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By KTimes
A new study revealed that the mental health of Korean millennials (born between 1981 and 1995) is significantly worse than that of both older generations and their global peers. Contributing factors include long working hours, rigid seniority-based promotion systems and limited career growth opportunities amid low birthrates and sluggish economic growth.
LG Business Research published a report titled "Warning Signs for the Mental Health of Korean Millennials" on Thursday, diagnosing a crisis in the mental well-being of millennials in their 30s and early 40s.
According to Deloitte’s workplace survey on millennials and members of Generation Z (those born between 1997 and 2012) globally, only 29 percent of Korean millennials rated their mental health as "good," compared to the global millennial average of 56 percent.
Another survey by the consulting firm Monitor in 2020 found that 49.6 percent of Korean workers in their 30s had experienced burnout due to stress, significantly higher than the 26.5 percent reported among workers in their 50s.
The report cited four major stressors affecting Korean millennials: fatigue from inefficient long working hours, frustration with seniority-based promotion systems, limited career advancement opportunities in a slow-growth economy and financial instability.
Job Korea, an employment website, identified excessive workloads as one of the leading causes of burnout among millennials. As of 2022, Korea's average annual working hours per employee stood at 1,901 hours, making it one of the longest among OECD member countries, following Colombia, Mexico, Costa Rica and Chile. Despite working these long hours, millennials often fail to receive recognition from older generations, who once worked over 2,200 hours per year without weekends or holidays.
The country’s rigid seniority-based salary and promotion system further exacerbates their frustration. Millennials, who place a high value on fairness, see significant wage gaps between junior and senior employees. According to the Korea Employers Federation, Korean workers with 30 years of service earn three times the salary of a first-year employee — far exceeding the 1.6 times in the U.K. and 2.3 times in Japan.
Deloitte’s survey also found that 65 percent of Korean millennials cited "lack of recognition and compensation for their work" as a major source of anxiety and stress at work, 12 percentage points higher than the global average of 53 percent.
The report warned that many Korean companies are struggling to provide younger employees with clear career growth opportunities. "The problem is that there are no clear solutions," the researchers noted, highlighting how most domestic firms are grappling with structural bottlenecks caused by an aging workforce and a highly specialized job market.
A Unico Search study showed that the executive promotion rate at Korea’s top 100 companies declined from 0.95 percent in 2011 to 0.76 percent in 2021. Meanwhile, the average age of executives rose from 51.7 years in 2012 to 53.2 years in 2022, making it increasingly difficult for younger employees to advance.
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Financial instability has also fueled millennial distress. Deloitte’s survey found that 40 percent of Korean millennials cited the cost of living as their top concern, but only 18 percent expected their financial situation to improve within a year.
Korea’s skyrocketing real estate prices have further intensified the sense of economic despair. According to the Korea Real Estate Board, as of January, the average apartment price in Seoul stands at 1.05 billion won ($787,000). With the average monthly household income coming in at 5.02 million won, a millennial would need to save every penny for 17 years and six months to afford a home. Even if they saved 50 percent of their monthly income, it would still take 35 years — leading many to feel that homeownership is an unattainable dream.
The report warned that worsening mental health among millennials is not just a personal issue but also a major economic risk.
Between 2019 and 2021, depression rates surged among Korean millennials, coinciding with the peak of the real estate boom. According to the Korea Disease Control and Prevention Agency, men in their 30s saw the largest increase in diagnosed depression among all adult age groups. Alarmingly, the percentage of those who "seriously considered suicide" increased nearly sixfold.
LG Business Research emphasized that "mental health issues have a greater impact on workplace productivity than physical illnesses."
A King’s College London study also found that the costs of "presenteeism" — where employees physically show up to work but underperform due to emotional distress — far exceed those of absenteeism. In Korea, these costs were estimated to be over 10 times higher than those caused by physical illnesses.
The researchers concluded, "Addressing mental health issues proactively is crucial. Without intervention, the negative effects on productivity and workplace morale will only worsen."
This article from the Hankook Ilbo, the sister publication of The Korea Times, is translated by a generative AI system and edited by The Korea Times.
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