Korea Faces Escalating Income and Wealth Inequality Crisis

Income inequality in Korea is reaching unprecedented levels, with the gap between the nation’s wealthiest and poorest households widening at an alarming rate. Recent data from Statistics Korea reveals that the income disparity between the top and bottom 10% of households has surpassed $136,000 for the first time. This figure represents the most significant gap recorded since the statistics began in 2017, underscoring a troubling trend of deepening economic polarization.

Despite mounting concerns about rising inequality, Korea’s efforts to address this divide have yielded little progress. Political and economic policies have largely failed to tackle the root causes of this growing disparity.

The widening gap is also evident in the performance of businesses, where large corporations continue to flourish while small- and medium-sized enterprises (SMEs) face significant challenges. In 2023, the production index for large companies rose to 114.8, a 5.2% increase from the previous year and the highest growth rate since 2015. Conversely, the index for SMEs dropped to 98.1, reflecting a 0.9% decline. This economic imbalance exacerbates income inequality and jeopardizes the livelihoods of workers dependent on smaller businesses.

The social and economic consequences of this growing divide are severe. As large corporations accumulate wealth and influence, smaller businesses and workers experience stagnant or declining incomes. This creates a vicious cycle that leaves vulnerable groups—such as self-employed individuals, small business owners, and low-income workers—struggling to keep up. Experts warn that if this trend continues unchecked, it could inflict lasting harm on Korea’s social fabric, deepening class divides and weakening societal cohesion.

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