Chances of becoming a corporate executive in Korea drop below 1%
Ryu Seung-ryong portrays Kim Nak-su in the JTBC drama “The Dream Life of Mr. Kim.” Courtesy of JTBC
The odds of becoming a corporate executive in Korea continue to shrink. That raises the question: Would Kim Nak-su, the old-fashioned yet sympathetic protagonist of the hit K-drama "The Dream Life of Mr. Kim," ever have a shot at joining the executive ranks of a major company? According to a new survey, the likelihood of reaching an executive position is now below 1 percent.
According to an analysis released Tuesday by the Korea CXO Research Institute, the top 100 Korean firms employ a combined 861,076 workers, up 1.4 percent from a year earlier.
Over the same period, the number of nonregistered executives fell 1.5 percent from 7,135 to 7,028. The findings are based on semiannual reports submitted this year by the top 100 listed companies by revenue in 2024.
With the number of employees growing and executive positions shrinking, each executive at a top 100 company now supervises an average of 123 workers. Executives, therefore, make up just 0.82 percent of the workforce, highlighting the steep competition for the upper ranks.
The executive share, which fell from 0.95 percent in 2011 to 0.76 percent in 2021, edged up to 0.84 percent last year before dropping again this year by 0.2 percentage points. This suggests that earning an executive title has become even more difficult.
Among the four major conglomerates, the number of employees per executive increased across the board.
Samsung Electronics rose from 110 last year to 117 this year. Hyundai Motor climbed from 143 to 152, LG Electronics from 116.1 to 116.2, and SK hynix from 164 to 166. All four companies reported higher thresholds for executive promotions compared with last year.
Executive promotion odds varied by industry. The securities sector showed the lowest level of competition, with one executive for every 39 employees. It was followed by trade at 54, insurance at 76, petrochemicals at 76, food manufacturing at 97 and construction at 98.
Hike in retirement age may accelerate executive reductions
On the other end of the spectrum, distribution companies offered the lowest chances of reaching an executive role, with just one executive for every 331 employees, largely due to the sector’s high proportion of retail staff.
Oh Il-sun, head of the Korea CXO Research Institute, said the average tenure of executives at major Korean companies is just over two years and that generational turnover is accelerating.
He said, “If extending the retirement age to 65 becomes a reality, companies will likely further reduce the number of executives and reorganize around key functions in order to manage labor costs and organizational efficiency.”
He added that developing specialized skills may be more advantageous for employees than competing for limited executive positions.
This article from the Hankook Ilbo, the sister publication of The Korea Times, is translated by generative AI and edited by The Korea Times.