[2025 Gender Equality Index] South Korea Ranks First in OECD Gender Wage Gap... Calls for Mandatory Disclosure

Solution to the Wage Gap
South Korea's 29.3% Gap in 2023
7 Percentage Points Higher Than Second-Place Japan

South Korea's gender wage gap is considered a chronic issue. The Organisation for Economic Co-operation and Development (OECD) compares the gender wage gap among its member countries each year, and since joining in 1996, South Korea has consistently ranked first. As of 2023, South Korea's gender wage gap stood at 29.3%, showing a significant difference compared to Japan, which ranked second at 22%. The OECD average is 11.3%, and the average among the 27 European Union (EU) countries is 9.4%. Excluding South Korea and Japan, no other country has a wage gap exceeding 20%.

There are various reasons for the gender wage gap. Soroptimist, an advisory body to the United Nations Economic and Social Council and the world's largest women's volunteer organization, identified five main causes: secondary work (household labor and caregiving responsibilities), barriers to career advancement, occupational segregation (gender-based job segregation), outdated equal pay legislation, and gender discrimination by employers.

The organization emphasized that, in addition to legal and institutional reforms to reduce the wage gap, it is especially necessary to alleviate the burden of household and caregiving responsibilities. Soroptimist stated, "It is important to ease the burden of household and caregiving responsibilities that limit women's career and income potential and to foster a culture where couples share these duties more equally." The organization also stressed, "To break traditional gender role stereotypes, it is essential to teach that housework is a shared responsibility regardless of gender."

Furthermore, there are increasing calls to strengthen the obligation to disclose gender wage data. The aim is to establish an institutional foundation that enables accurate identification of the causes of the wage gap. According to a report published by the National Assembly Research Service in December 2022, titled "Tasks for Introducing the Gender Disclosure System: Focusing on Comparisons Between Foreign Countries and South Korea," countries such as the United Kingdom, France, Germany, and Sweden have implemented systems that investigate and disclose gender gaps in employment and wages within companies.

In South Korea, legislation to introduce a similar system is currently underway. The "Five Gender-Equal Wage Disclosure Laws" (amendments to the Capital Markets Act, the Equal Employment Opportunity Act, the Framework Act on Employment Policy, the Act on the Management of Public Institutions, and the Local Public Enterprises Act), which were submitted to the National Assembly in March, stipulate the legal requirement for gender wage disclosure and specify detailed disclosure items to identify the causes and structure of the gap.

However, the actual possibility of these laws being enacted remains to be seen. The Korea Listed Companies Association expressed opposition, stating, "The purpose of the Capital Markets Act is to protect investors, and this is unrelated." Representative Shin Jangshik of the Rebuilding Korea Party, who proposed the bill, said, "There are numerous studies showing that the gender wage gap and diversity levels are closely related to productivity, performance, and stock prices." He added, "Gender-equal wage disclosure is the minimum measure required to comply with ESG management standards demanded by the global capital market."

Editor's NoteThe 'Asia Economy Gender Equality Index,' launched with the goal of reviewing the status of women's workforce utilization and gender equality efforts at major domestic companies and promoting work-life balance, marks its 10th anniversary this year. The Gender Equality Index has served as a catalyst for spreading a culture of inclusion and coexistence within companies. On the 10th anniversary of its introduction, Asia Economy has adjusted the evaluation criteria and methods and enhanced its analytical system to increase the objectivity and reliability of the index. As the value of sustainability and diversity grows, we hope the Gender Equality Index will continue to serve as a compass for companies.