Wealth inequality in South Korea

{{Economics}}
'''Wealth inequality in South Korea''' is notably much more pronounced than most other countries in the wider developed world. Specifically, it is the extent to which wealth, most commonly measured by household or individual, is distributed in an uneven manner in [[South Korea]]. 

According to government data curated during the late 2010s, low-income earners, which relates to earning ₩11 million (US$9,439.16) or less annually, make up to 40% of South Korea's entire labour force.<ref name=":0" /> Conversely, the highest income earners, which relates to earning ₩100 million (US$85,810.58 or more annually, make up only 1% of the labour force. In general, 98.7% of South Koreans make less than ₩90 million (US$77,229.52) annually.<ref name=":0">{{cite web|title=연봉금액별 인구수 및 근로소득액|url=http://blog.daum.net/hawoomom/22|last=하우맘|website=Daum블로그|language=ko}}</ref>
According to 2015 data, 63% of workers make less than ₩31.05 million (US$26,644.18) annually.<ref name="양극화:">{{cite web|title=근로소득자의 양극화|url=https://news.naver.com/main/read.naver?mode=LSD&mid=sec&sid1=100&oid=031&aid=0000357539|language=ko}}</ref>

In response, many South Koreans especially of the younger generation feel that they have not benefited from the country's periods of economic growth, and have criticized the socioeconomic situation and class stratification in the country, even dubbing a specific term of "{{wpl|Hell Joseon}}" (헬조선).<ref name="ABCAU">{{cite web |url=https://www.abc.net.au/news/2020-01-30/south-korea-hell-joseon-sampo-generation/11844506?nw=0 |title='Hell Joseon' and the South Korean generation pushing to a breaking point|last=Williams |first=Mike |date=30 January 2020 |website=abc.net.au |publisher=[[Australian Broadcasting Corporation]]}}</ref> The problem is significant enough that there has been two successive generations whereby many have given up on courtship, marriage, and having kids due to the high costs of living and unemployment, known as the {{wpl|Sampo generation}} and {{wpl|N-po generation||.}}<ref>{{cite web|url=http://english.hani.co.kr/arti/english_edition/e_national/739886.html|title=Lashing out at "Hell Joseon", young’uns drive ruling party’s election beatdown|website=english.hani.co.kr}}</ref><ref name="SCROIN">{{cite web |url=https://scroll.in/article/913847/why-young-people-in-south-korea-are-staying-single-despite-governments-efforts-to-spark-dating |title=Why young people in South Korea are staying single despite government’s efforts to spark dating |last=Qian |first=Yue |date=26 February 2019 |website=scroll.in |publisher=Scroll.in}}</ref>

==Overview==
Much of the country's [[income inequality]] can be attributed to the dominance of {{wpl|chaebols}} (재벌), which include multinational companies such as {{wpl|Samsung}} and {{wpl|LG||,}} seen by many South Koreans as being highly corrupt and influential in the political system.<ref>{{cite web |last1=Marlow |first1=Iain |title=South Korea’s chaebol problem |url=https://www.theglobeandmail.com/report-on-business/international-business/asian-pacific-business/south-koreas-chaebol-problem/article24116084/ |website=The Globe and Mail|language=en-CA |date=24 April 2015}}</ref><ref>{{cite web |last1=Albert |first1=Eleanor |title=South Korea’s Chaebol Challenge |url=https://www.cfr.org/backgrounder/south-koreas-chaebol-challenge |website=cfr.org |publisher=Council of Foreign Relations |date=4 May 2018 |quote=A group of massive, mostly family-run business conglomerates, called chaebol, dominates South Korea’s economy and wields extraordinary influence over its politics.}}</ref>

The country also has the highest levels of [[poverty]] among the elderly in the developed world.<ref name="Jeon">Jeon, B., Haruko, N., Soonman, K., Tomoko, I., & Nanako, T. (2017). Disability, poverty, and role of the basic livelihood security system on health services use among the elderly in South Korea. In Social Science & Medicine,(178), 175–183. Retrieved 6 May 2019.</ref> In 2018, about half of the country's elderly lived in poverty, three times the OECD average, with many of them homeless.<ref>{{cite web |last1=Shin |first1=Ji-Hye |title=Why do old people pick up cardboard in Seoul? |url=http://www.koreaherald.com/view.php?ud=20210225000695 |website=koreaherald.com |publisher=The Korea Herald}}</ref> As a result, South Korea regularly claims the highest [[suicide]] rate in the OECD and the wider developed world.<ref>{{cite web|first=Stephen|last=Evans|url=https://www.bbc.com/news/magazine-34710403|title=Korea's hidden problem: Suicidal defectors|date=5 November 2015|work=BBC News|location=United Kingdom of Great Britain and Northern Ireland|publisher=British Broadcasting Corporation|quote=South Korea consistently has the highest suicide rate of all the 34 industrialized countries in the OECD.|archive-date=2 June 2016|archive-url=https://web.archive.org/web/20160602093956/http://www.bbc.com/news/magazine-34710403|url-status=live}}</ref>

