Minister of Knowledge Economy Choi Joong-kyung, who has made several stern comments about large companies’ practices, once again earned the ire of the country’s business community on Sunday.

This time, the minister’s remarks were aimed at executives and their huge paychecks, ruffling the feathers of those running some of Korea’s largest corporations.

“Large companies only favor experienced workers and pay their management too much,” Choi said in his speech to the Federation of Korean Industries on Sunday. He added that companies should cut executives’ pay and invest in the younger generation of workers to prepare for the future.

According to Chaebul.com, a local website specializing in information on conglomerates, chief executives of Korea’s top 100 companies earned on average 1.7 billion won ($1.6 million) last year. The figure includes the salary, dividends and profits made from selling shares granted to them as stock options.

However, this is not the first time that the minister has sounded off on large companies and their management practices.

Late last month, Choi sent a book on the subject of shared-growth and a letter to the heads of local conglomerates.

In the letter, Choi said that gains made by cutting the contract fees with smaller firms should not be included in the performance review of executives.

The letter, which the ministry said was aimed at highlighting the need for shared-growth and the necessity of the top businessmen’s attention to dealings with smaller companies, was a more mildly phrased follow-up to remarks made in April.

In a speech given on April 13, Choi had used much stronger words, saying that near-retirement age executives who are seeking bonuses by forcing contract fees down should be dismissed.

Choi’s remarks, however, do not seem to be sitting well with local businesses.

Officials at local firms, who declined to be named, said that while Choi’s remarks may have some logic, the amount a company pays its executives reflects the company’s performance, and that unlike the minimum wage issue, executive salary is not a direct concern of the government.

He also said that while executives do get much larger stock options, some companies have given ordinary employees shares as part of bonuses.

Such companies include Hyundai Motor Co. and Kia Motors Corp., which threw in up to 120 shares in recognition of strike-free negotiations and high performance figures.

By Choi He-suk  (cheesuk@heraldcorp.com)