Korean Employees' Average Initial Salary Much Higher than That of Japanese Counterparts

The Korea Enterprises Federation announced on Oct. 4 that new college graduate and full-time employees received an average annual salary of 33.91 million won last year. According to the federation, the average is 50.84 million won in companies with 300 or more employees, 33.29 million won in those with 30 to 299, 28.68 million won in those with five to 29, and 26.11 million won in those with less than five.

The figures include bonuses, overtime pays, and the like. With those excluded, the average is 46.9 million won in the first group and the average of the fourth group stands at 55.4 percent of the average of the first group.

The federation pointed out that the average annual salaries of the four groups are higher than those of the same groups in Japan. “On a purchasing power parity basis, the overall average of South Korea is US$36,743 and that of Japan is US$28,973,” it said, adding, “The figures are US$47,808 in South Korean companies with 500 or more employees and US$29,941 in Japanese companies with 1,000 or more employees and the difference is likely to increase in comparison between South Korean and Japanese companies with 1,000 or more employees.”

According to the federation, the averages of South Korean and Japanese companies with 10 to 99 employees are US$31,522 and US$26,398, respectively. Likewise, the averages of those with 100 to 499 are US$36,177 and US$28,286, respectively.

“On a market exchange rate basis, the average of South Korean companies with 10 to 99 employees is US$23,488, 6.4 percent lower than that of Japanese companies of the same size,” it went on to say, continuing, “On the other hand, that of major South Korean companies is US$35,623, 25.2 percent higher than that of Japanese companies of the same size.”