In recent decades, Korea’s labor market has undergone a striking transformation. While the country has experienced rapid technological advancement and global competitiveness, the internal structure of employment tells a different story—one of deepening inequality between generations, between large corporations and smaller firms, and between those protected by strong unions and those left exposed.
A new report by the Korea Employers Federation highlights this widening gap. It reveals that employment among older workers in large corporations has surged dramatically, while opportunities for younger employees have dwindled. This shift is not just a statistical curiosity; it reflects systemic imbalances that risk undermining both fairness and productivity in the Korean economy.
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The Rise of Older Employees in Big Corporations
In 2004, employees aged 55–59 made up only about 42,000 positions in large corporations. By 2024, that figure had skyrocketed to nearly 247,000—a staggering 492.6% increase. Within unionized large companies, the trend is even more extreme: older employees grew from 25,000 to 216,000 over the same period, marking a 777% increase.
This surge illustrates how stable, union-protected positions are increasingly dominated by senior employees who hold on to jobs longer than ever. The average job tenure for regular employees in large corporations has lengthened from 10.4 years in 2004 to 12.1 years in 2024. At the same time, the hiring rate of new employees (those with less than one year of tenure) has declined sharply—from 9.6% to just 6.5%.
For older workers, this stability is a blessing. It means steady income, benefits, and a sense of security. But for younger job seekers, it represents a closed door. The very positions they aspire to are already occupied, and turnover is minimal.
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Decline of Youth Employment
While older employees have surged, youth employment has fallen. Workers aged 23–27 in large corporations numbered around 196,000 in 2004. By 2024, this had dropped to 193,000—a modest decline in absolute numbers, but a severe drop in proportional representation. Youth made up 13.7% of regular corporate employees two decades ago; today, that figure has halved to just 7.3%.
The report suggests that the combination of long tenures, low turnover, and the entrenchment of senior employees creates formidable barriers for young people. In effect, the labor market has become a closed system where older workers dominate secure positions while the younger generation is pushed toward precarious, less stable jobs.
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The Persistent Divide Between Large Corporations and SMEs
The generational divide is compounded by another structural imbalance: the gulf between large corporations and small- and medium-sized enterprises (SMEs).
While regular employees in large corporations enjoy extended job tenure, strong unions, and comprehensive benefits, SME and non-regular workers face a different reality. Their average tenure has grown from 3.8 years to 5.7 years over two decades, but this remains far below the stability of large corporations. Moreover, the wage gap persists. In 2004, SME and non-regular workers earned only 5.8% of the salary of large corporation employees. By 2024, this figure had risen to 57.9%. On paper, this looks like progress—but it still reflects significant inequality, especially when paired with lower access to social insurance and weaker welfare benefits (still only 60–70% coverage).
This duality means that Korea’s labor market operates on two tracks: one highly secure but exclusive, the other flexible but fragile.
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Structural Implications
Labor experts argue that the dominance of older workers in secure jobs is not simply a demographic trend, but a structural barrier that reduces overall economic dynamism. When young people are excluded from stable employment in large corporations, they face reduced opportunities for skill development, career growth, and long-term financial security.
Im Yeong-tae, head of employment and social policy, noted that while roughly 12% of workers (mostly in large corporations) enjoy high levels of legal and social protection, the remaining 88%—those in SMEs and non-regular positions—operate under weaker protections. For youth, this imbalance fosters frustration, lowers productivity, and reduces social trust.
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A Path Forward
The Korean labor market faces a difficult balancing act. Protecting older workers is vital in a rapidly aging society. But ensuring opportunities for younger generations is equally important for sustainable growth. Policymakers must address rigidities in large corporations, encourage fairer turnover, and improve protections and benefits for SME employees.
Without systemic reform, Korea risks entrenching a dual labor market that not only divides generations but also undermines national competitiveness. A fairer, more dynamic system is essential—one that balances the experience of older employees with the innovation and energy of youth.
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✅ Conclusion:
The numbers paint a clear picture. Korea’s large corporations have become safe havens for older workers, while youth face increasing barriers to entry. SMEs and non-regular positions remain under-protected and under-compensated. If left unaddressed, this dual structure may widen further, leaving young Koreans disillusioned and the economy less adaptable. Reform is not just desirable—it is necessary.
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