Income polarization in South Korea worsened during the first quarter of 2024, reaching its lowest level in six years [1].

This trend highlights a growing economic divide where the wealthiest households benefit from corporate growth while the poorest struggle with inflation and basic living expenses.

According to a household survey from the National Data Agency, the top 20% of income earners, known as the fifth quintile, saw their monthly average income rise to 12,378,000 KRW [1]. This represents a 4.2% increase compared to the previous year [1]. These gains were largely driven by performance pay and bonuses from large corporations [1].

In contrast, the bottom 20% of earners, or the first quintile, saw a more modest increase [1]. Their monthly average income reached 1,170,000 KRW, a rise of 2.7% over the previous year [1].

Spending patterns further illustrate the financial strain on lower-income families. The monthly average consumption expenditure for the bottom 20% was 1,457,000 KRW [1]. This spending grew by 7.3% year-over-year [1], a rate that outpaced their income growth.

Meanwhile, the top 20% experienced a more balanced shift in spending. Their consumption expenditure increased by 359,000 KRW, marking a growth rate of 6.9% [1].

The disparity is captured in the equalized disposable-income quintile ratio, which stood at 6.59 for the period [1]. This metric indicates the gap between the highest and lowest earning groups in the country.

"Income polarization indicators for the first quarter of this year appeared to be the worst in six years," a YTN anchor said [1].

“Income polarization indicators for the first quarter of this year appeared to be the worst in six years”

The data suggests a structural decoupling of income and expenses for South Korea's most vulnerable citizens. While high-earners are capturing the benefits of corporate performance bonuses, low-income households are experiencing a 'cost-of-living squeeze' where essential spending rises faster than wages. This widening gap may signal a need for targeted social safety nets to prevent the lowest quintile from falling further into debt.