Average Salary in South Korea

The 13th biggest economy in the world had an average annual gross salary of 45,780,105 KRW in 2023, which equals 34,292.73 USD.

Therefore, South Korea’s average salary every month is 3,859,450.52 KRW (2,858.27 USD).

However, average salaries depend on many factors, such as industry, region, education, occupation, or gender. This article will tackle all of these so you can get a full picture.

Key takeaways:

• Average annual salary: 45,780,105 KRW (34,292.73 USD). Source: OECD
• Average monthly salary: 3.815 KRW (2,858.27 USD). Source: OECD
• Median salary: 3,500,000 KRW (2,603 USD). Source: Statistics Korea
• Minimum hourly wage: 9,860 KRW (7,35 USD). Source: Minimum Wage Council, Republic of Korea
• Gender pay gap: 27,7% in 2023. Source: Global Gender Gap Insight Report, 2024
• South Korea’s GDP grew by 5.7% annually between 1980 and 2023. Source: World Bank report
• South Korea’s gross national income (GNI) per capita increased from 67 USD in the 1950s to 33,745 USD in 2023. Source: World Bank report
• South Korea’s nominal GDP of 1.66 trillion USD in 2023 is expected to grow by 1.5% by 2025. Source: International Monetary Fund

Please note:

• All data in this article are based on official statistics and reports, such as Statistics Korea, the official statistics institute of South Korea, and OECD. All data is linked at the end of the article.
• The official currency of South Korea is the South Korean Won (KRW).
• All figures in the article are gross salaries.
• One South Korean Won equals 0.00075 USD when writing this article. Please double-check the exchange rate at the time of reading.

Average salary in South Korea

South Korea’s average salary is ranked in the 19th position among OECD members, according to the Korea Herald publication.

What’s more, according to the OECD, the average salary South Korea had in 2022 exceeded 90% of the average wage of the Organization for Economic Cooperation and Development. As mentioned above, South Korea has an annual average gross salary of 45,780,105 KRW (34,292.73 USD), with a monthly equivalent of 3.815 KRW (2,858.27 USD).

Median salary 

The median salary represents the central point of wage distribution in a given population or industry. In other words, the median salary shows a more realistic view of the typical earnings of a population, in this case, South Korean employees. The median wage, therefore, shows that 50% of the population of South Korea earns below the median, while the other half of the population earns above the median.

South Korea’s median wage is 3,500,000 KRW (~ 2,603 USD). Therefore, 50% of South Korean employees earn below 3,500,000 KRW per month, while 50% earn above this amount.

Minimum wage

The minimum wage in South Korea is set by the Minimum Wage Commission, part of the South Korean government. It is regulated each year on November, 30, under the s Minimum Wage Act. As of 2024, according to the Minimum Wage Council, Republic of Korea, the hourly minimum wage is 9,860 KRW (7.35 USD), 240 KRW more than in 2022. Hence, based on eight working hours, the daily minimum wage rate is 78,880 KRW.

This rate applies to all workers, regardless of their employment status or the size of the business. The government aims to balance fair compensation for workers with the economic impact on businesses, particularly small and medium-sized enterprises.

At the same time, the minimum wage is set by amounting for each industry category and the classification of workers.

Average salary by region

As in most countries, South Korea has regional variations and different average earnings depending on someone’s location. Someone living in major cities will have an average income highly different from a worker located in rural areas of South Korea.

As expected, Seoul, the capital and largest city in South Korea, has the highest wages (4,380,000 KRW = 3,500 USD) among all other cities, as it is the economic, political, and cultural heart of the country. Seoul hosts corporations from major industries and tech companies, but also competitive and higher wages to attract talent and high labor costs.

Here is a table summarizing the average monthly salaries in various South Korean cities, according to Salaryexplorer.com:

 Average salary by age

The below graph presents data on the average salary and range in South Korea by age group, from under 24 years old to 55 years and above. Unsurprisingly, the data shows that salaries generally increase with age, with the median wages following the below patterns:

• Rising from 2.7M KRW for those under 24 to 4.0M KRW for the 35-44 age group
• Slightly decreasing once reaching the age of 44 to 3.6M KRW for the 45-54 age group
• Decreasing even more to 3.4M KRW for those 55 and above.

The salary ranges also widen as age increases, with the 90th percentile salary growing from 4.3M KRW for the under 24 group to 7.5M KRW for the 45-54 age group. This suggests that while the median wage may plateau or slightly decrease for older age groups, there are still opportunities for high earners to continue increasing their salaries well into their careers.

Source: Graphic made by Paylab.com, data Paylab.com

 Average salary by education

It’s not a novelty that a highly skilled workforce determines a country’s more sustainable economic development and a more competitive job market. Employees in South Korea are highly competitive, and educational attainment is a stepping stone to South Korea’s highly desired economic growth.

At the same time, education determines whether employees earn higher or lower average salaries and their purchasing power. Salaryexplorer.com compared salaries across different education levels in similar job positions, and these are the key findings:

• Certificate/diploma holders: 17% higher earnings than high school graduates
• Bachelor’s degree holders: 24% more than certificate/diploma holders
• Master’s degree holders: 29% increase over Bachelor’s degree holders
• PhD holders: 23% higher salaries than those with Master’s degrees

Average salary by occupation

There is a significant disparity between the highest and lowest-paid positions in South Korea.

This wage gap highlights income inequality between white-collar and blue-collar jobs in South Korea. Data provided by Paylab.com suggests that positions requiring higher education, specialized skills, and management responsibilities are valued more highly and earn significantly higher salaries. Conversely, roles in education, healthcare, and manual labor are on the other side of the spectrum.

This disparity may be attributed to various factors, such as the supply and demand of skilled professionals, the perceived value of different industries, and the overall structure of the South Korean economy.

