South Korea’s Executive Pay 24 Times Higher Than Worker Average, Report Shows

 In South Korea, the pay disparity between top executives and average employees in major corporations has reached a staggering level.

Last year, the average annual salary for CEOs of large companies was reported at 2.09 billion won, while their employees earned an average of 87 million won, resulting in a gap exceeding 1.9 billion won.

These findings are based on salary disclosures from 291 out of the top 500 corporations in South Korea.

The analysis revealed that while the average CEO salary saw a 2.9% increase from the previous year, reaching 2.09 billion won, the average employee salary experienced a 2.8% decrease, amounting to 87 million won.

The disparity ratio widened from 22.7 times in the preceding year to 24.1 times. 

The gap was most pronounced at Kakao, where former CEO Namkoong Whon received a total of 98.99 billion won, including profits from exercised stock options, creating a 98-fold difference with the average employee salary of 99.78 million won.

Other notable companies with significant pay gaps included E-Mart with a 77.1-fold difference, Hyundai Motor at 70.1, and Hite Jinro at 68 times. 

By industry, the retail sector exhibited the largest disparity at 35.8 times, while the banking sector showed the smallest gap at 9.6 times.

The number of companies where the average employee salary exceeded 100 million won dropped to 82 from 89 the previous year.

S-Oil topped the list with an average employee salary of 168 million won, followed by KB Financial, Shinhan Financial Group, and SK Energy.

The average salary for non-registered executives also saw a decline of 8.1% from the previous year, settling at 310 million won.

source: http://koreabizwire.com/south-koreas-executive-pay-24-times-higher-than-worker-average-report-shows/277263

Comprehension

How much was the average annual salary for CEOs of large companies in South Korea last year?
What was the average salary for employees in these companies?
How much did the CEO of Kakao earn compared to the average employee?
Which industry showed the largest pay disparity according to the article?
How many companies had average employee salaries exceeding 100 million won?
What was the average salary for non-registered executives and how did it change from the previous year?
How many corporations' salary disclosures were analyzed in this report?

Discussion

How do you think such a large pay gap between CEOs and employees can affect company morale?
Do you believe there should be a limit on how much CEOs can earn compared to their employees? Why or why not?
In what ways do you think companies can reduce the pay disparity between top executives and average workers?
How important do you think it is for companies to be transparent about their salary structures?
What measures could be taken to ensure fair compensation for all employees within a company?
How might a significant pay gap impact the overall performance and productivity of a company?
Do you think public awareness of these pay disparities can lead to changes in corporate practices?
How can employees advocate for fairer wages within their organizations?
What role do you think government regulations should play in addressing income inequality within corporations?
How do you think the pay gap between CEOs and employees in South Korea compares to other countries?

Vocabulary

Disparity - a great difference or inequality
Staggering - astonishing or overwhelming
Exceeding - surpassing or going beyond
Pronounced - clearly noticeable or distinct
Profits - financial gains or earnings
Stock options - the right to buy or sell a stock at a specified price within a certain period
Decline - a decrease or reduction
Transparency - openness and honesty in actions or dealings