"Same 2030 Generation..." Growing Asset Gap Causes Sighs Among Young People [Heo Midam's Youth Report]

Top 20% of 2030 Have Average Assets of 870 Million Won... 35 Times That of Bottom 20%
Experts Say "Solving Employment Issues Can Reduce Asset Gap"

Recently, the asset gap within the MZ generation has deepened, leading some young people to express feelings of relative deprivation. The photo is unrelated to any specific expressions in the article. [Image source=Yonhap News]

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[Asia Economy Reporter Heo Midam] "No matter how hard I try, it feels futile because I can't beat the 'gold spoon' generation."

It has been revealed that the wealth gap within the MZ generation (Millennials + Generation Z) is deepening. In particular, the assets of the top 20% of households in their 20s in South Korea were found to be 35 times those of the bottom 20%, causing some young people to express feelings of emptiness. Despite their efforts, young people sigh with self-deprecation, believing they cannot overcome the so-called 'parental chance.' Experts emphasize that solving youth employment issues should be the priority to reduce this gap.

Recently, Kim Hoe-jae, a member of the Democratic Party of Korea, analyzed microdata from the Statistics Korea Household Finance and Welfare Survey and found that last year, the average assets of households headed by MZ generation members amounted to 318.49 million KRW, an increase of 22 million KRW compared to 296.49 million KRW in 2019.

Although the overall average assets increased, the wealth gap within the MZ generation widened. Last year, the average assets of the top 20% (5th quintile) within the MZ generation reached 870.44 million KRW, up by 70.31 million KRW from the previous year. Meanwhile, the average assets of the bottom 20% (1st quintile) were only 24.73 million KRW, increasing by a mere 640,000 KRW compared to the previous year.

Accordingly, the asset quintile ratio increased from 33.21 times in 2019 to 35.20 times last year. The larger the ratio, the more the inequality has worsened.

The growing wealth gap among young people is linked to the 'parental chance.' Those born into wealthy families often live comfortably with economic support from grandparents and parents. However, young people without parental support try various means to grow their assets, such as 'Yeongkkeul' (investing by pooling all their resources) and 'Debt Investment' (investing by borrowing). Yet, with housing prices rising daily, it is difficult to buy a home solely with labor income.

Commuters are walking at the Gwanghwamun Sejong-daero intersection in Jongno-gu, Seoul. Photo is unrelated to specific expressions in the article.

Given this situation, some young people express feelings of relative deprivation. The phenomenon of 'the rich get richer, the poor get poorer' has intensified, leading to criticism that no matter how hard one tries, the already widened class gap cannot be reduced.

Kim, a 27-year-old office worker in his second year, also voiced his frustration. He said, "My monthly salary is just over 2 million KRW. After fixed expenses like rent and phone bills, there is hardly any money left." He expressed dissatisfaction, saying, "'Rising from humble beginnings' is an old saying. If you're not a 'gold spoon,' it's become a world where you can't even dream of owning a home."

Meanwhile, many young people have a pessimistic outlook on the future. According to data analyzed by the Seoul Metropolitan Government using the Seoul Survey and resident registration population statistics, the MZ generation rated their social mobility potential at 4.74 out of 10 last year, down from 5.16 in 2015 for the same question.

Kang, a 25-year-old university student, said, "Thinking about the future is bleak. In the past, I had desires to marry and have children, but imagining my children struggling makes me not want to have kids." He added, "Marriage is only possible if you have economic stability."

Experts predict that solving the employment crisis could reduce the wealth gap among young people. Professor Kim Taegi of Dankook University's Department of Economics said, "Since young people lack tangible assets like real estate or stocks, labor income is important. If youth employment issues are resolved, labor income will increase, and the wealth gap will narrow compared to now."