KDI Report 'Who Are the Middle Class in Korea?'
Monthly Income Over 7 Million Won Also Perceived as 'Middle or Lower Class'
"Gap Between Objective Class and Subjective Class Awareness"
A survey revealed that high-income households earning more than 7 million won per month perceive themselves as 'middle class' or 'lower class.' Among 100 high-income households, 11 held such views.
According to the report "Who Are the Middle Class in Korea" by Hwang Su-gyeong, Senior Researcher at the Korea Development Institute (KDI), and Lee Chang-geun, Professor at KDI Graduate School of International Policy, only 2.9% of respondents considered themselves upper class. This figure is strikingly low compared to the common classification of the top 20% as upper class. The survey was conducted with approximately 3,000 participants.
Among high-income households earning over 7 million won monthly, only 1.3% identified themselves as 'upper class.' Meanwhile, 76.4% saw themselves as 'middle class,' and 12.2% perceived themselves as 'lower class.' The researchers noted, "Even among those in the top 10% by income or assets, 71.1% and 78.4%, respectively, still judged themselves as middle class," highlighting a clear gap between objective class status and subjective class perception.
The researchers interpreted these results as possibly reflecting a deterioration in the income conditions of those who are objectively upper class but perceive themselves as middle class. Over the past decade (2011?2021), the total income share of the bottom 80% (1st to 4th quintiles) increased, while the income share of the top 20% (5th quintile) decreased from 44.3% to 40.0%.
Furthermore, when the researchers classified socioeconomic classes into five segments (upper class, psychological non-upper class, core middle class, vulnerable middle class, lower class), they found that the so-called 'psychological non-upper class'?high-income individuals who do not consider themselves upper class?had the highest rates of higher education, high income, managerial and professional occupations, and homeownership. The researchers cautioned, "The views of the psychological non-upper class may be exaggerated as social demands of the middle class."
OECD: "Monthly income of 1.67 million to 4.45 million won per person qualifies as middle class"
Meanwhile, the Organisation for Economic Co-operation and Development (OECD) defines the middle class as those earning 75% to 200% of the median income. The person positioned exactly in the middle when all citizens are ranked by income is considered middle class. The median income per person is about 2.22 million won per month, so earning between 1.67 million and 4.45 million won places one in the middle class. The Ministry of Economy and Finance has previously set the threshold between middle class and high income at an annual total salary of 78 million won (6.5 million won per month).
On the morning of the 9th at 10 a.m., President Yoon Suk-yeol held a press conference marking his second anniversary in office at the Yongsan Presidential Office, where he mentioned the 'middle class.' President Yoon stated, "The government will more vigorously pursue policies centered on the working class and middle class to achieve tangible improvements in people’s livelihoods," emphasizing, "We will enhance social mobility through employment and welfare policies and strengthen the middle class through industrial and market policies." He added, "Supporting socially vulnerable groups is essential for the virtuous cycle of growth and welfare," and said, "We will expand the recipients of livelihood benefits and increase support levels to improve the lives of the most disadvantaged."
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