SC Jeil and Citi Bank Have the Largest Salary Gap Between Executives and Employees

Gwangju and Kookmin Bank Also Show a Gap of Over 200 Million KRW
Jeju Bank Has the Smallest Gap with a Difference of 52 Million KRW
Employee Salaries Similar... Executive Salaries Show Greater Differences Between Banks

The wage gap between executives and employees at SC Jeil Bank and Korea Citi Bank was found to be the largest among domestic banks. This is because, while the average annual salary of employees does not show a significant difference across banks, the salary gap among executives such as CEOs is substantial.

According to the semi-annual reports of 14 domestic banks on the 20th, SC Jeil Bank has the largest gap between the average compensation per executive (including CEO, auditor, outside directors, and non-registered executives) and employees, amounting to 317 million KRW. SC Jeil Bank is the only bank with a gap exceeding 300 million KRW. Following are Korea Citi Bank (290 million KRW), Gwangju Bank (219 million KRW), and KB Kookmin Bank (209 million KRW), all showing a gap exceeding 200 million KRW. Banks with a gap in the 100 million KRW range include Shinhan, Hana, Woori, Kakao Bank, iM Bank (formerly Daegu Bank), and Jeonbuk Bank. Banks with less than 100 million KRW gap are Gyeongnam Bank, Busan Bank, K Bank, and Jeju Bank. Jeju Bank has the smallest wage gap between executives and employees at 52 million KRW among banks.

Looking at the difference between the ranking of executive salaries and employee salaries, Gwangju Bank shows the largest difference with 8 ranks. While the average compensation per executive ranks 4th among the 14 banks, employee salaries rank 12th, placing them in the lower tier. Compared to other banks, executives receive higher salaries while employees receive lower salaries. This gap mainly stems from the difference in average executive compensation. The gap between the highest and lowest average employee salaries is 31 million KRW, but for executives, the difference is 282 million KRW.

The bank that pays the highest employee salary (excluding non-registered executives) is Korea Citi Bank, with an average of 73 million KRW. Following are Hana Bank (66 million KRW), SC Jeil Bank (62 million KRW), Busan Bank and Kakao Bank (61 million KRW), and Woori and Kookmin Bank (60 million KRW), all exceeding 60 million KRW. The banks with the highest executive salaries are the same as those with the largest wage gap between executives and employees. Executives at SC Jeil Bank (379 million KRW) and Korea Citi Bank (363 million KRW) receive an average salary exceeding 300 million KRW. Executives at Kookmin (268 million KRW), Gwangju (264 million KRW), Hana (245 million KRW), Shinhan (241 million KRW), and Woori (234 million KRW) generally earn over 200 million KRW.

Meanwhile, SC Jeil Bank and Korea Citi Bank also show a large average salary gap between men and women (not considering differences within the same rank). The gender wage gap at SC Jeil Bank and Korea Citi Bank is 27 million KRW. Other banks with a gap in the 20 million KRW range include Gyeongnam Bank (23 million KRW), Kakao Bank (22 million KRW), and Shinhan Bank (21 million KRW). Woori Bank has the smallest gender wage gap among the 14 banks at 11 million KRW. The bank where female employees receive the highest average salary is Hana Bank (60 million KRW). Following are female employees at Korea Citi, Busan, Woori, SC Jeil, Kookmin, and Kakao Bank, who earn salaries in the 50 million KRW range. Female employees at Gwangju Bank (39 million KRW), Jeju Bank (38 million KRW), and K Bank (35 million KRW) earn average salaries in the 30 million KRW range.

Compared to last year (first half), the bank that reduced the gender wage gap the most is iM Bank. Last year, iM Bank's gender wage gap was 18 million KRW, but this year it narrowed to 13 million KRW. On the other hand, the gap widened at K Bank, Jeonbuk Bank, and Korea Citi Bank. This year, K Bank's gender wage gap increased by 1 million KRW compared to last year (17 million KRW). Jeonbuk Bank's gap widened by 2 million KRW, and Korea Citi Bank's by 3 million KRW.