Wage Gap Between Large and Small Businesses Doubles... Income Inequality Widens

Statistics Korea 2021 Wage Status
Men's Wages 1.5 Times Higher Than Women's

In 2021, the average monthly pre-tax wage of office workers was 3.33 million KRW. Compared to the previous year, wages increased by 350,000 KRW in large companies and 80,000 KRW in small and medium-sized enterprises (SMEs).

According to the "2021 Wage Worker Job Income (Compensation) Results" released by Statistics Korea on the 28th of last month, the average monthly wage of wage workers in 2021 was 3.33 million KRW, a 4.1% (130,000 KRW) increase from the previous year.

On the 25th, as the morning temperature in Seoul dropped to 5 degrees, continuing the autumn chill, office workers near Yeouido Station in Seoul are seen wearing coats on their way to work. Photo by Kang Jin-hyung aymsdream@

The median income, which represents the midpoint of all wage workers' earnings, rose by 3.3% (80,000 KRW) from the previous year to 2.5 million KRW.

When classified by company size, large companies had the highest average wage at 5.63 million KRW, followed by non-profit organizations (3.35 million KRW) and SMEs (2.66 million KRW). The wage gap between SMEs and large companies is more than double.

The wage growth rate followed the same ranking. The year-on-year increase rates were 6.6% for large companies, 3.0% for non-profit organizations, and 2.9% for SMEs. The income growth rate for workers in large companies was the highest since the related statistics began in 2016, while SMEs recorded the lowest. While income for employees in large companies increased by 7%, SMEs saw only a 3% increase, widening the income gap.

By gender, male workers earned about 1.5 times more than female workers, with males earning 3.89 million KRW and females 2.56 million KRW. The average income increase from the previous year was also higher for males (180,000 KRW) than for females (90,000 KRW).

By age group, workers in their 40s earned the most at 4.14 million KRW, followed by those in their 50s (3.88 million KRW), 30s (3.61 million KRW), and 20s (2.40 million KRW), with those aged 60 and above earning the least at 2.25 million KRW.

The situation differed between men and women: men’s average income was highest in their 40s, followed by their 50s and 30s, whereas women earned the most in their 30s, followed by their 40s and 50s.