[Exclusive] Even 'Nakhasan' Dominated by Men... Widening Wage Gap Among Public Institution Executives [K Population Strategy]

Permanent Executive Pay Gap Up 3.65%P
Male-Dominated and Parachute Practices Increase Gap
Slow Progress on 'Executive Target System' in Each Ministry
"Mandatory Female Directors System Needed in Public Institutions"

The glass ceiling remained firm even in public institutions. The gender wage gap among executives in public institutions is actually increasing. With the male-dominated placements unchanged and the continuation of the administration's 'parachute' appointments, the average wage gap between genders in senior positions is widening.

According to data obtained by Asia Economy on the 18th through ESG evaluation specialist company DoESG, the average wage gap between male and female full-time executives in 361 public institutions last year was 10.95%, up 3.65 percentage points from 7.30% in 2019. By institution, Jeju National University Hospital showed the highest average wage gap among full-time executives last year at 31.17%. When male full-time executives earned 1 million KRW, female full-time executives earned about 700,000 KRW. This was followed by the National Pension Service (29.47%), Jeonbuk National University Hospital (17.65%), and Korea National Arboretum (11.11%).

This analysis was conducted based on five years of data from 2019 to 2023 (up to the third quarter) for 361 of the 362 institutions disclosed on the public institution management information disclosure system Alio. The Overseas Koreans Foundation, which was separated into the Overseas Koreans Office and Overseas Koreans Center last year, was excluded from the analysis.

Full-time executives in public institutions are senior public officials subject to asset disclosure and consist of full-time institution heads, full-time directors, and full-time auditors. In large public enterprises, full-time institution heads correspond to ministers or first-grade public officials, and full-time directors and auditors also correspond to first-grade public officials in major institutions.

Full-time Executives Composed Only of Men, Growing Wage Gap

It was also pointed out as a problem that many so-called parachute appointments exist among full-time executives in public institutions, who are senior public officials. In fact, a significant number of full-time executives in public institutions come from political backgrounds. Political appointments are often based on personal connections, academic ties, and regional affiliations, and most are male.

Looking at major institutions with a high wage gap between male and female full-time executives, it is difficult to find women among past chairpersons (directors). In the National Pension Service, which had the second-highest average executive wage gap last year, all 18 past chairpersons since the inauguration of the first chairperson, Jang Won-chan, in 1987 have been men. KDB Industrial Bank, which recorded the lowest wage gap among financial institutions, has had no female chairpersons or presidents since its establishment in 1984.

The persistent glass ceiling in both public and private sectors also had an impact. According to Alio data, the proportion of female executives (769) among all executives (full-time and non-full-time, 3,595) in public institutions last year was only 21.39%. The proportion of female executives has remained in the 22% range since disclosures began in 2020 but dropped to the 21% range last year. Moreover, about 90% of these are non-full-time directors, and full-time executives, including institution heads, account for less than 10%.

Looking at private companies, the proportion of women decreases as one rises to executive positions, and the number sharply declines among top executives such as CEOs. In the 'Gender Equality Comprehensive Score' data analyzed earlier by Asia Economy based on the top 100 listed companies by sales, only five corporations had inside directors with decision-making authority over company policies. (▶Related article: Gender Equality in Top 100 Companies: Naver First, HDC Hyundai Development Lowest [K Population Strategy])

An employee of the Korea Credit Guarantee Fund said, "The first female head at the executive level appeared two years ago," adding, "Inside, male supervisors criticized it, saying it seemed like a female quota was assigned." He continued, "I believe female executives will increase in line with the times, but currently, there are almost no women among executives."

An employee of the Korea Development Bank also explained, "There are still almost no women among executives or deputy governors," adding, "That can definitely be seen as a glass ceiling."

‘Gender Equality’ Goal Fades with Change of Administration

In 2017, the government established a five-year plan as a national agenda to enhance female representation in the public sector, setting a goal to increase the proportion of female executives in public institutions to 20% by 2022. In 2020, through a five-year plan for the 'Gender Equality Executive Appointment Target System,' public institutions were required to report annually to the government on the target proportion of female executives (institution heads, full-time audit committee members, full-time and non-full-time directors).

Although the current administration continues to release figures, there are criticisms that the pace of promoting gender equality in public institutions has slowed with the change of government. The Moon Jae-in administration adopted the 'Gender Equality Wage Disclosure System' as a national agenda but only completed the preparatory conditions. The Ministry of Personnel Management announced in the '2023 Public Sector Integrated Personnel Annual Report' released last year that the targets for the proportion of female executives and female managers were exceeded by 2022, but detailed statistics were not disclosed.

The only policy proposed by the Yoon Suk-yeol administration to eliminate gender gaps is the 'Gender Labor Disclosure System,' promised during the presidential election and planned to be introduced from last year. This system requires disclosure of the gender ratio by occupation, rank, and job, starting with a pilot in the public sector and eventually mandating it for companies. However, although 2023?the proposed introduction year?has passed, the mandatory labor disclosure is effectively stalled. Only Seoul City has been independently disclosing the wage gap by rank, occupation, and years of service by gender for its affiliated investment and funded institutions (22) on its website since 2019.

Bae Jin-kyung, head of the Korean Women Workers Association, criticized the current administration's labor disclosure system, saying, "Based on the information disclosed on Alio, it cannot be considered that wage disclosure is being done," and added, "The promise that private companies would 'voluntarily' disclose under the Gender Labor Disclosure System pledge is essentially a way of not mandating it."