Rising Trend of South Korean Science and Engineering Professionals Seeking Overseas Opportunities
A recent survey conducted by the Bank of Korea has highlighted a growing trend among South Korean science and engineering professionals, particularly those with master’s and doctoral degrees. The findings reveal that 40% of these individuals are considering leaving the country for overseas opportunities, driven by various factors including financial considerations.
The data shows that the number of Korean science and engineering doctoral professionals working in the U.S. reached 18,000 in 2021, marking a doubling over an 11-year period. This trend underscores a significant shift in career aspirations among highly educated professionals in South Korea.
Salary Disparities Between Domestic and Overseas Professionals
One of the key findings from the survey is the stark difference in salaries between domestic and overseas professionals. After 10 years of obtaining their final degree, the average annual salary of domestic science and engineering professionals was approximately 97.4 million Korean won. In contrast, those who moved overseas earned around 386 million Korean won, which is four times higher.
This gap is attributed to the fact that overseas salaries tend to rise sharply in the early stages of a career, while domestic salaries increase gradually over time. Additionally, the performance of overseas companies is significantly larger, contributing to the disparity.
Comparing this to national income figures, South Korea’s per capita national income last year was $36,745, which is only 44% of the U.S. per capita income of $83,660. This economic context further emphasizes the financial incentives driving professionals to seek employment abroad.
Younger Professionals More Likely to Seek Overseas Employment
The survey also revealed that younger professionals are more inclined to consider overseas employment. According to the Bank of Korea’s issue note titledDeterminants of Overseas Outflow of Science and Engineering Professionals and Policy Response Directions, 42.9% of science and engineering master’s and doctoral professionals remaining in the country indicated they are considering overseas employment within the next three years.
Notably, 5.9% have already made plans to move abroad or are currently in interviews. These results are based on a survey of 2,700 science and engineering master’s and doctoral professionals both domestically and abroad.
By field, the highest consideration for changing jobs was found in biotechnology, pharmaceuticals, and medical devices (48.7%), followed by IT, software, and telecommunications (44.9%). Even in sectors where South Korea holds a competitive edge, such as shipbuilding, plant, and energy (43.5%), the rate of considering job changes exceeded 40%.
Age Group Analysis
When analyzing the data by age group, the inclination to seek overseas employment was strongest among those in their 20s (72.4%), followed by those in their 30s (61.1%) and 40s (44.3%). The proportion of professionals actively making plans was highest among those in their 30s (10.4%).
The primary reason for considering overseas employment was financial factors (66.7%, combined responses from 1st to 3rd rank). This was followed by research ecosystem and networks (61.1%), guaranteed opportunities (48.8%), and children’s education (33.4%).
Significant Salary Gaps During Early Career Stages
The salary gap between domestic and overseas science and engineering professionals widens significantly during the first decade of their careers. According to the survey, in the year they obtained their final degree, the average annual salary of domestic professionals was approximately 58 million Korean won, while those who moved overseas earned an average of US$113,800 (approximately 163 million Korean won).
This disparity is largely due to the significantly larger scale of overseas companies, even if the ratio of labor costs to sales revenue does not differ much from U.S. companies.
Subsequently, the salaries of science and engineering professionals who moved overseas rose sharply, reaching US$269,800 (approximately 386 million Korean won) 10 years after obtaining their final degree. Domestic professionals with the same level of experience earned approximately 97.4 million Korean won, a quarter of their overseas counterparts.
Long-Term Salary Trends
Domestic science and engineering professionals needed 14 years after obtaining their degree to see their average annual salary exceed 100 million Korean won. The highest average salary was recorded 20 years after degree attainment, at 118.86 million Korean won.
In contrast, science and engineering professionals who moved overseas peaked in average annual salary 13 years after obtaining their degree, earning US$366,400 (approximately 524 million Korean won). This then declined, with those 20 years post-degree earning an average of US$198,300 (approximately 284 million Korean won) annually.
A source from the Bank of Korea stated, “While the average annual salary of domestic science and engineering professionals rises gradually with years of service, overseas professionals’ salaries increase sharply in the early stages of their careers and then lose correlation with tenure.” They added, “To prevent the overseas outflow of science and engineering talent, it is crucial to adopt a performance-based and flexible wage and compensation system.”