South Korea’s newest batch of university graduates lives in fear of being trapped at the bottom of the pay scale in a group of workers dubbed the “880,000 Won Generation.”
The figure, equal to about US$650, represents about what a temporary staff or contract worker makes a month in net pay and is also a sign of the crushed dreams of the country’s youth who bet an elite education would lead to a rewarding career.
The current global crisis may cause South Korea to create its first generation of chronically underemployed and unemployed among the highly educated since the country emerged as a global economic power over the past few decades, experts said.
PHOTO: REUTERS
“Years ago, a diploma from a good university was a blank check for career success in Korea, but now it’s merely a certificate of unemployment,” said Cho, a university senior who asked only to be identified by her family name.
There are few places in the world where youth invest as much time and parents spend as large of a percentage of their income on education as South Korea, where cram schools are required to shut down by midnight so that students can have some sleep after studying for between 12 and 14 hours a day.
The goal has been entry to an elite university, which usually means a high-paying job, being considered a more desirable candidate for marriage and a level of prestige in the highly competitive society.
For many like Cho, the answer to the tough job market is even more education but experts are wondering if the current job crunch may be more than temporary and could signal an unraveling of social structures.
“There is a low empowerment level among people in their 20s,” said Woo Suk-hoon, an economics professor who coined the term 800,000 Won Generation in a recent book. “There is a much weaker social safety net in South Korea compared to what is offered in many OECD countries. This makes it easier for the country to sacrifice younger South Koreans in the labor market.”
A growing number of the young South Koreans have only been able to find temporary work. They see these posts as quicksand because the longer they stay, the more difficult it becomes for them to escape to join the regimented work force of regular workers who traditionally stay with one company for life.
The situation will likely get worse as the government predicts about 200,000 jobs will disappear this year while many private-sector economists warn of as many as 500,000 job losses.
Above a third of a million South Koreans aged between 20 and 29 were jobless in February, bringing the unemployment rate for the age group to 8.5 percent, more than double the nationwide jobless rate, the National Statistical Office said.
The government is aiming to ease the employment pinch through job-sharing and internship programs but Chu Duk-han, an activist who runs an online community for job seekers, sees this as nothing but a stop-gap measure.
“There are so many hopeless people who cannot even get those irregular jobs. The unemployment rate of the highly educated young people doesn’t tell the whole story. High school graduates are totally being excluded and ignored,” Chu said.
Kang Myung-koo, a 31-year-old high school graduate, said that he has not even been able to find a part-time job since last June when he lost a post at an online shopping mall in shipping.
“I am competing with college students for simple jobs with no age limits or academic requirements. I have nowhere to go. It’s hopeless. My bank account has dried up and the unemployment insurance benefits will stop soon,” Kang said.
Major employers such as Korea National Oil Corp, Hyundai Motor and the National Pension Service have said they plan to cut the wages of new hires.
In addition, many have said they will hire fewer regular employees and more contractors through internship programs.
“More and more companies are closing their doors for new full-time workers and hiring cheap interns instead,” said Park Young-ryeol, a professor of business administration at Yonsei University.
“I’m afraid this type of hiring is turning into a common practice,” Park said.
SECURITY: The purpose for giving Hong Kong and Macau residents more lenient paths to permanent residency no longer applies due to China’s policies, a source said The government is considering removing an optional path to citizenship for residents from Hong Kong and Macau, and lengthening the terms for permanent residence eligibility, a source said yesterday. In a bid to prevent the Chinese Communist Party (CCP) from infiltrating Taiwan through immigration from Hong Kong and Macau, the government could amend immigration laws for residents of the territories who currently receive preferential treatment, an official familiar with the matter speaking on condition of anonymity said. The move was part of “national security-related legislative reform,” they added. Under the amendments, arrivals from the Chinese territories would have to reside in Taiwan for
CRITICAL MOVE: TSMC’s plan to invest another US$100 billion in US chipmaking would boost Taiwan’s competitive edge in the global market, the premier said The government would ensure that the most advanced chipmaking technology stays in Taiwan while assisting Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in investing overseas, the Presidential Office said yesterday. The statement follows a joint announcement by the world’s largest contract chipmaker and US President Donald Trump on Monday that TSMC would invest an additional US$100 billion over the next four years to expand its semiconductor manufacturing operations in the US, which would include construction of three new chip fabrication plants, two advanced packaging facilities, and a research and development center. The government knew about the deal in advance and would assist, Presidential
‘DANGEROUS GAME’: Legislative Yuan budget cuts have already become a point of discussion for Democrats and Republicans in Washington, Elbridge Colby said Taiwan’s fall to China “would be a disaster for American interests” and Taipei must raise defense spending to deter Beijing, US President Donald Trump’s pick to lead Pentagon policy, Elbridge Colby, said on Tuesday during his US Senate confirmation hearing. The nominee for US undersecretary of defense for policy told the Armed Services Committee that Washington needs to motivate Taiwan to avoid a conflict with China and that he is “profoundly disturbed” about its perceived reluctance to raise defense spending closer to 10 percent of GDP. Colby, a China hawk who also served in the Pentagon in Trump’s first team,
The arrival of a cold front tomorrow could plunge temperatures into the mid-teens, the Central Weather Administration (CWA) said. Temperatures yesterday rose to 28°C to 30°C in northern and eastern Taiwan, and 32°C to 33°C in central and southern Taiwan, CWA data showed. Similar but mostly cloudy weather is expected today, the CWA said. However, the arrival of a cold air mass tomorrow would cause a rapid drop in temperatures to 15°C cooler than the previous day’s highs. The cold front, which is expected to last through the weekend, would bring steady rainfall tomorrow, along with multiple waves of showers
RSS