Female workers in South Korea have identified the gender wage gap as the most significant form of workplace discrimination. (Image courtesy of Yonhap)
SEOUL, Sept. 5 (Korea Bizwire) — South Korean women not only earn far less than men during their working lives but also receive significantly smaller pensions in retirement, according to new research presented Thursday by the Korean Confederation of Trade Unions (KCTU).
The study, conducted by senior researcher Jang Jin-hee of the KCTU’s Central Research Institute, found that women’s labor market disadvantages compound over time, producing deep disparities in old-age income.
In 2021, women earned an average of 12,000 won per hour, just 60 percent of the 20,306 won earned by men, even after adjusting for hours worked. Because pension contributions are tied to wages, these differences translate into markedly lower benefits over decades.
The gaps are also evident in coverage. Last year, 63.5 percent of men were enrolled in the national pension system, compared with 46 percent of women. Women contributed for an average of 11.6 years, nearly six years less than men. As a result, just 19.5 percent of women in retirement drew a pension in 2023, compared with 44.9 percent of men.
Even among recipients, the disparities are stark. In 2013, women in their 60s received 56 percent of the average monthly payout for men; by 2021 the figure had inched up only to 57.3 percent. Among those in their 70s, the ratio worsened, dropping from 65.7 percent in 2013 to 57.2 percent in 2021.
“While the gender wage gap has narrowed slightly since 2013, the pension gap has barely budged,” Jang said, attributing the problem to entrenched labor market discrimination, career interruptions, and structural barriers such as the glass ceiling and the dual labor market.
She called for reforms including mandatory gender-disclosure reporting, stronger protections for non-standard workers, expansion of birth credits and survivor benefits, and the adoption of official targets for reducing the gender pension gap.
The findings underscore the enduring financial vulnerability of South Korean women, whose low labor force participation and interrupted careers continue to undermine economic security well into old age.
M. H. Lee (mhlee@koreabizwire.com)
