Wage gap widens in South Korea's electronics sector amid semiconductor boom

South Korea's booming semiconductor industry is driving a significant increase in wages, particularly for regular employees in large electronics companies. This surge has widened the income gap between different employment types and company sizes. Analysis of national statistics reveals that the average monthly wage for regular workers in the 'electronic parts, computer, visual, audio, and communication equipment manufacturing' sector reached 7.46 million won last year, a stark contrast to the 2.69 million won earned by temporary and daily workers.

The disparity is even more pronounced when comparing employees at large corporations versus smaller ones. Regular workers at companies with 300 or more employees in this sector earned an average of 9.42 million won per month, more than double the 4.5 million won earned by their counterparts in companies with fewer than 300 employees. For temporary and daily workers at smaller firms, the monthly income was a mere 1.76 million won, less than a fifth of what regular employees at large firms receive.

This widening wage gap reflects a broader trend across the Korean economy, where the income difference between permanent and non-permanent workers has grown. Experts express concern that the rise of winner-take-all economies, particularly in the age of AI, will further entrench income inequality. They advocate for tax reforms, such as reducing tax exemptions and implementing more progressive tax structures, to better redistribute wealth towards social welfare programs.

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As we move into the winner-take-all era of artificial intelligence (AI), income gaps are bound to widen further. Considering that Korea's tax burden rate is still low compared to other countries, we need to collect more through measures like reducing non-taxable benefits or reforming the tax system to be more progressive, and use it for redistribution to welfare, etc.