Corporate Employees Earn 10 Million Won More Than SME Workers

JobPlanet Publishes Salary Analysis Report... 8.5 Million KRW Difference in Entry-Level Base Pay

[Asia Economy Reporter Kim Cheol-hyun] Last year, employees working at large corporations earned on average more than 10 million KRW higher annual salaries than those working at small and medium-sized enterprises (SMEs). Although the average base salary difference between new hires at large corporations and SMEs was around 8.5 million KRW, the gap widened as years of service increased.

On the 16th, job review platform JobPlanet (CEO Hwang Hee-seung and Yoon Shin-geun) announced this in its '2019 Salary Analysis Report,' which compiled salary information submitted throughout last year. This is the first report published by JobPlanet this year, analyzing 211,978 meaningful salary records submitted last year. The report categorizes base salary information by region and company type, presenting average salaries, median salaries, as well as 25th and 75th percentile salaries from the most active hiring year (1st year) through the 13th year.

According to the report, the average base salary of employees working at large corporate groups was 44.58 million KRW. In contrast, the average base salary for employees at SMEs was 34.33 million KRW, showing a difference of over 10 million KRW. For first-year employees, the average base salary at large corporate groups was 36.68 million KRW, while SMEs paid 28.15 million KRW, a gap of about 8.5 million KRW, which widened with increasing years of service. The largest gap was observed at the 10th year, where employees at large corporations earned an average base salary of 56.27 million KRW, 10.71 million KRW higher than the 45.56 million KRW at SMEs. However, the gap slightly narrowed thereafter to 10.15 million KRW at the 11th year, 9.47 million KRW at the 12th year, and 9.24 million KRW at the 13th year. Kim Ji-ye, director at JobPlanet who authored the report, stated, "Some ventures and startups classified as SMEs have salary tables comparable to those of large corporate groups. Since patterns can vary depending on detailed company types and industries, it is necessary to understand these differences when applying the data in practice."

Additionally, the average base salary at foreign companies was 40.9 million KRW, and at non-profit organizations, it was 37.45 million KRW. By region, Ulsan recorded the highest average base salary at 41.18 million KRW, while Jeju had the lowest at 30.45 million KRW. Seoul's average was 38.52 million KRW. Director Kim explained the reason for publishing the report: "While 3 million people use JobPlanet monthly to make better decisions, there are not many HR practitioners with reliable salary information to refer to." The cost of purchasing salary analysis reports available on the market is high, and even those reports contain limited information on domestic companies, making them less applicable to many firms.

In response, JobPlanet plans to launch a service that allows HR managers to examine varying compensation conditions and trends across industries. This service, which will provide comprehensive information on compensation including salaries, is expected to include base salary data by years of service for roles within industries, analysis information estimating average bonus amounts and payment frequencies among peer companies, and levels of cash-equivalent welfare benefits such as welfare points.