company, has implemented a new attendance-based policy for its employees. According to an internal memo, employees with less than 60% attendance or those who have attended office for fewer than three out of five days a week will not receive any performance bonus. TCS has linked its work-from-office policies to its quarterly variable pay or annual bonus. The memo also stated that employees consistently neglecting the '85% and above' office attendance requirements may face disciplinary action. TCS has made it compulsory for employees to attend office for 45 hours a week.
STRATEGY
Tensions between Beijing and Washington remain top concern for US companies in China
A report by the American Chamber of Commerce in China reveals that tensions between Beijing and Washington continue to be the primary concern for US companies operating in China. The report also highlights inconsistent policies, rising labour costs, and data security issues as other top worries. Despite claims by Chinese leaders that foreign businesses are welcome, many still face barriers to investment and operations. The report acknowledges the improvement in US-China relations in 2023 but states that the US presidential election is casting a shadow over the future business environment. The report emphasizes the need for high-level exchanges and communication between the two sides. It also provides recommendations for both China and the US, including the creation of transparent economic policies and clear visa policies for students. The report urges China to clarify and narrow the scope of its anti-espionage law and calls on the US to engage with Chinese companies to address export control concerns. While American companies are not planning to move supply chains out of China, their willingness to increase investments there is decreasing.
WORKPLACE
Vast majority of Asian companies provide insurance benefits to employees, report says
A new report reveals that 85% of companies in Asia provide some form of insurance benefit to their employees. The most commonly provided insurance benefit is life/accident insurance, with 55% of respondents offering this. However, critical illness insurance is only provided by 25% of employers, and health insurance cover for employees' dependents is provided by less than a fifth of companies. The "Asia Employee Benefits Report" also highlights that small organisations are less likely to provide insurance benefits compared to larger organisations. Budgetary controls and considerations, not being required by law, and difficulty of implementation are the main barriers to offering insurance benefits. The survey, conducted by the Chartered Institute of Personnel and Development (CIPD) in partnership with AIA, collected data from over 400 respondents in Asia.
WORKFORCE
Hong Kong bankers cut as China deals slow
About 200 Hong Kong bankers have lost their jobs in the past year as the slowdown in China deals continues, according to a report by Bloomberg Intelligence. Senior Hong Kong bankers earn 40%-70% more than their peers in Singapore, but this higher compensation may become a "curse" as employers look to cut costs. The report suggests that more global banks may trim their workforces in Hong Kong due to China's slowdown. The decline in investment banking staff in Asia is attributed to a lack of deals, deteriorating US-China relations, a crackdown on private enterprise, and a property crisis. Hong Kong's IPO market has been depressed, with proceeds falling to the lowest level in over two decades. The job market in wealth and private banking, however, remains stable.
North Korean animators may have helped create popular western cartoons despite sanctions
North Korean animators may have helped create popular television cartoons for big western firms, including Amazon and HBO Max, despite international sanctions on North Korea, a research report has found. The report discovered files on a North Korean internet server that included animations and instructions related to projects for foreign studios. The researchers observed that the files contained editing comments and instructions in Chinese, suggesting a go-between was responsible for relaying information between the production companies and the animators. The report could not determine the identity of the person or entity involved. The report also noted that North Korea's premier animation house, April 26 Animation Studio, has previously worked on international projects and is under sanctions. The researchers assessed with high confidence that the animation contracts had been outsourced to North Korea by a front company in China.
RISK
BlackRock triples spending on home security for Larry Fink
BlackRock, the world's largest asset manager, has spent nearly $800,000 on security for its CEO, Larry Fink. The company has faced a backlash over its ESG investment push but also for its perceived lack of action on decarbonisation, prompting the increased security measures. The expenses included $564,000 for upgrading security systems at Fink's home and $217,000 for bodyguards.
