Korea’s wealth gap widens as property divide grows

(News1)

South Korea’s wealth gap has widened to the largest level despite a narrowing income gap as property divide grows between those that own homes in key areas of the Seoul metropolitan region and those that do not.

According to the 2025 household finance and welfare survey released Thursday by the Ministry of Data and Statistics, the average net assets of households in the top 20 percent stood at 1.75 billion won ($1.19 million) as of the end of March 2025. This is 44.9 times greater than the 38.9 million won held by households in the bottom 20 percent bracket, widening further from last year’s 42.1-fold gap.

In 2015, the net asset gap was 33.5 times.

The average household assets in Korea were 566.8 million won as of March, up 4.9 percent from a year earlier.

The survey also showed that the net asset Gini coefficient, which measures inequality in household assets, reached 0.625, the highest level since related statistics began in 2012.

A figure closer to 1 indicates a wider gap between the top and bottom groups.

Real income disparity, on the other hand, has gradually eased over the long term.

Although nominal income polarization continues between high and low earners, the gap in disposable income has narrowed because the government collects more taxes and social insurance contributions primarily from higher-income groups.

In fact, the income quintile ratio – showing the gap between the top and bottom 20 percent – fell from 8.25 in 2011 to 5.78 in 2024.

“Some claim income inequality is also expanding, but the reality is the opposite,” said Kim Nak-nyeon, president of the Academy of Korean Studies and professor emeritus at Dongguk University. “When considering not only cash payments but also in-kind benefits such as medical and education services, the income gap narrows even further.”