Highest paying jobs

The top-paying jobs are predominantly in upper management roles, with Chief Executive Officers earning the highest average monthly salary of 12,130,400 KRW, followed by Managing Directors at 10,752,200 KRW.

Other lucrative positions include IT Directors, Call Centre Directors, and Country Managers, all of which fall under the top management category and earn over 10 million KRW per month on average.

Lowest paying jobs

Conversely, the lowest-paying jobs in South Korea are primarily in the education, healthcare, and general labor sectors.

Nursery School Teacher Assistants earn the least, with an average monthly salary of 1,651,780 KRW, followed by Social Counselors and Medical Records Clerks in the Medicine & Social Care field, who earn around 1.8 million KRW per month.

Other low-paying positions include Porters, Tailors, Cleaners, and Seamstresses, all earning less than 2 million KRW monthly on average.

Gender gap

Though South Korea is among the top-rated reports with positive highlights, it can’t be said the same about the gender pay gap.

According to the OECD, employees in South Korea had one of the worst gender pay gaps among OECD countries in 2022, with women earning 68.8% of what men do. Therefore, in 2022, women were paid, on average, 30.7 % less than their male counterparts, while the OECD average in 2022 was 12.1%.

A survey by the Korean Women’s Development Institute showed that 54.7% of Korean women mentioned that in South Korea, the reason behind the country’s gender pay gap is that there is “accumulated gender discrimination in hiring, promotion, and placement in the organization.”

What’s more, the Global Gender Gap Insight Report, 2024 by the World Economic Forum, shows that in 2023, South Korean women had a labor force participation rate that is 17.32% below their male counterparts.

The same report shows that in 2023, the gender pay gap in South Korea decreased below 30% for the first time to 27.7%.

Salary growth trends

South Korea’s economic success story, often known as the “Miracle on the Han River,” following the Korean War (1950–1953) is a testament to the country’s remarkable transformation. Its remarkable success, led by industrial growth and technological advancements in just a few decades, resulted in better economic conditions and considerable poverty reduction.

According to a World Bank report, South Korea’s GDP grew on average by 5.7% annually between 1980 and 2023. The same report shows that Korea’s gross national income (GNI) per capita increased from 67 USD in the 1950s to 33,745 USD in 2023.

This rapid growth was driven by strategic investments in education, infrastructure, and export-oriented industries, such as electronics, automotive, and shipbuilding. The country’s highly skilled workforce and focus on technology have been key factors in its economic success.

However, South Korea needs to navigate and address income inequality, support vulnerable workers, and foster inclusive growth, as all these priorities have a critical nature for the country’s hard-earned prosperity.

Interesting labor market facts about South Korea

• Highly skilled workers: South Korea is known for its employees, who have a technological edge that leans towards innovation. At the same time, South Korea is one of the top countries globally in terms of investment in research and development (R&D), with a heavy focus on innovating in technology, electronics, and biotechnology.
• High labor participation in manufacturing: Manufacturing and heavy industries, particularly in the electronics and automotive sectors, are vital to South Korea’s economy and account for a large portion of employment. Hence, South Korea is the place for highly skilled workers in these industries, as it is home to Samsung, Hyundai, and LG.
• Export-driven economy: South Korea’s economy is heavily reliant on exports, with key products such as semiconductors, cars, ships, and petrochemicals contributing to its trade surplus.
• Highly educated workforce: Over 70% of its population aged 25-34 hold a tertiary education degree. This has contributed to the development of a knowledge-based economy and a thriving tech industry.
• Strong work culture: Employees in South Korea are known for their work ethic, and some might say they overcommit to work. For South Koreans, long working hours are common.
• Long work hours: The government has introduced in 2018 measures to reduce the maximum working hours from 68 to 52 hours per week to push for a better work-life balance. New York Times article reveals that, nonetheless, “Some companies have ways to get employees to put in longer hours. They may pay fixed salaries that already incorporate overtime hours, and not all hours for all types of work may be tracked.” Therefore, as these overtime working hours are usual in South Korea, the government and employees need to ensure fair compensation and overtime pay.
• Youth unemployment: Despite its economic strength, South Korea faces challenges with youth unemployment, which, in 2023, was at 5.9%, according to Statista. South Korea also needs a competitive job market for recent graduates, especially outside the technology sector.
• Aging workforce: South Korea faces challenges with an aging population, which is expected to impact labor market productivity and social welfare costs in the coming years.

Nonetheless, South Korea faces challenges with low birth rates and income inequality. The government has implemented various policies to address these issues, including efforts to boost productivity, support small and medium-sized enterprises, and enhance social welfare programs.

FAQ

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Sources:

https://data-explorer.oecd.org/vis?df[ds]=DisseminateFinalDMZ&df[id]=DSD_EARNINGS%40AV_AN_WAGE&df[ag]=OECD.ELS.SAE&dq=……&pd=2023%2C&to[TIME_PERIOD]=false&vw=tb

https://www.koreaherald.com/view.php?ud=20240610050727

https://www.worldometers.info/gdp/gdp-by-country

https://www.minimumwage.go.kr/english/introduce/minWage.do

https://www.worldbank.org/en/country/korea/overview

https://www.paylab.com/kr/salaries-in-country

https://eng.kwdi.re.kr/publications/researchAbstractDetail.do?p=5&idx=102883

https://www.statista.com/statistics/1233398/south-korea-youth-unemployment-rate/#:~:text=In%202023%2C%20the%20unemployment%20rate,has%20been%20declining%20since%202020.

https://www.nytimes.com/2024/08/05/business/south-korea-labor-workweek.html#:~:text=South%20Korean%20labor%20laws%20cap,parents%20or%20grandparents%20weren’t.