SKT Followed by Naver and NCSoft... IT Companies Ushering in the 'Average Annual Salary of 100 Million Won' Era

[Asia Economy Reporter Eunmo Koo] As non-face-to-face businesses prosper due to the impact of COVID-19, the number of companies in the IT industry joining the "average annual salary of 100 million KRW" club is increasing.

According to the business report disclosed on the Financial Supervisory Service's electronic disclosure system (DART) on the 21st, Samsung Electronics' average employee salary last year was 127 million KRW. This is the highest level in the IT industry, and Samsung Electronics has maintained an average annual salary of over 100 million KRW for eight consecutive years since 2013. Competitor LG Electronics recorded 86 million KRW.

In the telecommunications industry, SK Telecom also exceeded an average annual salary of 100 million KRW for two consecutive years. According to SK Telecom's business report, last year's average salary was 121 million KRW, a 4.3% increase from the previous year. This is more than 30 million KRW higher than competitors KT and LG Uplus.

Earlier, the SK Telecom labor union officially raised concerns that despite operating profit growing by 21.8% to 1.3 trillion KRW last year, the performance bonus for last year decreased by about 20% compared to the previous year. In response, SK Telecom labor and management agreed to pay an encouragement bonus of 8 million KRW to all employees and improve the performance bonus payment criteria, resolving the conflict for the time being.

Last year, KT's average salary per employee was 88 million KRW, a 3.5% increase from 85 million KRW in 2019. KT has maintained the 80 million KRW range for four consecutive years since 2017, showing a steady upward trend. LG Uplus recorded 79 million KRW, a slight decrease of 1.2% compared to 80 million KRW in 2019.

The internet and gaming industries are also experiencing a wave of salary increases. Last year, Kakao's average employee salary was 108 million KRW, a 35% increase from the previous year. Kakao explained, "The total salary amount includes salary, bonuses, and stock options," adding, "It seems that the exercise of stock options had a significant impact last year."

Naver also surpassed an average annual salary of 100 million KRW. Last year, Naver's average salary was 102.47 million KRW, about 20 million KRW higher than 84.5 million KRW in 2019. The average annual salary per person is calculated by dividing the total annual salary, incentives, and various allowances by the average monthly number of employees. Naver had 700 mid-year hires last year, twice as many as in 2019, so the actual total compensation amount and growth rate are estimated to be higher.

NCSoft also recorded an average annual salary of 105.49 million KRW last year. NCSoft has dramatically increased the regular annual salary for all employees this year, and next year's salary is expected to rise further. For development positions, the increase is 13 million KRW plus α, and for non-development positions, 10 million KRW plus α. The company abolished the college graduate starting salary system and set the starting salary for new public recruitment employees hired this year at 55 million KRW for development positions and 47 million KRW for non-development positions. Additionally, the salary cap for new employees was removed, making it possible for capable employees to earn salaries in the hundred million KRW range.

Recent salary increases in the IT industry reflect the changing industrial landscape in the COVID-19 era. Previously, the top average salaries were held by financial sector workers. As of 2019, the average salary of employees at Korea's top 500 companies was 79.2 million KRW. Among them, 33 companies had average salaries exceeding 100 million KRW, mostly in financial holding companies, securities, and petrochemical industries. However, the IT and gaming industries are expected to continue their advancement. Amid the COVID-19 crisis last year, non-face-to-face businesses prospered, and the profitability of the IT and gaming industries is expected to continuously improve going forward.

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