{"id":15188,"date":"2026-11-10T15:13:18","date_gmt":"2026-11-10T15:13:18","guid":{"rendered":"https:\/\/sotnews.agency\/?p=15188"},"modified":"2026-11-10T15:13:18","modified_gmt":"2026-11-10T15:13:18","slug":"million-dollar-bonuses-shuttered-shops-2-sides-of-koreas-economy","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=15188","title":{"rendered":"Million-dollar bonuses, shuttered shops: 2 sides of Korea’s economy"},"content":{"rendered":"
\n
\n \t<\/i> Read Time:<\/span>6 Minute, 24 Second <\/div>\n\n <\/div>


\n<\/p>\n

\n
\"gettyimagesbank\"<\/picture>
\n

gettyimagesbank<\/p>\n<\/figcaption><\/figure>\n

Korea’s semiconductor boom is generating enormous bonuses for employees at major chipmakers, with some even considering early retirement. But for young job seekers struggling to land their first job and small business owners facing falling sales, the country’s economic recovery feels increasingly out of reach.<\/p>\n

“Even with strong qualifications, it’s difficult to get past the initial resume screening,” said a job seeker in their 20s. “They say the economy is booming, but it feels hopeless.”<\/p>\n

The contrast highlights a widening divide in Korea’s economy, where soaring semiconductor earnings fueled by the artificial intelligence boom have lifted corporate profits without delivering comparable benefits to workers and businesses outside the industry.<\/p>\n

While employees at Samsung Electronics and SK hynix anticipate substantial performance bonuses, young people face a prolonged employment slump. Luxury retailers and department stores are enjoying robust sales even as neighborhood restaurants and small businesses struggle to survive.<\/p>\n

The growing disparity raises questions about whether Korea’s headline economic growth is translating into meaningful improvements in living standards across industries, income groups and regions.<\/p>\n

Young workers face shrinking opportunities
<\/strong><\/p>\n

The employment outlook for young Koreans remains bleak.<\/p>\n

According to September employment data released by the national statistics agency, the number of employed people aged 15 to 29 fell by 147,000 from a year earlier, marking the 47th consecutive month of decline.<\/p>\n

The youth employment rate dropped 1.1 percentage points to 44 percent, extending its downward trend to 29 consecutive months.<\/p>\n

Even those who secure stable jobs face another obstacle: the soaring cost of housing.<\/p>\n

Apartment prices in Seoul have risen for 91 consecutive weeks, making homeownership increasingly difficult for young workers without substantial financial support from their families.<\/p>\n

A 38-year-old office worker surnamed Park, who recently set up a marital home in Anyang, Gyeonggi Province, said a decade of employment had still not been enough to afford a home in Seoul.<\/p>\n

“I was shocked that even after working for 10 years, the two of us still couldn’t afford a single home in Seoul,” Park said. “I’ve come to realize how much the timing of living under the Moon Jae-in and Lee Jae Myung administrations can affect the wealth gap.”<\/p>\n

Park’s comments reflect frustration over the role of housing prices and government policies in shaping wealth accumulation across generations.<\/p>\n

For some semiconductor employees, however, the financial picture looks dramatically different.<\/p>\n

An employee at Samsung Electronics said the industry’s current boom had brought expectations of extraordinary performance bonuses.<\/p>\n

“I graduated from a regional national university and got a job without much difficulty in 2018,” the employee said. “With the semiconductor boom this year, I heard I could receive around 700 million won ($500,000) in bonuses early next year, so I bought a home in Bundang.”<\/p>\n

The employee said reports of potential bonuses totaling 8 billion won over five years had even prompted thoughts of joining the “FIRE” movement, short for Financial Independence, Retire Early.<\/p>\n

The figures reflect the employee’s account and expectations rather than confirmed companywide payouts, but illustrate the striking contrast between workers benefiting from the semiconductor boom and those struggling to enter the labor market.<\/p>\n

\"A<\/picture>
\n

A Styrofoam box bearing a closure notice sits outside a fish shop at a traditional market in Seoul. Yonhap <\/p>\n<\/figcaption><\/figure>\n

Small businesses face falling sales and rising costs<\/strong><\/p>\n

The divide is equally visible in Korea’s consumer economy.<\/p>\n

While the government considers how to allocate growing tax revenues, many neighborhood businesses are struggling with weak demand and rising operating expenses.<\/p>\n

For Yoo Deok-hyun, 67, who has operated a Korean restaurant near Daebang Station in Seoul’s Yeongdeungpo District for 12 years, news of an economic boom bears little resemblance to his daily reality.<\/p>\n

“Sales have fallen 20 to 30 percent compared with a year ago, while ingredient prices have risen 10 to 20 percent depending on the item,” Yoo said.<\/p>\n

“Just because semiconductor companies are doing well and economic growth is rising doesn’t mean neighborhood businesses are doing well too.”<\/p>\n

Yoo has reduced his workforce by two employees to manage expenses, but the cuts have not been enough to offset declining revenue and rising costs.<\/p>\n

Official figures suggest that the pressure extends well beyond individual businesses.<\/p>\n

