Value context and insight. lkm@koreatimes.co.kr
SME workers earn less than half of conglomerate employees
By Lee Kyung-min
By Lee Kyung-min
The salaries of workers at small and medium-sized enterprises (SMEs) were less than half of those made by employees at large conglomerates, data showed Wednesday.
Statistics Korea data showed SME workers' monthly salary averaged 2.31 million won ($1,985) in 2018, less than half of the 5.01 million won made by conglomerate workers in the same period.
Their median income was 1.88 million won and 4.25 million won, respectively.
Employees at SMEs saw their salaries increase 3.7 percent in 2018 from a year earlier, a greater hike compared to the 2.6 percent jump seen by large firm workers.
But this failed to have any meaningful statistical impact to narrow the income gap between the two groups.
Large conglomerate employees had an average work period of 7.9 years at their place of work, while SMEs workers had 3.1 years.
This is largely due to workers at small firms frequently quitting jobs for reasons including low wages and hard work compounded by comparatively harsh treatment.
Large firm workers, by contrast, tend to stay longer in their white-collar jobs for the reasons including higher compensation and a relatively safe working environment.
The income gap between the two peaked when they reached 50.
Large firm workers in their 50s had an average income of 6.63 million won, over double what their SME counterparts earned at 2.51 million won.
“The salary gap between the two groups has been consistent over the past few years. It is hard to say that last year had any statistically meaningful improvements,” a statistics official said.
Yonsei University economics professor Sung Tae-yoon said government action is required to fight against what seems to be a “permanent” inequality.
“Despite numerous previous government measures, the salary gap between the two does not seem to be narrowing, with more young university graduates seeking jobs at large firms. The government should find ways to reduce the growing mismatch,” he said.
The data also showed men earned more than women.
Men earned an average of 3.47 million won in 2018, but women made only 2.25 million won ― just 64 percent of their male peers average earnings.
The highest-paid industries included electrics, energy and steam power businesses which had an average income of 6.19 million won, followed by financial and insurance businesses (6.17 million won).
The lowest-paid industry was the lodgings and eateries business (1.32 million won), followed by maintenance and leasing (1.89 million won).