Average Monthly Income: Men 3.47 Million KRW, Women 2.25 Million KRW... Large Corporations Enter 5 Million KRW Range

Gender Income Gap Reaches 1.22 Million Won
Poverty Wage Workers Share at 20.4%, Down 0.4%p from Last Year

[Asia Economy Reporter Kim Hyunjung] The average monthly income of wage workers in South Korea in 2018 was recorded at 2.97 million KRW, showing an increase of 100,000 KRW compared to the previous year. For men, the average was 3.47 million KRW, while for women it was 2.25 million KRW, with an income gap by gender exceeding 1.2 million KRW. The average monthly income of workers in large corporations rose by 130,000 KRW from the previous year, surpassing 5 million KRW for the first time.

According to the '2018 Wage Worker Income Results by Job' released by Statistics Korea on the 22nd, the average monthly income of wage workers in 2018 was 2.97 million KRW, and the median income was 2.2 million KRW, each increasing by 100,000 KRW (3.4%, 4.6%) from the previous year. The average monthly income refers to wages excluding non-taxable income from earned income. The median income is the income of the person positioned exactly in the middle when wage workers are lined up by income. By income bracket, 28.9% earned between 1.5 million and less than 2.5 million KRW, the largest group; 16.3% earned less than 850,000 KRW; and 15.4% earned between 2.5 million and less than 3.5 million KRW.

The proportion of 'poverty' wage workers whose average monthly income is less than 50% of the median income was 20.4%, down 0.4 percentage points from the previous year. The Organisation for Economic Co-operation and Development (OECD) defines poverty as having disposable income less than 50% of the median income. On the other hand, wage workers earning between 50% and less than 150% of the median income increased by 1.2 percentage points to 49% compared to last year. Regarding this, Park Jinwoo, head of the Administrative Statistics Division at the Statistics Data Hub of Statistics Korea, explained, "Although slight, there was an improvement effect in income distribution."

The income gap by gender slightly narrowed compared to the previous year but remained significant. In 2018, the average income of female wage workers was 2.25 million KRW, up 120,000 KRW (5.5%) from the previous year, while the average income of male wage workers was 3.47 million KRW, an increase of 90,000 KRW (2.7%). The average income of female wage workers was 64.8% of that of males. The median income was 2.69 million KRW for men and 1.8 million KRW for women.

By age group, income was highest in the order of 40s (3.65 million KRW), 50s (3.41 million KRW), 30s (3.22 million KRW), 20s (2.06 million KRW), 60 and above (2.02 million KRW), and under 19 (780,000 KRW). The average income gap between men and women by age group was largest in the 50s at 1.96 million KRW, followed by 40s at 1.6 million KRW, 60 and above at 1.22 million KRW, 30s at 700,000 KRW, 20s at 170,000 KRW, and under 19 at 110,000 KRW. The highest average income by age for men was in their 40s (4.27 million KRW), and for women, it was in their 30s (2.79 million KRW).

By company size, the average income of workers in large corporations was 5.01 million KRW, small and medium enterprises (SMEs) was 2.31 million KRW, and non-profit organizations was 3.27 million KRW. Large corporations saw an increase of 130,000 KRW (2.6%) from the previous year, while SMEs and non-profit organizations each rose by 80,000 KRW (3.7%, 2.5%). The average income of wage workers employed at companies with fewer than 50 employees was 2.11 million KRW, 2.92 million KRW at companies with 50 to fewer than 300 employees, and 4.15 million KRW at companies with 300 or more employees.

By industry, the electricity, gas, steam, and air conditioning supply sector had the highest average income at 6.19 million KRW, followed by finance and insurance at 6.17 million KRW, and international and foreign organizations at 4.2 million KRW. The industry with the lowest average income was accommodation and food services at 1.32 million KRW, with business facility management, business support, and rental services (1.89 million KRW) also among the lower-income industries.

Based on length of service, workers with 20 or more years of service had an average income of 7.35 million KRW, while those with less than one year of service earned 1.69 million KRW on average.