Wealth Gap Now South Korea's Top Inequality Driver, Study Finds

Wealth, not income, is emerging as the dominant factor fueling inequality in South Korea, with this trend being most pronounced among the younger population, according to a recent study. The "2026 Multidimensional Inequality Index" research, commissioned by the National Assembly Research Service and conducted by Professor Gye Bong-oh's team at Kookmin University, revealed that while the overall multidimensional inequality index saw a slight improvement to 0.185 in 2024 from 0.190 the previous year, the contribution of asset inequality has surged. Historically, income inequality was the largest contributor to the multidimensional inequality index, accounting for 39.2% in 2011. However, its share has steadily declined, reaching 33.0% in 2024. Conversely, asset inequality's contribution has dramatically increased. By 2023, it had already surpassed income inequality at 36.0%, and in 2024, it jumped by 4 percentage points to reach 40.0%, solidifying its position as the leading cause of inequality. Analysis by generation shows that while the elderly generation (born before 1960) still exhibits the highest inequality index at 0.209, it has improved from the previous year. The X generation (born 1971-1980) uniquely saw its inequality worsen, with the index rising from 0.161 to 0.165, driven by a sharp increase in asset inequality from 0.313 to 0.344. Millennials (born 1981-1990) and Gen Z (born after 1991) experienced worsening asset inequality, but improvements in other dimensions kept their overall multidimensional inequality indices relatively stable. The research team highlighted that the contribution of asset inequality has consistently grown, stating, "The effect of asset inequality is steadily increasing." They concluded that "income-centered redistribution policies alone have limited effects in alleviating inequality," underscoring the need for a broader approach to address the widening wealth gap.