Seoul: Climbing the social ladder through one's own work has become increasingly challenging in Korea.
According to Yonhap News Agency, the National Data Office's 2023 Income Mobility Statistics revealed that only 17.3 percent of income earners aged 15 or older moved up by one or more income brackets from the previous year. Among those in the lowest 20 percent, a mere 29.9 percent managed to escape that tier, while a concerning 27.8 percent have remained in the bottom bracket for seven consecutive years. This data suggests a shift from an era where individuals could rise from humble beginnings to one where many remain trapped.
The statistics, which include only those with earned or business income, indicate that those who lost income entirely likely face even harsher realities. A society with low social mobility risks cementing inequality across generations. Another report from the National Assembly Research Service highlights that wealth and asset inequality in Korea has deepened, despite slight improvements in income distribution. Between 2011 and 2023, the Gini coefficient for disposable income showed improvement, but disparities in wealth, education, and health have grown.
The report points to soaring housing prices in Seoul and other metropolitan areas as a significant factor in widening the asset gap, with family wealth increasingly determining educational opportunities. Health disparities have also worsened, with lower-income, rural, and single-person households reporting poorer conditions. The study urges the government to prioritize inequality reduction in housing, taxation, and welfare policies. Stabilizing the property market is deemed essential, as youth despair largely stems from housing-price polarization.
Attention must also be given to young people entering the workforce, as data indicate a declining escape rate from the lowest-income tier among young workers. However, the Lee Jae Myung administration's labor policies have primarily focused on protecting those already employed rather than creating new jobs. Plans to extend the mandatory retirement age are particularly concerning, as only 21.8 percent of workplaces operate under a fixed retirement system. This change would mainly benefit unionized workers at large companies and in the public sector, potentially widening disparities with nonunionized and temporary workers, as well as small- and medium-sized firms.
To reduce inequality, the government must address structural divisions in the labor market, tackle complex issues across housing, taxation, and employment, and rationalize the tax system while ensuring fiscal sustainability. Prioritizing job creation over protection is essential for providing younger generations with a level playing field. When generational conflict is unavoidable, policies must first serve the interests of the young, a responsibility that the older generation owes to the future.