Monthly Average Wage Income Rises 4.1% to 3.09 Million Won... Wage Gaps by Company Size and Gender Widen Further

[Sejong=Asia Economy Reporter Kim Hyunjung] The average monthly pre-tax income of wage workers in 2019 was recorded at 3.09 million KRW. Although the overall income inequality level is improving due to factors such as the minimum wage increase, the wage gap between large corporations and small and medium-sized enterprises (SMEs) still exceeds twice the amount.

According to the "2019 Wage Worker Job Income (Compensation) Results" announced by Statistics Korea on the 24th, the average monthly income of wage workers was 3.09 million KRW, and the median income was 2.34 million KRW, rising by 120,000 KRW (4.1%) and 140,000 KRW (6.3%) respectively compared to the previous year. The median income is an indicator showing the income level at the exact middle when wage workers are lined up in order of income.

The proportion of middle-class wage workers, whose income is between 50% and less than 150% of the median income, increased by 1.4 percentage points to 50.4% compared to the previous year. This proportion exceeding 50% is the first time since the statistics began in 2016. The low-income group earning less than 50% of the median income accounted for 20.1%, and the high-income group earning 150% or more accounted for 29.6%, both showing a decrease compared to the previous year.

Although income inequality is evaluated to have improved due to factors such as the minimum wage increase, the wage gap between large corporations and SMEs still exceeded twice. The average monthly pre-tax income of large corporation workers rose by 140,000 KRW (2.9%) to 5.15 million KRW, while SME workers’ income increased by 140,000 KRW (6.1%) to 2.45 million KRW. The difference in average monthly income between large and SME employees was 2.7 million KRW, with SME employees earning less than half of large corporation employees, the same as one year ago.

Among large corporations, the highest proportion of workers (14.6%) earned between 2.5 million and 3.5 million KRW per month, while in SMEs, the largest group (33.6%) earned between 1.5 million and 2.5 million KRW. The proportion of workers earning over 10 million KRW per month was 7.6% in large corporations and 1.1% in SMEs.

By age group, the average income was highest among workers in their 40s at 3.81 million KRW, followed by those in their 50s (3.57 million KRW), 30s (3.35 million KRW), 20s (2.21 million KRW), 60 and older (2.07 million KRW), and under 19 (840,000 KRW). In large corporations, workers in their 50s earned the most at 6.76 million KRW, followed by those in their 40s (6.43 million KRW) and 30s (4.88 million KRW). In SMEs, the order was 40s (2.86 million KRW), 50s (2.64 million KRW), and 30s (2.64 million KRW). For workers in their 50s, the income gap by company size widened, with the average income in large corporations about 2.6 times that of SMEs.

By industry, the average income of wage workers was highest in electricity, gas, steam, and air conditioning supply (6.35 million KRW), finance and insurance (6.18 million KRW), and international foreign organizations (4.74 million KRW), while workers in accommodation and food service earned the lowest at 1.44 million KRW.

By gender, the average income gap between men and women widened compared to the previous year. The average income of male wage workers was 3.6 million KRW, about 1.53 times that of females (2.36 million KRW). During 2019, men’s income rose by 140,000 KRW (3.9%) and women’s by 110,000 KRW (5.1%), resulting in a gender gap increase of 20,000 KRW from the previous year, reaching 1.24 million KRW.

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