==Effects on South Korean youth==
Wealth inequality is often linked to low or limited social mobility, a situation which may instill a sense of hopelessness among South Korea's youth.<ref>{{Cite news|last=Chang|first=Ha-Joon|date=25 February 2018|title=How to Break Korea's Barriers to Social Mobility|work=New Europe|url=https://www.neweurope.eu/article/how-to-break-koreas-barriers-to-social-mobility/}}</ref> 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 addiction.<ref>{{Cite web|title=Household Debt Bomb|series=Undercover Asia|network=Channel News Asia|date=7 April 2020|number=5|url=https://www.channelnewsasia.com/news/video-on-demand/undercover-asia/household-debt-bomb-12617210|series-no=7|time=14:52}}</ref> In 2017, the easy availability of cryptocurrrency in South Korea,<ref>{{Cite news|date=26 February 2018|title=South Korea's Cryptocurrency Addiction Explained|work=Foreign Exchange Live|url=https://www.foreignexchangelive.com/south-koreas-cryptocurrency-addiction-explained/}}</ref> combined with a lack of legal outlets for gambling, has contributed to gambling problems and associated debt.<ref>{{cite web|title=[SNS돋보기] '일확천금' 비트코인 중독…"도박보다 무섭네"|url=https://news.naver.com/main/read.nhn?mode=LSD&mid=sec&oid=001&aid=0009764636&sid1=001|website=news.naver.com|language=ko}}</ref> Others have also been led to suicide, which has remained the leading cause of deaths for a number of years.<ref>{{cite web |title=Suicide remains leading cause of death for S. Korean teens, youths |url=http://www.koreaherald.com/view.php?ud=20200427000687 |website=koreaherald.com |publisher=Korea Herald}}</ref>

==Government view==
In January 2019, president [[Moon Jae-in]]'s economic adviser Kim Hyun-chul was forced to resign amid severe public anger and criticism after disparaging young, unemployed Korean graduates or retirees who couldn't find a job in the country, saying they should stop "blaming the country and the government" and "leave the country to become Korean language teachers".<ref>{{cite news|date=29 January 2019|url=https://koreajoongangdaily.joins.com/news/article/article.aspx?aid=3058858 |title=Moon’s economic adviser resigns over ‘Hell Joseon’ jab |work=Korea JoongAng Daily}}</ref>

==In popular culture==
*''{{wpl|Default (2018 film)|Default}}'', a South Korean drama film, portrays how the 1997 financial crisis affected South Koreans differently, with the middle and working classes disproportionately affected.<ref>{{cite web|url=http://www.civicnews.com/news/articleView.html?idxno=21651|title=영화 '국가부도의 날'이 주는 교훈, "위기는 반복된다, 잊지 말자 IMF사태"|date=4 April 2019|website=CIVIC뉴스|language=ko}}</ref>
*The film, ''{{wpl|Parasite (2019 film)|Parasite}}'' by {{wpl|Bong Joon-ho}}, depicted drastic inequality between South Korea's wealthy and the poor.<ref name=":1">{{cite web|last=Bloomberg|first=David Fickling {{!}}|title=Analysis {{!}} What 'Parasite' Misses About Inequality in South Korea|url=https://www.washingtonpost.com/business/what-parasitemisses-about-inequality-in-south-korea/2020/01/11/fa9bdace-34d6-11ea-971b-43bec3ff9860_story.html|archive-url=https://web.archive.org/web/20200112040424/https://www.washingtonpost.com/business/what-parasitemisses-about-inequality-in-south-korea/2020/01/11/fa9bdace-34d6-11ea-971b-43bec3ff9860_story.html|url-status=dead|archive-date=12 January 2020|website=Washington Post|language=en}}</ref>
*{{wpl|Hwang Dong-hyuk}}, director and writer of the South Korean survival drama television series ''{{wpl|Squid Game}}'', mentioned that he conceived the idea of the show based on his own personal experiences witnessing the drastic class disparity within the country, as well as his own severe economic struggles early in his life.<ref name="cnn interview">{{cite web | url = https://www.cnn.com/style/article/squid-game-director-hwang-dong-hyuk-spc-hnk/index.html| archive-url=http://web.archicve.org/web/20211008014926/https://edition.cnn.com/style/article/squid-game-director-hwang-dong-hyuk-spc-hnk/index.html| archive-date=8 October 2021 | title = 'Squid Game' director Hwang Dong-hyuk: 'This is a story about losers' | first1 = Jane | last1 = Sit | first2 = Liz | last2 = Kang | date = 7 October 2021 | work = [[CNN]] }}</ref><ref>{{cite web |last1=Young |first1=Jin Yu |title=Behind the Global Appeal of ‘Squid Game,’ a Country’s Economic Unease |url=https://www.nytimes.com/2021/10/06/business/economy/squid-game-netflix-inequality.html |website=nytimes.com |publisher=The New York Times}}</ref><ref>{{cite news |last1=Frater |first1=Patrick |title=‘Squid Game’ Director Hwang Dong-hyuk on Netflix’s Hit Korean Series and Prospects for a Sequel (EXCLUSIVE) |url=https://variety.com/2021/global/asia/squid-game-director-hwang-dong-hyuk-korean-series-global-success-1235073355/| archive-url=https://ghostarchive.org/archive/20211008/https://variety.com/2021/global/asia/squid-game-director-hwang-dong-hyuk-korean-series-global-success-1235073355/| archive-date=8 October 2021 |date=24 September 2021}}</ref>

