South Korea’s central bank, the Bank of Korea, is warning that unusually large bonuses paid to employees at major chipmaking firms may be contributing to upward pressure on inflation. Multiple reports describe how rapid wage growth tied to performance bonuses is increasing household purchasing power and consumer demand. The Bank of Korea says this could intensify price pressures and raise the risk of a “wage-price spiral,” in which higher wages lead to higher consumer spending, which in turn pushes prices higher and can encourage further wage increases. The concern centers on whether bonus-driven pay gains are sustaining demand faster than prices can stabilize, complicating the central bank’s efforts to manage inflation through monetary policy. While the reports focus on chip industry bonuses as a key factor, they characterize the issue as part of broader inflation dynamics in the country rather than an isolated event. The bank’s stance indicates heightened attention to labor-market developments and corporate compensation trends as potential drivers of inflation in the near term.