The '880,000 won' generation
Lee Tee Jong
The Straits Times
Publication Date: 15-08-2008




Dubbed the '880,000 won generation', many young South Koreans are hardly earning enough to make ends meet in a tight labour market.
The term, coined by young South Koreans themselves, refers to the typical wage of a young worker--officially defined as those aged between 15 and 29--who is on contract.
The pay, equivalent to US$846, is much less than that of an average permanent worker who earns about 2 million won.
"After deducting for transport and food, the amount of money left is just enough to buy three movie tickets," said Roh Seung Woo, 25, an administrative assistant who earns 800,000 won a month. A movie ticket costs 8,000 won.
His employer sells car accessories and pays permanent staff about 20 per cent more than those on contract.
However, contract work is on the rise, accounting for two in five new positions, twice the figure four years ago.
Kim Sae Yoon, 48, owner of a job agency, said: "In times of economic uncertainty, companies want the flexibility to be able to let go of workers with minimal compensation.'
Still, contract workers can consider themselves lucky as many others are struggling to land a job.
Last month, 55,270 candidates converged in Seoul from across the country for the city government civil service examination to vie for 1,133 positions, a competitive ratio of 49 to 1. A government job is popular as it offers lifelong employment.
"The competition is intense and this is my third attempt in three years," said Park Jae Joon, 28.
Getting a private-sector job is just as difficult.
A recent survey of 500 local companies by the Korea Chamber of Commerce and Industry showed that one-quarter of the respondents have a headcount freeze while half of them intend to recruit fewer staff compared to previous years.
In the first half of this year, the top 11 conglomerates have a total of 7,700 openings and 260,000 people fighting for it--a ratio of 34 to 1.
"In an uncertain business climate caused by the global economic downturn and hike in prices of raw materials, companies are cautious about increasing their investment and staff costs," said Kim.
The current unemployment rate among young people is 6.9 per cent, twice the average of other age groups.
"I have sent out 300 job applications over the past nine months, gone for just 10 interviews and yet to get a single job offer," said Nam Hyong Joon, 25, who graduated last year.
He is so worried that he may miss a call from a prospective employer that he even takes his mobile phone into the bathroom.
Young Koreans take an average of 11 months to secure a job, up from the 10-month figure in 2004, according to the National Statistical Office.
In comparison, their Singaporean counterparts have an easier time. The latest batch of Singapore Management University graduates got a job within six months of graduation and some were offered jobs even before convocation.
Unemployment is taking its toll on the mental health of young Koreans. A survey of 1,082 young job-seekers by online recruiting company Job Korea last year showed that almost half of the respondents have contemplated suicide.
Many blame the government for their predicament. "I am disappointed with President Lee Myung Bak for failing to make good his promise to revive the economy and boost employment," said Lim Yong Ji, 25.