Wealth gap expands among young generations

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By Anna J. Park

The wealth gap among the country's 20somethings and 30somethings has widened, following fast-rising asset prices over the past couple of years. The top 20 percent asset bracket of people in their 20s and 30s hold 35 times more wealth than those in the lowest 20 percent asset bracket.

This is according to data submitted by Statistics Korea to Democratic Party of Korea lawmaker Kim Hoi-jae. The lawmaker's office announced Monday that the average asset size of local households led by those in their 20s and 30s stood at 356 million won ($277,000), up about 11 percent from last year's 318 million won.

Yet, when the average figure is examined closer, each asset bracket group logged a different rate of asset increases, widening the asset gap for the age group.

While the lowest 20 percent bracket had on average 27 million won, the top 20 percent bracket averaged 981 million won, widening by 12.8 percent from the past year. This means the top 20 percent asset group holds 35.27 times more than the lowest 20 percent asset bracket group, worsening compared to last year's ratio of 35.2. When the ratio is compared to the 33.21 times logged in 2019, one could easily see the country's asset polarization among those in their 20s and 30s has only deteriorated.

The divide in terms of income is also serious among the younger generation. The highest 20 percent income bracket among those in their 20s and 30s earned 128 million annually as of 2020, while the lowest 20 percent income bracket only garnered 19 million won. The figure shows the highest 20 percent group earns 6.52 times more than the lowest income group. The ratio showed a slight enhancement from 2019's 6.58 times, yet it is not enough to close the gap expanded by asset polarization due to fast-rising asset prices over the past years.

The lawmaker also pointed out that income difference cannot fully explain the whopping 35 times gap in their asset polarization, adding that much of the asset gap may have come from their parents' contribution.

"There should be a 'ladder of fairness' that could help close the gap between young people who received no financial help from their parents, and those who benefited from parental financial help," Rep. Kim said.

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