Korean Average Wages in OECD Mid-Range... "Wage Growth Slower Compared to Economic Growth"

Last Year, South Korea's Average Wage Was $42,300

The Committee for Measures Against Overwork Deaths of Delivery Workers and the National Delivery Solidarity Union held a press conference on the 7th in front of the National Assembly in Yeouido, Seoul, to commemorate seven delivery workers who died from overwork and to urge the deployment of sorting personnel before Chuseok. They then proceeded with a vehicle parade. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Onyu Lim] Last year, the average wage in South Korea was $42,300 (approximately 48,750,750 KRW), placing it in the middle tier among OECD countries. While the per capita Gross Domestic Product (GDP) increased by 116% over 16 years, the average wage growth rate remained at 32%, indicating that income growth is lagging behind economic growth.

Yang Kyung-sook, a member of the National Assembly's Planning and Finance Committee from the Democratic Party of Korea, announced on the 11th that an analysis of OECD data showed that last year, South Korea's average wage based on Purchasing Power Parity (PPP) exchange rates ranked 19th among 35 OECD countries, excluding Turkey and Colombia. This is the highest ranking since 2003, when it was $32,100 and ranked 24th among member countries.

Last year, the average wage among OECD member countries was $48,600. South Korea's average wage was 87% of the OECD average. In 2003, it was 75% of the OECD average wage ($42,800), rising by 12 percentage points over 16 years.

Looking at the annual average wage growth rate, South Korea's rate last year was 3.6%, exceeding the OECD average of 1.8%, ranking 7th among 35 countries. In 2003, South Korea's average wage growth rate was 3.6%, higher than the OECD average of 1.0%, ranking 7th among 35 countries. However, during the global financial crisis in 2008, it fell to -0.7%, lower than the OECD average of -0.2%, dropping to 29th place. Since then, it rose again to 3.2% in 2018, surpassing the OECD average of 1.0% and ranking 8th.

However, the pace of average wage growth in South Korea is relatively slow compared to economic growth. Comparing 2003 and 2019, South Korea's average wage increased by $12,000, a growth rate of 31.8%. During the same period, per capita GDP rose from $14,673 to $31,682, an increase of 115.9% ($17,009). Representative Yang pointed out, "Considering that the GDP size rose from $702.7 billion in 2003, ranking 10th among member countries, to $1.6422 trillion last year, ranking 8th, the increase in wage scale is slow compared to GDP growth."

Representative Yang stated, "Despite the COVID-19 crisis, economic growth has held up well, but there are concerns about wage reductions, wage arrears, and unemployment," and emphasized, "It is necessary to increase wage income commensurate with the economic scale that has grown to the upper ranks internationally." She added, "Efforts must be made simultaneously for income redistribution, reducing the gender wage gap, improving the long working hours culture, and qualitatively improving jobs for the elderly."

This content was produced with the assistance of AI translation services.