There Was a Reason for the 'Medical School Concentration'... Doctors' Income Rises Four Times Faster Than Lawyers'

Continuous Upward Trend... Average Income Up 55% Over 7 Years
Significant Gap Widens Compared to Other Leading Professionals and Lawyers
Highest Wage Growth Among OECD Countries

Income of doctors, considered a representative high-income profession, has continued to rise recently. It has increased at a faster pace compared to other professionals such as lawyers and stands out internationally as well.

According to the National Tax Service and related authorities on the 29th, the average income in the medical industry (doctors, Korean medicine doctors, dentists) was 269 million KRW in 2021. This represents an increase of 96 million KRW (55.5%) over seven years compared to 173 million KRW in 2014, when related statistics began to be compiled.

Except for 2020, their income increased by more than 10 million KRW annually, with the growth rate also accelerating. During the COVID-19 pandemic in 2021, income rose by 34 million KRW compared to the previous year. According to tax law, income amount is calculated by subtracting necessary expenses from revenue, applicable to private practitioners who file separate comprehensive income.

Compared to other domestic industries, doctors’ high income is prominent. Based on the 2021 comprehensive income tax filings by the National Tax Service, the medical industry ranked in 16 out of the top 20 industries with the highest average business income.

[Image source=Yonhap News]

As a result, the concentration on medical fields guaranteeing stable high income has long been prominently evident in the private education sector as well. According to recent education reports, medical school preparatory classes for elementary and middle school students are increasing mainly in Gangnam-gu, Seoul. Entrance exams are required to join these small elite academies with fewer than 10 students, and competition rates reportedly reach up to 10 to 1.

Compared to another representative professional occupation, lawyers, doctors’ business income increased more than four times faster over seven years. The average income in the legal profession rose from 102 million KRW in 2014 to 115 million KRW in 2021, an increase of 13 million KRW (12.7%). This growth rate is about one-fifth that of the medical industry. While lawyers’ income was 60% of doctors’ in 2014, the gap widened to 40% by 2020.

This can be attributed to the rapidly increasing number of lawyers each year, whereas the number of doctors is limited due to a frozen quota for medical school admissions and other market restrictions. The medical school quota, including regular admissions, special admissions, and transfers, was 3,507 in 2000. This number decreased to 3,253 in 2003, 397 in 2004?2005, and 3,058 in 2006, and has remained unchanged for 17 years.

On the other hand, the number of lawyers surged rapidly after the judicial examination was replaced by the lawyer qualification exam in 1995 as part of judicial reform, and the introduction of the law school system in 2007. Since 2009, when 25 law schools nationwide opened, about 1,500 lawyers have been produced annually.

As a result, the number of medical industry business income filers increased by 13% (8,806 people) from 67,867 in 2014 to 76,673 in 2021, while the number of legal profession income filers rose by 42.4% (1,873 people) from 4,419 to 6,292 during the same period.

The income growth trend of Korean doctors is also rapid among OECD member countries. Analyzing the OECD’s ‘Health Statistics 2023’ and other data, the annual wage income of salaried specialists in hospitals and clinics in Korea increased by 42% from $136,104 in 2010 to $192,749 in 2020.

Accordingly, Korean salaried specialists’ wage income, ranked 5th among OECD countries in 2010, rose to the highest level. The Netherlands ($192,264), Germany ($188,149), Ireland ($165,727), the United Kingdom ($155,419), and Denmark ($151,150) followed Korea.

Excluding some member countries such as the United States and Japan, which were omitted due to lack of data, Korea ranked 7th in wage increase over 10 years, following Hungary (275%), Chile (130%), Estonia (98%), Slovakia (80%), the Czech Republic (76%), and Iceland (61%).

However, considering that Hungary ($31,624), Chile ($57,834), Estonia ($39,190), Slovakia ($35,267), the Czech Republic ($46,187), and Iceland ($92,088) started from annual salaries below $100,000, Korea’s wage increase can be regarded as among the highest worldwide.

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