The income class of wealthy people in our country appears to be very solid. Six years ago, 63% of the top 20% income quintile remained in the 'top quintile' six years later. On the other hand, 31% of the bottom 20% income quintile remained in the lowest income quintile for six years.
Statistics Korea announced on the 18th the '2017-2022 Income Movement Statistics Development Results.' The income movement statistics are the first statistics released by Statistics Korea after beginning development last year. They are intended to support policy preparation to improve social mobility and support vulnerable groups, as part of the government's key economic policy of implementing a 'dynamic economy.' The statistics are based on a sample of about 11 million people.
As of 2022, the proportion of people who experienced movement in their income quintile, such as rise or fall, was 34.9%. Of these, 17.6% experienced an income quintile rise, while 17.4% experienced a fall. The remaining 65.1% saw no change in their income quintile.
Among all quintiles, mobility was greatest in the second quintile. In the second quintile, 21.3% moved down to the first quintile, while 28.8% moved up to the third quintile or higher. The next most active movements were seen in the third and fourth quintiles. The bottom 20% (first quintile) and the top 20% (fifth quintile) remained stable. Particularly among the upper class, 86% of those in the fifth quintile maintained the same income quintile as the previous year.
Even when looking at the maintenance rate of the first and fifth quintiles over the broad period of 2017-2022, it showed that the higher the income class, the longer individuals tend to remain in that class. Among those in the fifth income quintile in 2017, 63.1% maintained their quintile status by 2022. In the case of the first income quintile, 31.3% remained in the first quintile during the same period. Statistics Korea explained, "The proportion of people escaping from the first income quintile decreased as the duration extended."
By gender, women's income mobility was more pronounced. In 2022, the proportion of upward income quintile movement was higher among women (18%) than men (17.2%). The downward proportion was also higher for women (18%) compared to men (16.8%). By age group, income mobility was high among the younger population. The income quintile movement rate was 41% for young adults (ages 15-39), and 32.2% and 25.7% for middle-aged (ages 40-64) and elderly individuals, respectively. While young adults had a higher upward movement rate than downward, the elderly and middle-aged demographics saw a higher downward movement rate.
By region, upward mobility was higher in Incheon, Jeju, and Gyeonggi, and lower in Sejong, South Jeolla, and North Jeolla. Regions with high downward mobility included Incheon, Jeju, and Gyeonggi, while it was lower in Ulsan, Gangwon, and North Jeolla. Sejong, North Jeolla, and Ulsan were identified as regions where income quintiles remained solid over time.
Meanwhile, in absolute terms, 64.4% of people experienced an increase in income in 2022 compared to the previous year, while 32.9% saw a decrease. However, the rate of income increase appears to be slowing. Until 2019, the proportion of people with over a 50% increase in income was the highest, but since 2020, the proportion of people with less than a 10% increase in income (22% in 2022) has become the most common.