According to the Korea Real Estate Board, the nationwide vacancy rate for general commercial properties rose from 11.96 percent in the first quarter of 2021 to 13.36 percent in the second quarter of this year.<\/p>\n

The rate increased for seven consecutive quarters beginning in the third quarter of 2024, reaching its highest level since 2021.<\/p>\n

Business closures also remain elevated.<\/p>\n

Last year, approximately 976,000 business operators shut down, down from 1.008 million the previous year but still close to the 1 million mark.<\/p>\n

Among them, 317,406 had operated their businesses for at least five years before closing, the highest figure since 2005.<\/p>\n

For many former business owners, financial difficulties continue long after their shops close.<\/p>\n

According to Financial Supervisory Service data obtained by Rep. Park Hong-bae of the ruling Democratic Party of Korea, 275,981 self-employed borrowers who had closed their businesses at least six months earlier held a combined 21.12 trillion won in outstanding bank loans as of the end of June.<\/p>\n

That represented a 54 percent increase from the end of 2021.<\/p>\n

Over the same period, their overdue loan balances surged 369.5 percent, underscoring the lasting financial burden facing former small business owners.<\/p>\n

Luxury spending surges despite weak neighborhood demand
<\/strong><\/p>\n

In sharp contrast, Korea’s premium retail sector is enjoying strong growth.<\/p>\n

According to the Ministry of Trade, Industry and Resources, department store sales increased by an average of 18.98 percent year-on-year during the first eight months of this year.<\/p>\n

Sales of imported luxury goods grew by a monthly average of 28.7 percent over the same period.<\/p>\n

The figures suggest that spending among affluent consumers remains resilient even as many households and small businesses struggle with the rising cost of living.<\/p>\n

The divergence also underscores the uneven nature of the economic recovery, with the semiconductor industry and high-end consumption benefiting from favorable conditions while sectors dependent on domestic demand remain under pressure.<\/p>\n

Economists warn of growing economic vulnerability<\/strong><\/p>\n

Economists warn that Korea’s heavy reliance on semiconductors could leave the broader economy vulnerable if the current industry boom loses momentum.<\/p>\n

Kim Jung-sik, professor emeritus of economics at Yonsei University, said stronger headline growth has done little to ease the difficulties facing businesses and workers dependent on domestic demand.<\/p>\n

“Even though the economic growth rate is rising, domestic demand remains sluggish, leaving self-employed business owners and young job seekers in a difficult situation,” Kim said.<\/p>\n

He also warned that Korea’s other major industries, including automobiles, petrochemicals and heavy industry, are facing increasing competitive pressure from China.<\/p>\n

“If the semiconductor industry also enters a downturn, problems will begin to emerge in the weakest parts of our economy,” he said.<\/p>\n

The widening divide carries broader social risks. When economic growth benefits only a limited segment of society, frustration over unequal opportunities and diminished prospects for upward mobility can intensify.<\/p>\n

Recent social tensions in France offer a reminder of how economic inequality and uncertainty about the future can contribute to wider public discontent.<\/p>\n

For Korea, the challenge is ensuring that the benefits of the semiconductor boom extend beyond a handful of successful companies and their employees.<\/p>\n

Without stronger job creation, a recovery in domestic consumption and more opportunities for wealth accumulation, the country’s impressive economic growth figures may continue to mask the financial struggles of many ordinary Koreans.<\/p>\n

This article from the Hankook Ilbo, the sister publication of The Korea Times, was translated by a generative AI system and edited by The Korea Times.<\/span><\/em><\/p>\n

<\/div>\n\n

\n
\n \n
\n \n \"Happy\"\n <\/a>\n
\n Happy <\/div>\n
\n 0<\/span>\n \n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n
\n \n \"Sad\"\n <\/a>\n
\n Sad <\/div>\n
\n 0<\/span>\n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n
\n \n \"Excited\"\n <\/a>\n
\n Excited <\/div>\n
\n 0<\/span>\n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n
\n \n \"Sleepy\"\n <\/a>\n
\n Sleepy <\/div>\n
\n 0<\/span>\n \n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n
\n \n \"Angry\"\n <\/a>\n
Angry<\/div>\n
\n 0<\/span>\n 0<\/span> %<\/span>\n \n <\/div>\n <\/div>\n\n
\n \n \"Surprise\"\n <\/a>\n
Surprise<\/div>\n
\n 0<\/span>\n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n <\/div>\n <\/div>\n\n ","protected":false},"excerpt":{"rendered":"

gettyimagesbank Korea’s semiconductor boom is generating enormous bonuses for employees at major chipmakers, with some even considering early retirement. But for young job seekers struggling to land their first job and small business owners facing falling sales, the country’s economic recovery feels increasingly out of reach. “Even with strong qualifications, it’s difficult to get past…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_2277560469115098_106292521332774":"","twitter_aToxNzczMzI3Njk4OTg4ODUxMjAxOw==_1773327698988851200":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_templately_pack_id":"","_templately_imported_at":"","_templately_source":"","_templately_import_session_id":"","footnotes":""},"categories":[16,14],"tags":[],"class_list":["post-15188","post","type-post","status-publish","format-standard","category-korea","category-trending-news"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t