Pay Gap Widens Between Big and Small Businesses

The wage gap between big businesses and small and mid-sized companies has widened noticeably over the last decade.

The Korea Labor Institute said average monthly wages in SMEs dwindled in proportion from 59.8 percent in 2004 to 56.7 percent last year. That means their staff make only W567,000 for every W1 million their counterparts in big businesses take home (US$1=W1,105).

The average salary in big businesses rose from W2.38 million to W3.6 million over the period, but in smaller firms only from W1.42 million to W2.04 million.

Temporary workers in SMEs, meanwhile, make just 40.7 percent of the salary of regular staff in big businesses, down from 41.6 percent in 2004.

And while hourly pay in big firms rose 65.8 percent from 2004 to 2014, in small businesses it increased only 43.1 percent.

Kim Bok-soon at the institute said, "Last year, only 533,000 more people found jobs, and 78 percent of them were with smaller firms. It's vital to look for ways of improving working conditions in small businesses."

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