Business · Economy · 1 day ago
South Korea’s wealth gap widens as property values rise
A 2025 survey found that average household net wealth in South Korea rose 5% from a year earlier, reaching 471.44 million won as of March 2025.
Net wealth is what remains after debts are subtracted from assets.
But wealth among the lowest-income fifth of households fell 4.9%, while the richest 10% held 46.1% of all household net wealth.
Lower-income households have less money left to save after essential costs, while higher-income households can put more toward saving and investment.
In 2023, the lowest-income fifth spent 95.6% of its income on expenses, taxes and social contributions, compared with 53.2% for the highest-income fifth.
Rising home prices, especially in the Seoul metropolitan area, can increase the wealth of owners while making it harder for people without homes to buy one.
Research also identifies housing and stock ownership as factors that can widen wealth differences, and the survey found that income inequality rose in 2024.
Average household net worth rose 5.0% to 471.44 million won, but the net worth of households in the bottom income fifth fell 4.9%.
The top 10% of households held 46.1% of total household net worth, up 1.6 percentage points from the previous year.
A study found that low-income households had little income left after expenses, while high-income households could save and invest a larger share.
Rising property prices, particularly in the Seoul metropolitan area, were identified as another factor widening the wealth gap between homeowners and non-homeowners.
The 2024 Gini coefficient for equivalised disposable income rose to 0.325 from the previous year’s 0.323.
- Who
- South Korean households, with wealth gains concentrated among higher-wealth households.
- What
- The wealth gap widened as low-income households’ net worth fell and property prices rose.
- When
- The 2025 household survey measured net worth as of the end of March 2025; income-spending figures cited are for 2023.
- Where
- South Korea, with property-price effects highlighted in the Seoul metropolitan area.
- Why
- Low-income households have less income left to save, while higher-income households can save and invest more; rising property and stock prices also benefit asset holders.
This story does not have two clearly opposing sides.
No direct quotes in the coverage so far.
Households in the bottom income fifth spent 95.6% of their current income on living costs, taxes and social insurance, while the top fifth spent 53.2%.
The Gini coefficient for equivalised disposable income rose to 0.325, up 0.002 from the previous year.
Average household net worth was 471.44 million won, 5.0% higher than a year earlier; net worth for the bottom income fifth fell 4.9%.
Maeil Business published its report on widening wealth differences.
- Average household net worth
- 471.44 million won as of end-March 2025
- Annual change in average net worth
- Up 5.0%
- Bottom income fifth net worth
- Down 4.9%
- Share of net worth held by top 10%
- 46.1%, up 1.6 percentage points
- Bottom fifth income spent in 2023
- 95.6%
- Top fifth income spent in 2023
- 53.2%
Sources
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