ECONOMY
Western financial firms hit by China's economic slowdown
Just a few years ago, Western financial firms were expanding in China to take advantage of its booming economy. However, as doubts grow about China's economic recovery and its markets lag global peers, these firms are now facing a hit on their earnings and scaling back their ambitions. Fidelity International Ltd, Morgan Stanley, and Legal & General are among the companies that have cut China-focused jobs or shelved expansion plans. The souring of China's allure for Western financial firms comes at a time when Beijing is trying to attract more foreign capital. The decline in China-related deals and revenues has led to staff reductions and lower revenues for investment banks. Despite the challenges, many firms are expected to continue operating in China, betting on the country's economic rebound.
TAX
South Korea's inheritance tax faces revision after election
Some of the richest people in South Korea may be among the biggest losers from elections earlier this month that all but ended a proposal to cut one of the highest inheritance tax rates in the developed world. President Yoon Suk Yeol had been looking to reduce the levy, a move that requires parliamentary approval, but his conservative People Power Party suffered in the vote that saw it lose seats in the body. Meanwhile, the main opposition bloc increased the size of its majority and is looking to have wealthy individuals and sprawling conglomerates — known as chaebol in South Korea — pay more in taxes. 
INTERNATIONAL
EU lawmakers set to vote on banning products made with forced labour
European Union lawmakers are set to vote on a new law that aims to ban products made using forced labour. Although the law does not explicitly mention China, many lawmakers hope it will be used to block imports from the region in the country where the Uighur Muslim minority lives. Human rights groups have reported widespread abuses in China's Xinjiang region, including forced labour and forced sterilisation. The law, once approved by the EU's 27 member states, will give the European Commission the power to investigate supply chains outside the EU suspected of using forced labour. If proven, the products will be seized at the borders and withdrawn from the European market. The EU will also create a database to assess forced labour risks. Critics argue that the law falls short of the one adopted by the US, which banned the importation of products from Xinjiang unless businesses could prove they were not involved in forced labour.
Dutch cities divided over WFH plan for sex workers
Cities in the Netherlands are divided on whether sex workers should be allowed to work from home. Sex work has been legal in the Netherlands since 2000, and a few regions have allowed sex workers to operate independently from home. The government is now seeking to regulate the sector to reflect the increase in home-based and online work. Sex workers would be required to meet strict conditions to receive a permit from their local authority. But many Dutch regions are not happy with the prospect of working from home in the industry. A poll of 150 municipalities by Nos, the Netherlands' largest news organisation, found many thought it would be a "nuisance" for local residents. "If sex work takes place in the private sphere, it is difficult to gain insight into possible abuses," a representative for the municipality of Kaag en Braassem in South Holland told Nos. The city of Tilburg told Nos: "Unlicensed sex workers actually become more vulnerable to coercion, violence and blackmail."
UK's TUC calls for AI to be regulated in the workplace
The UK's Trades Union Congress (TUC) has warned that Britain is failing to keep up with the regulation of AI in the workplace, leaving workers vulnerable to exploitation and discrimination. It has proposed a legal blueprint for regulating AI, including a legal duty for employers to consult trade unions on the use of high-risk and intrusive forms of the technology. Other countries such as the US, China, and Canada are already implementing new laws for the use of AI. TUC assistant general secretary Kate Bell said: “UK employment law is simply failing to keep pace with the rapid speed of technological change. We are losing the race to regulate AI in the workplace. AI is already making life-changing calls in the workplace, including how people are hired, performance managed and fired. We urgently need to put new guardrails in place to protect workers from exploitation and discrimination. This should be a national priority. Other countries are regulating workplace AI – so that staff and employers know where they stand. The UK can't afford to drag its feet and become an international outlier.”
OTHER
Human-pet dog patrol teams to start duties in Seoul
A total of 1,424 human-pet dog patrol teams will start their duties in Seoul this week, joining in efforts to prevent crimes and safety risks in neighborhoods across the capital. The civil patrol program launched by the city government in 2022 encourages designated pet dog owners and their animals to watch for and report any suspected crimes or other safety risks to authorities while they go for walks in their neighborhoods. Last year, 1,011 teams were in operation, which together filed 331 police reports and 2,263 safety or inconvenience risk reports during their 48,431 patrol walks. "With the domestic population of pet owners reaching 15 million, the pet dog patrol unit is a new policy that can help prevent crimes and safety risks," said Mayor Oh Se-hoon.
 


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