The National Data Agency of South Korea published a troubling report on December 23, revealing that the wage gap between large and small businesses has widened again, marking a concerning trend in the labor market primarily characterized by a dual structure. The average income for wage earners increased by 3.3% to 3.75 million won, but the average income for large companies was at 6.13 million won, outpacing the 3.07 million won from small businesses, solidifying the gap at a ratio of 2:1. This widening disparity is a reversal from the recent trend of narrowing wage gaps over the past few years.

Experts attribute this widening gap to the impact of domestic demand stagnation, which has hit small enterprises harder than their larger counterparts that continue to thrive amidst favorable export conditions - largely benefitting from a robust semiconductor export cycle. The National Data Agency suggests that unless there are changes in policy to support small businesses and enhance their resilience to economic fluctuations, this wage gap might further exacerbate. Notably, the income growth rate for individuals in their 20s has also trailed behind the overall average, highlighting a concerning trend for youth employment in a precarious economic environment.

The implications of these findings are significant as they could point to a deeper systemic issue within the South Korean labor market. Not only does this dual structure highlight the disparity in income and job security for workers in different sectors, but it also raises alarm bells for the long-term economic health and social stability in the country. Economic policies geared toward boosting domestic consumption and providing support for small and medium enterprises are necessary to reverse these trends and promote a more equitable labor market.