Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
Average salaried workers earn $29,700 amid growing income disparity
People cross a street in downtown Seoul's Gwanghwamun, one of the country's most desenly populated business districts, Jan. 2. Korea Times file
By Yi Whan-woo
Salaried workers in Korea earns 41.23 million won ($29,700) on average each year, compared to 331.34 million won received by the top 1 percent income earners, data showed, Friday.
The data, compiled by the National Tax Service (NTS) and released by Rep. Ahn Do-geol of the main opposition Democratic Party of Korea (DPK), corresponds with a growing income gap in the country as it gets wealthier.
The data was based on an analysis of salaries received by a total of 20.53 million workers nationwide in 2022.
The total salaries amounted to 865.46 trillion won, which means each worker earned an average of 41.23 million won during the cited period.
Of the 20.53 million, those in the top 1 percent income bracket earned 331.34 million won.
“The finding shows a serious widening of social and economic polarization,” the lawmaker said.
Also a member of the National Assembly’s Strategy and Finance Committee, Ahn referred to little improvement in Koreans’ wellbeing despite the country’s growth in GDP per capita that is anticipated to surpass Japan’s.
In its updated world economic outlook, Tuesday, the International Monetary Fund (IMF) estimated Korea’s 2024 GDP per capita at $36,132, surpassing Japan’s $32,859.
For 2025, the IMF forecast Korea’s GDP per capita at $37,675, which is higher again than Japan’s $33,234.
The lawmaker assessed that income disparity is related to unbalanced economic growth by regions, with more than 50 percent of GDP coming from Seoul and the greater Seoul area.
The NTS data showed more than half of individuals in the top 1 percent income bracket had jobs in Seoul or the surrounding regions of Incheon and Gyeonggi Province.
In particular, the top 0.1 percent income earners in Seoul took 1.91 billion won in salaries.
The amount was more than twice as high as 811.19 million won received by top 0.1 percent earners in Gyeonggi Province, and 764.26 million won raised by those in the country’s second-largest city of Busan.