South Korea: Urban Household Real Income Falls for 80%, Only Top Earners See Gains

South Korea's urban households experienced a significant drop in real income during the first quarter, with the gains concentrated solely among the wealthiest segment of the population. Only the top 20% of households saw their real income rise, by approximately 160,000 won, while the remaining 80% faced a reduction.

This marks a concerning trend, as it is the first time since the second quarter of 2023 that real income has fallen across all lower income brackets (the bottom four quintiles). Real income, which accounts for inflation, showed declines in the 1st to 4th quintiles, with the 4th quintile experiencing the largest decrease of 2.3% or 130,585 won per month.

The situation is unprecedented since data collection began in the first quarter of 2020. While previous periods saw declines across lower income groups, the top quintile's income also decreased. This current quarter's data, showing a rise only for the top 20% and a fall for all others, highlights a widening and stark income disparity in South Korea.