Some large corporations are entering an era of average salaries exceeding 200 million won ($150,000) for employees. This trend is driven by increased bonus payouts in sectors like semiconductors and defense, which are experiencing strong performance. In contrast, most companies excluded from these bonuses are seeing salary increases that lag behind inflation. Concerns are growing that the impact of bonuses on wage structures could exacerbate the 'K-shaped wage polarization' across industries.
SK Hynix Surpasses Automotive Sector with 200 Million Won Salaries
According to business reports released on August 18, SK Square, an investment firm under SK Group, paid an average salary of 52.3 million won ($39,000) to 86 employees in the first half of this year. This marks a 217% increase from the same period last year (16.5 million won), translating to over 100 million won annually. The company attributes this surge to skyrocketing stock prices due to the semiconductor boom, which has enhanced its stock grant compensation system.
SK Hynix, benefiting from the semiconductor supercycle, reported an average salary of 144 million won ($108,000) in the first half of the year, a 23.1% increase from the previous year. This figure includes part of the average excess profit bonus (PS) of 13 to 14 million won paid in February. The annual salary is expected to approach 200 million won.
Samsung Electronics employees received an average salary of 63 million won ($47,000) in the first half, a 5% increase from last year's 60 million won. However, performance varied by division.
In July, the Device Solutions (DS) division's memory business achieved its highest target achievement incentive (TAI) of 100% of base salary due to increased supply of high-bandwidth memory (HBM) and rising prices of general DRAM. In contrast, the Consumer Electronics (DX) division's mobile (MX) and TV (VD) segments received only 50% and the home appliances (DA) segment received 25%. As performance-based bonuses become more differentiated, wage disparities are expected to widen in the second half of the year.
The defense sector, which is on track for overseas orders worth $20 billion (approximately 28.2 trillion won), has also seen significant wage increases. Hanwha Aerospace employees reported an average salary of 76 million won ($57,000) in the first half, a 7% increase from the previous year. Similarly, LIG D&A's average salary surged by 15.4% to 60 million won ($45,000).
Wage Declines Amid Rising Prices: Hardships in Home Appliances, Automotive, and Parts
In contrast, industries such as home appliances and automotive are witnessing declines in salary levels due to poor market conditions and performance.
LG Electronics reported an average salary of 58 million won ($43,000) per employee in the first half, down 1 million won from the same period last year. Hanwha Systems saw a 3.3% decrease in average semi-annual salary to 59 million won ($44,000). Kumho Tire's average salary fell by 2.3% to 43 million won ($32,000).
Hyundai Motor's average salary for the first half was 46 million won ($34,000), a modest 2.2% increase that fell short of the national average inflation rate of 2.5%. HL Mando also reported a 2.2% increase in average salary to 47 million won ($35,000). Kia's average salary rose by 4% to 47 million won.
Within the same industry, wage disparities are widening based on company size. Hanmi Semiconductor's average salary in the first half increased by only about 100,000 won (0.3%), effectively remaining stagnant. The situation is even more severe for JUSUNG Engineering, which serves major clients like SK Hynix, where the average salary plummeted by 27.3% from 55 million won ($41,000) last year to 40 million won ($30,000) this year.
An industry insider noted, "The concentration on AI semiconductors and the timing of new equipment investments by large companies mean that the semiconductor boom is not translating into ecosystem development for the entire parts and materials sector. The high salaries are limited to a select few."
As the impact of bonuses on salary structures is expected to grow, the wage gap between industries is likely to continue expanding. While semiconductors and defense are benefiting from increased demand for high-value products, the automotive sector faces mounting profitability pressures that hinder compensation growth despite revenue increases.
A representative from the Korea Employers Federation stated, "The large-scale bonus payouts are driving up wage growth rates in certain sectors, widening disparities in the labor market. In an environment of increasing uncertainty due to U.S. investment pressures and the rise of global protectionism, we must be cautious of excessive wage increases that could undermine corporate sustainability and lead to social conflict."
* This article has been translated by AI.
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