The World's Top 5 Wealthiest Increased Assets by 500 Trillion Won in 3 Years... 5 Billion People Became Poorer

Oxfam Davos Forum 'Inequality Inc.' Report
"A Decade of Division... Ending Poverty Difficult for 230 Years"

During the approximately three years of the COVID-19 pandemic, the assets of the world's top five billionaires more than doubled, but about 5 billion people became poorer than before, widening the wealth gap.

On the 15th (local time), the international relief and development organization Oxfam pointed out in its "Inequality Inc." report, released to coincide with the opening of the World Economic Forum (WEF) annual meeting, the "Davos Forum," that "the extreme increase in wealth since 2020 is becoming entrenched." It added, "In just three years, we have experienced a global pandemic, war, a cost-of-living crisis, and climate collapse," diagnosing that "this marks the beginning of a 'decade of division,' where the gap between the wealthy and the poor, minorities and majorities, grows even wider."

The photo is not related to the specific content of the article. [Image source=Pixabay]

The report revealed that the combined assets of the world's top five wealthiest individuals increased from $405 billion (approximately 532.6 trillion KRW) in 2020 to $869 billion (approximately 1,142.7 trillion KRW) as of November 2023, more than doubling. Their assets grew by $14 million (approximately 1.841 billion KRW) every hour. Additionally, the total assets of all billionaires rose by 34% during the same period, reaching $3.3 trillion (approximately 4,339.5 trillion KRW). This growth rate is three times faster than inflation. If this trend continues, the report predicts that the world's first "tens-of-trillionsaire" will emerge within the next decade, and poverty will not be eradicated for 230 years.

Looking solely at financial assets, the top 1% of wealthy individuals hold 43% of the world's financial assets. Regionally, in Asia, the top 1% own 50% of all financial assets, while in the Middle East and Europe, they hold 48% and 47%, respectively.

During the COVID-19 pandemic, large corporations prospered. The net profits of the world's top 148 companies reached a total of $1.8 trillion (approximately 2,369 trillion KRW) by the first half of 2023, a 52% increase compared to the average net profits over the previous four years.

However, the report pointed out that the distribution of this generated wealth has been unequal, intensifying the rich-get-richer, poor-get-poorer phenomenon.

Between July 2022 and June 2023, 82% of the profits earned by 96 global large corporations were distributed to "super-rich" major shareholders. Conversely, only 0.4% of 1,600 large corporations were found to pay a "living wage"?an income level above the minimum wage that allows workers and their families to live with dignity.

According to the report, 69% of global personal assets and 74% of billionaires' wealth are concentrated in Northern Hemisphere countries, which make up 21% of the world's population. Meanwhile, low- and lower-middle-income countries face the challenge of repaying approximately $500 million (about 657.5 billion KRW) daily in interest and debt repayments until 2029.

Furthermore, wages for 791 million workers worldwide have failed to keep pace with inflation, resulting in a loss of $1.5 trillion (approximately 1,972.5 trillion KRW) over the past two years. This equates to about one month's (25 days) worth of wages lost per worker.

Inequality Corporation Report
[Image source provided by Oxfam]

The gender wage gap was also significant. Women are concentrated in jobs with the lowest wages and job security, and as of 2019, female workers earned only 51 cents for every dollar earned by male workers.

The report proposed measures to alleviate inequality, including guaranteeing living wages, ensuring access to healthcare and education, imposing caps on CEO salaries, levying excess profit taxes and wealth taxes, breaking up monopolies, and democratizing patent regulations. Amitabh Behar, interim CEO of Oxfam International, stated, "Inequality is not an accident," pointing out that "the billionaire class ensures that corporations generate more wealth for them at the expense of the majority."