As the average income growth rate of large corporation workers outpaces that of small and medium-sized enterprise (SME) employees, the job income gap has widened further into a 'K-shape.' According to the '2024 Wage Worker Job Income Results' released by the National Data Agency on the 23rd, the monthly average income of large corporation wage workers in 2024 was 6.13 million won, a 3.3% increase from the previous year, while SME workers earned 3.07 million won, only a 3.0% increase. SME worker income is at half the level of large corporation workers, and is 680,000 won less than the overall wage worker average of 3.75 million won. The income gap between large corporations and SMEs, which had been narrowing since 2022, has widened again after three years. SME worker income, which was at 47.2% of large corporation worker levels in 2021, improved to 50.2% in 2023 but slipped back to 50.0% in 2024.
There is no problem with large corporation workers who achieve high performance receiving high compensation. However, we must address how the rigid labor market controlled by militant unions is deepening the dual structure between large and small businesses. When large corporations, swayed by excessive demands of 'aristocratic unions,' pass on steep wage increases and welfare cost burdens to subcontractors, SME competitiveness declines and employee treatment inevitably worsens. Moreover, large corporations burdened by new hiring costs are raising the threshold for new recruitment. Ultimately, quality jobs desired by young people decrease, and labor market polarization accelerates as SMEs fall into a vicious cycle of worsening working conditions and labor shortages.
If we continue to be swayed by aristocratic unions centered on large corporation regular employees, who comprise only 11.9% of all wage workers, the dual wage and treatment structure between large corporations and SMEs, and between regular and non-regular workers, will only become more entrenched. In particular, labor policies demanded by massive unions and pursued by the government—such as extending the retirement age to 65 and implementing a 4.5-day workweek—that are difficult for SMEs to bear could result in only increasing benefits for large corporation workers who already enjoy job security and high wages. The 'Yellow Envelope Law' set to take effect on the 10th of next month also raises significant concerns about side effects where costs and responsibilities are transferred to small subcontractors, contrary to its stated purpose of strengthening worker rights. If the Lee Jae-myung administration is sincere about resolving 'K-shaped polarization,' rather than implementing policies that only fatten the pockets of aristocratic unions under the pretext of strengthening labor rights, it should accelerate labor reforms that help increase labor market flexibility and reduce inequality to break down the chronic dual labor structure.