Bank of Korea Gov. Shin Hyun-song delivers a speech during an international conference at the central bank in Seoul, South Korea, 01 June 2026. Photo by YONHAP / EPA
June 11 (Asia Today) -- South Korea is facing widening gaps in both wealth and income, with young people and those without homes losing ground economically, Bank of Korea researchers said Wednesday.
The central bank's research department made the assessment in a report titled "Household Polarization in the Korean Economy and Its Spillover Effects." The report said South Korea is confronting a form of dual polarization as asset and income inequality expand at the same time.
According to the report, South Korea's net wealth Gini coefficient fell to 0.584 in 2017 but has since risen, reaching 0.625 last year. A Gini coefficient closer to zero indicates greater equality, while a figure closer to one indicates greater inequality.
The report identified rising real estate prices as a key factor behind the widening asset gap. It said higher property prices have played a central role in explaining movements in wealth inequality.
