The total monthly wages of female workers at small and medium-sized enterprises (SMEs) were found to be only about one-third of those of male employees at large corporations. The gap widened significantly in special payments such as performance bonuses and year-end bonuses, and this wage disparity is expected to grow further.
According to the report “Analysis of Wage Gaps Between Large and Small-Medium Enterprises” released on the 8th by the Small and Medium Venture Business Research Institute, the total monthly wages of female SME workers in 2025 stood at 2,645,000 Korean won, just 37.2% of the 7,110,000 Korean won earned by male employees at large corporations. Wage levels followed the order of large corporation males, large corporation females, SME males, and SME females. Notably, the gap between regular workers at large corporations and non-regular workers at SMEs was pronounced. Total monthly wages include base salary, allowances, and average monthly performance bonuses and year-end bonuses.
Even when calculated by hourly wages, female SME workers earned 19,251 Korean won, 43.4% of the 44,315 Korean won earned by male employees at large corporations. The total monthly wages of male SME workers were 3,939,000 Korean won, 55.4% of large corporation males, but 1,294,000 Korean won less than female employees at large corporations (4,970,000 Korean won).
The wage gap widens further when considering employment types. Hourly wages for non-regular female workers at SMEs were 15,497 Korean won, just 33.2% of the 46,609 Korean won earned by regular male workers at large corporations. Even regular female workers at SMEs (21,373 Korean won) were at 45.9% of large corporation regular males and lower than non-regular female workers at large corporations (23,082 Korean won). Regular male workers at SMEs (28,041 Korean won) also fell short of non-regular male workers at large corporations (29,232 Korean won).
Wages dropped sharply as company size decreased. The total monthly wages of SMEs were 3,362,000 Korean won, 53.2% of the 6,323,000 Korean won at large corporations. Mid-sized enterprises (30–299 employees) had total monthly wages of 4,032,000 Korean won, small enterprises (5–29 employees) 3,401,000 Korean won, and micro-enterprises (4 or fewer employees) 2,391,000 Korean won, just 37.8% of large corporations.
The core of the gap was special payments like performance bonuses and year-end bonuses. The average monthly special payments at SMEs were 208,000 Korean won, only 17.4% of the 1,195,000 Korean won at large corporations. Special payments at micro-enterprises (4 or fewer employees) were 5.5% of large corporations, and 16.4% for small enterprises (5–29 employees). The gap in special payments was wider than in fixed payments (64.5% of large corporations) or overtime payments (32.6%).
The gap has been widening over time. Fixed payments at SMEs fell from 65.7% (2022) to 64.5% (2025) compared to large corporations, and overtime payments decreased from 36.6% to 32.6% over the same period. Notably, the wage ratio of SME employees with less than one year of tenure compared to large corporations dropped from 67.6% in 2020 to 63.8% in 2025. This was attributed to SMEs’ annual wage increase rate for new employees (2.9%) lagging behind large corporations (4.2%) and even the minimum wage increase rate (3.1%).
Noh Min-sun, a researcher at the Small and Medium Venture Business Research Institute, stated, “The wage gap between large corporations and SMEs stems mainly from excessive disparities in special payments like performance bonuses and year-end bonuses.” She emphasized the need to “expand performance-based compensation systems at SMEs and enhance their capacity to pay wages through workplace innovation.” She added, “It is crucial to expand performance-based rewards for core SME workers, strengthen AI practical skills for current employees, improve conditions for non-regular and female workers, and promote cooperative ‘Tomorrow Savings’ programs.”
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