===Books===
*{{cite journal |last1=Snodgrass |first1=Donald R. |title=Education and Economic Inequality in South Korea |date=1977 |url=https://books.google.com/books?id=2WVhPQAACAAJ&dq |publisher=Harvard Institute for International Development, Harvard University |language=en}}
*{{cite journal |last1=Koo |first1=Hagen |title=The Changing Faces of Inequality in South Korea in the Age of Globalization |journal=Korean Studies |date=2008 |volume=31 |issue=1 |pages=1–18 |doi=10.1353/ks.2008.0018}}
*{{cite journal |last1=Burt |first1=Matthew E. |last2=Namgi |first2=Park |title=Education Inequality in the Republic of Korea: Measurement and Causes |journal=Inequality in Education |date=2008 |pages=261–289 |doi=10.1007/978-90-481-2652-1_11}}
*{{cite journal |last1=An |first1=Chong-Bum |last2=Bosworth |first2=Barry |title=Income Inequality in Korea: An Analysis of Trends, Causes, and Answers |date=2013 |url=https://books.google.com/books?id=1k3LMgEACAAJ |publisher=Harvard University Asia Center |language=en}}
*{{cite journal |last1=Shin |first1=Kwang-Yeong |last2=Kong |first2=Ju |title=Why Does Inequality in South Korea Continue to Rise? |journal=Korean Journal of Sociology |date=31 December 2014 |volume=48 |issue=6 |pages=31 |doi=10.21562/kjs.2014.12.48.6.31}}
*{{cite journal |last1=Chiang |first1=Min-Hua |title=Contemporary South Korean Economy: Challenges and Prospects |date=September 2017 |doi=10.1142/9789813207240_0005}}
*{{cite journal |last1=Shin |first1=Kwang-Yeong |title=A new approach to social inequality: inequality of income and wealth in South Korea |journal=The Journal of Chinese Sociology |date=17 September 2020 |volume=7 |issue=1 |pages=17 |doi=10.1186/s40711-020-00126-7 |location=South Korea}}
*{{cite journal |last1=Park |first1=Sehoon |last2=Park |first2=Gi Chan |last3=Park |first3=Jina |last4=Kim |first4=Ji Eun |last5=Yu |first5=Mi-yeon |last6=Kim |first6=Kwangsoo |last7=Park |first7=Minsu |last8=Kim |first8=Yong Chul |last9=Kim |first9=Dong Ki |last10=Joo |first10=Kwon Wook |last11=Kim |first11=Yon Su |last12=Lee |first12=Hajeong |title=Disparity in Accessibility to and Prognosis of Kidney Transplantation According to Economic Inequality in South Korea: A Widening Gap After Expansion of Insurance Coverage |journal=Transplantation |date=February 2021 |volume=105 |issue=2 |pages=404–412 |doi=10.1097/TP.0000000000003256}}

==External links==
*[https://www.eastasiaforum.org/2016/08/10/rising-inequalities-in-south-korea/ Rising inequalities in South Korea] by the ''East Asia Forum''

==References==
{{reflist|2|80%}}

[[Category:South Korea]]
[[Category:Denialism]]
[[Category:Economics]]
[[Category:Government incompetence]]
[[Category:Social justice]]
[[Category:Social science]]
[[Category:Tax]]

Categories: South Korea, Denialism, Economics, Government incompetence, Social justice, Social science, Tax