A study found that over the past 13 years, income gaps in Korean society have narrowed, but overall inequality has worsened as gaps in asset holdings, including real estate, have widened.
The National Assembly Research Service on the 28th released findings from a study that developed a "multidimensional inequality index" reflecting various areas related to inequality, including income, asset, education, and health.
According to the findings, over the past 13 years (2011–2023) the multidimensional inequality index rose from 0.176 to 0.190. A higher index means inequality has deepened.
By field, income inequality gradually decreased, but inequality in asset, education, and health worsened. The disposable income Gini coefficient, an indicator of income inequality, fell from 0.387 in 2011 to 0.323 in 2023. A Gini coefficient closer to 1 means greater inequality. Looking at income alone, inequality improved.
In contrast, asset inequality improved and then recently deteriorated again. The net worth Gini coefficient fell from 0.625 in 2012 to 0.589 in 2017, but began rising again in 2018 and reached 0.616 in 2024.
In 2011, income (38.9%) was the main driver of multidimensional inequality, but in 2023, asset (35.8%) was the most significant driver. The research service noted, "Given that 75% of household assets in Korea are real estate, household asset holdings are likely closely tied to changes in real estate prices, particularly dwellings."
In education, children from households in the top 20% of income were more likely to enter the top 50 universities in Korea, and in health, it was found that the lower the income, the more likely residents of eup and myeon areas and one-person households were to have poorer health.
Lee Gwan-hu, head of the National Assembly Research Service, said, "Public perception that multidimensional inequality—including asset, education, and health—has deepened is close to the truth," adding, "It is necessary to consider inequality as a key policy goal not only in income redistribution but across all areas of government policy, including real estate, taxation, finance, and welfare."