Korea Business Review · Section
K KNOWLEDGE DICTIONARY
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What is NRR (Net Revenue Retention) and Why It Can Exceed 100% Even When Customers Decrease
NRR is an indicator that tracks revenue changes within an existing customer cohort. Using Snowflake's 126% figure, this article explains the true definition of NRR and clarifies its differences from customer retention rate, GRR, and overall growth rate.
이지영 Editor · 09/26/2026
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Why Do Performance Evaluations Fail Even When Changed? 4 Conditions for Designing an Evaluation System Tailored to Our Organization
KBR경영연구소 · 09/23/2026
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What Is an Inclusive Wage System? The Standards for Overtime Pay Included in Monthly Salaries and Additional Payments
강지혜 Editor · 09/21/2026
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Why Book Value Drops While Inventory Remains Unchanged: Calculation and Application of Net Realizable Value
이지영 Editor · 09/17/2026
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How Much More Must We Sell at a 10% Discount? Why Profits Can Shrink Even When Sales Increase
이우리 Editor · 09/16/2026
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Why Working Capital Increases While Cash Remains Short
How net working capital differs from cash. Using calculation examples, it explains the composition of current assets and current liabilities, the timeline of accounts receivable, inventory, and accounts payable, and how to connect profit and loss with cash flow.
KBR경영연구소 · 09/15/2026
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Can We Put Company Secrets into ChatGPT? The Absolute Boundaries of Information You Must Never Tell AI
The protection level of information entered into generative AI depends on the terms of use, account settings, data retention policies, and corporate contract conditions rather than the model itself. Turning off training utilization in ChatGPT and Claude does not mean data is deleted instantly or the possibility of legal submission disappears. U.S. courts have also reached differing conclusions on the legal protection of AI-used materials, meaning AI conversations cannot be uniformly viewed as 'confidential.' Undisclosed financial information, personnel data, customer information, and contract terms should not be entered as-is into personal AIs, prioritizing de-identification and enterprise environments. Information with severe leakage damage—such as resident registration numbers, passwords, authentication codes, card numbers, and API keys—is safest not being entered into generative AI at all.
강지혜 선임기자 · 09/12/2026
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GDP Up 0.6%, GNI Up 3.1%: Why Do These Two Indicators Differ?
In the second quarter of 2026, real GDP rose 0.6% quarter-on-quarter, while real GNI increased by 3.1%. GDP measures domestic production, whereas GNI reflects the nation's real purchasing power, taking into account terms-of-trade and overseas income. A sharp 56.6% surge in the export deflator leading to massive real trade gains is the primary reason behind the gap between GDP and GNI. Nominal GDP jumped 26.4% year-on-year, but income growth was concentrated more heavily in gross operating surplus than in employee compensation. Consequently, export companies, domestic-market-focused businesses, and companies reliant on imported raw materials can experience vastly different business conditions despite the same macroeconomic indicators.
이태민 책임기자 · 09/09/2026
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What is the Difference Between Treasury Stock Cancellation and Dividends? Analyzing SK Hynix's 40 Trillion Won Plan
SK Hynix resolved on August 19, 2026, to acquire and subsequently cancel approximately 40 trillion won (about 3.3% of issued shares) of its own treasury stock in the open market, while raising its free cash flow (FCF) return target to '50% or higher.' While dividends distribute cash to all continuous shareholders without altering the share count, treasury share buybacks and cancellations provide cash only to selling shareholders while increasing the equity stake and EPS of remaining shareholders. Dividend income is subject to a 15.4% withholding tax and potential comprehensive financial income taxation (with temporary tax separation privileges for high-dividend companies from 2026 to 2028), whereas cancellation does not immediately trigger taxes for remaining shareholders. KB Financial Group's 1.02 trillion won cancellation in 2025 serves as an example combined with a fixed total dividend policy, structurally designed to automatically boost dividends per share through cancellation. The revised Commercial Act implemented in March 2026 mandates the cancellation of acquired treasury shares within one year in principle, making stock buybacks by domestic companies effectively contingent on cancellation.
강지혜 선임기자 · 08/21/2026
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Employment Contracts, Annual Salary Contracts, and the Labor Standards Act: Which Prevails?
Employment and annual salary contracts are agreements between parties, but they cannot fall below the minimum standards set by the Labor Standards Act (Articles 3, 4, and 15 of the Labor Standards Act). The minimum wage for 2026 is set at 10,320 won per hour (2,156,880 won per month), and contract provisions falling short of this are automatically voided, with statutory standards applying instead (Ministry of Employment and Labor Notice No. 2025-47). The hierarchy of documents runs from the Constitution to the Labor Standards Act, collective agreements, rules of employment, and employment contracts, but if a lower-level document contains more favorable conditions, that part prevails (Principle of Priority for Favorable Conditions, contrary interpretation of Article 97 of the Labor Standards Act). An annual salary contract is a separate agreement specifying or modifying wage conditions, but provisions violating mandatory regulations, such as an annual salary scheme including severance pay, are generally void (Supreme Court Full Bench Decision 2007Da90760 delivered on May 20, 2010). The Supreme Court Full Bench decision in December 2024 abolished the 'fixity' requirement in calculating ordinary wages, opening the way so that ordinary wage status cannot be excluded solely by a tenure-condition phrase in a contract.
박찬호 선임기자 · 08/12/2026
