South Korea: Low-wage workers in service sector earn less than $1,450 monthly

Many low-wage workers in South Korea, especially those in service industries like call centers and supermarkets, are struggling to make ends meet, with a substantial number earning less than 2 million won (approximately $1,450) per month after taxes. A recent survey by the Korean Confederation of Trade Unions' Service Workers' Union revealed that 78.7% of respondents earn less than 2.5 million won monthly, and a concerning 36.7% fall below the 2 million won mark.

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Call center workers don't even earn 2 million won after working for nearly 20 years. As AI takes over consultations, the number of calls people handle decreases, cutting performance bonuses. There are even months when my net income falls below the minimum wage.

The survey, which focused on workers in supermarkets, tutoring centers, call centers, and caregiving services, found that the majority of respondents (90.5%) are women over 40. Many of these workers are long-term employees, with 36.9% having worked in their current industry for over 15 years. Despite their extensive experience, their wages have stagnated, with the average monthly income for a 15-year employee only about 300,000 won higher than that of a first-year employee.

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The low wage reality in service industries, where middle-aged women are concentrated, is severe.

This low wage environment forces many workers to take on second jobs to supplement their income. Yang Bok-soon, a 53-year-old home care worker, shared her experience of working at a logistics center part-time due to the rising cost of living. The survey indicated that 13.7% of respondents are engaged in such "two-job" situations. Furthermore, a vast majority (86.4%) feel unable to prepare for future expenses like housing, education, or retirement with their current earnings.

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Experience and skills are not compensated with wages, leading to entrenched low wages.

Labor unions are urging for a significant increase in the minimum wage, arguing that it acts as a vital wage floor, particularly for female-dominated service sectors. They point out that recent minimum wage hikes have been minimal, with annual increases hovering around 1-2%. The union is proposing a 16.3% increase to 12,000 won per hour for the upcoming year, while employer groups are advocating for no increase. This disparity highlights the ongoing debate about fair wages and the economic realities faced by South Korea's lowest-paid workers.

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The minimum wage is not just a 'living standard' but a wage floor for female-concentrated industries. A sufficient increase in the minimum wage is necessary.