The Korea Herald


Small, midsized companies‘ wages only half of conglomerates

By 조정은

Published : Feb. 26, 2017 - 10:29

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The average paychecks of small and midsized enterprises are only half of those provided by conglomerates, data showed Sunday, causing young jobseekers to shy away from applying for such positions.

According to the research conducted by the Ministry of Employment and Labor, employees of companies with more than 300 staff made 5.61 million won ($4,960) monthly in 2015. In contrast, those working at firms with a smaller number of staffs made 3.06 million won.

(Yonhap) (Yonhap)

Industry watchers said young jobseekers prefer to remain unemployed until finding positions at conglomerates instead of getting work at smaller companies due to the gap.

South Korea’s unemployment rate among those aged between 15 and 29 came to 9.8 percent, marking an all-time high level.

In contrast, more than 80 percent of local small and midsized companies said they were facing troubles in recruiting workers in a survey conducted by the Korea Small Business Institute in 2015.

Industry watchers said the government should provide tax benefits and other incentives to those working at small and midsized companies to induce young jobseekers to work there. (Yonhap)