Economic disparity in South Korea is the extent by which income, most commonly measured by household or individual, is distributed in an uneven manner in South Korea . According to data during the 2010s, low-income earners[lower-alpha 1] make up to 40% of South Korea's entire labour force. Conversely, the highest income earners[lower-alpha 2] make up only 1–1.3% of the labour force. In general, 98.7% of South Koreans make less than annually. According to 2015 data, more than 63% of workers make less than Template:KRWConvert annually. Many South Koreans especially those of the younger generation feel that they are not benefiting during periods of economic growth, and have criticized the increasingly difficult socioeconomic situation and class stratification in the country, dubbing it as "Hell Joseon" (Korean: 헬조선). They have also described themselves as being a part of the Sampo generation, whereby they have given up on courtship, marriage, and having kids due to the high costs of living and unemployment, and consequently the N-po generation. Moreover, much of the country's income inequality can be attributed to the dominance of chaebols (Korean: 재벌; lit. "rich family"), which has also been seen by many South Koreans as highly corrupt and influential in the political system. Its dominance is also likely to last and engenders the risk of slowing down the transformation of the South Korean economy for the benefit of future generations. The country also has the highest levels of poverty among the elderly in the developed world. In 2018, about half of the country's elderly lived in poverty, three times the OECD average, with many of them homeless. As a result, South Korea regularly claims the highest suicide rate in the OECD and the wider developed world.
Economic disparity is often linked to low or limited social mobility, a situation which may instill a sense of hopelessness among South Korea's youth. Gambling, though extremely limited due to its legality in South Korea, can be a dangerous source of debt for South Koreans who are susceptible to gambling and gambling addiction. In 2017, the easy availability of cryptocurrrency in South Korea, combined with a lack of legal outlets for gambling, has contributed to gambling problems and associated debt. Others have also been led to suicide, which has remained the leading cause of deaths for a number of years.
There are many reasons for Economic disparity, but the following causes are mainly talked about in South Korea.
Corruption is a serious problem in South Korea; all four living former South Korean presidents have been sentenced to prison for various crimes ranging from abuse of authority to bribery and embezzlement; with two still currently serving their sentences.
Tertiary education was once seen by many South Koreans as a source of social mobility in the country. However, many now consider the education system to be elitist, resulting in only those connected to the chaebols and the government being able to easily get top spots in universities, civil service positions, while also for men even evading conscription entirely.
South Korea suffered a severe financial crisis around 1997 to 2001, and had to seek a loan from the International Monetary Fund (IMF) of about Template:KRWConvert to prevent total economic collapse. The crisis was damning to the country, causing its worst recession in the post-war era. GDP growth had a negative 6.5% rate in 1998. In the aftermath of the crisis, unemployment rose from pre-crisis levels of 2% to 9.8% in 1998 and 8.1% in March 1999.
The crisis also ensured a contraction in domestic investments. Conservative South Korean political parties attribute Economic disparity to the slump in the domestic economy and strengthening the nation's economic structure to be dependent on exports. However, prior to the crisis, local companies used to make lax external investments, and ironically these over-investments ever since had a positive impact on employment.
Many South Koreans believe that despite supposed economic recovery ever since, the country as a whole never really recovered from the crisis, with income gap widening especially among the middle and working classes.
South Korea is a hypercompetitive country, which results in enormous pressure. This is mainly as a result of sky high stakes in many aspects of South Korean society, including societal expectations such as education attainment, family background, and looks. Those who do not have significant connections or conform with Korean beauty standards are ostracized, leading to reduced economic opportunities before one is even born.
This also isn't helped by the physical appearance of many K-pop idols as well as celebrities, which has greatly impacted the beauty standards in the country.
The poverty of low-income people is getting worse due to the long-term deterioration of employment in South Korea. The government has claimed that it has tried to increase employment every time over the past few years, but with no significant results.
In 2018, the International Monetary Fund (IMF) mentioned that South Korea's income inequality was the poorest among 22 Asian-Pacific countries. In this article, while the nation's economic growth is growing fast, it also talked about inequality in household income due to the difficulty of finding jobs for young job seekers.
In January 2019, president Moon Jae-in's economic adviser Kim Hyun-chul resigned for disparaging that young, unemployed Korean graduates or retirees who couldn't find a job in the country should stop "blaming the country and the government" and to "leave the country to become Korean language teachers". He received severe public anger and criticism for his remark.
In 2020, COVID-19 pandemic has exacerbated income inequality in the country. The president blamed the deepening wealth gap between the rich and the poor to the pandemic, despite the fact that income inequality was already a major problem prior to the pandemic.