Young talent in South Korea accepts lower starting pay as entry-level roles decline

South Korea’s entry-level job market squeeze is reshaping pay expectations and career strategies among young talent, new survey data shows. Hoped-for starting salaries among young jobseekers in South Korea have fallen by about 10% year on year, reflecting a prolonged hiring freeze at the entry level and a growing urgency among candidates to secure early work experience.

According to a survey conducted this month by South Korean job platform Catch, jobseekers aged 31 and below expect to earn an average of 43 million won (US$29,300) in their first year of employment—down 4 million won from the previous year. The annual survey covered 1,204 respondents.

Catch attributed the decline in wage expectations to a fundamental shift in job-hunting strategies, driven by structural changes in employer demand. While more than half of respondents said their long-term goal is still to work for a large corporation, 64% indicated they plan to start their careers at small and medium-sized enterprises (SMEs) to build experience, rather than wait for openings at major conglomerates.

Traditionally, SMEs have been viewed as a less attractive first option due to lower starting pay and concerns that early salaries could limit future wage negotiations. However, employers’ growing preference for candidates with hands-on experience is pushing jobseekers to reconsider pathways they previously avoided.

“Jobseekers still aspire to work for high-paying industry leaders, but their wage expectations are becoming more realistic,” a Catch official said. “Instead of seeing their first workplace as a lifelong commitment, more young people are choosing to start wherever opportunities are available.”

This shift also comes amid a sharp decline in entry-level hiring, a trend analysts expect to become increasingly structural as AI adoption accelerates. AI is reducing demand for junior roles that have traditionally served as entry points for young employees, while increasing organisations’ preference for candidates who require less training.

A separate Catch survey conducted last year found that major organisations posted just 2,145 regular entry-level openings between January and November 2025—a 43% drop compared with the same period a year earlier.

READ MORE: Jobseekers in South Korea face tighter age expectations despite longer paths to employment

The contraction was most profound in information technology and telecommunications, sectors at the forefront of AI adoption. Entry-level recruitment in these industries fell by 67% year on year, underscoring how automation is reshaping workforce demand.

And to improve their chances of entering major organisations later, many young professionals are adopting what is locally known as the “secondhand rookie” strategy—joining smaller organisations first, then reapplying for entry-level roles at large organisations with practical experience already in hand.

Catch’s survey last year found that 70% of respondents had considered pursuing this route. The approach allows candidates to compete for entry-level roles while already possessing job-ready skills, aligning with employers’ desire to shorten onboarding and training cycles.

This trend is already visible in hiring data. According to the Federation of Korean Industries, secondhand rookies accounted for 28.1% if new hires at the country’s top 500 organisations by revenue in 2024, marking the second consecutive year of growth, reported The Korea Herald.