Net Asset Inequality Hits Record High Since Data Began...Distribution Indicators Also Worsen

National Data Office Releases 2025 Household Finance and Welfare Survey
Net Asset Gini Coefficient Hits Highest Level Since 2012
Average Assets Reach 570 Million Won
Average Debt at 95.34 Million Won, Income at 74.27 Million Won

Last year, household net asset inequality in South Korea deepened to its highest level since records began. The Gini coefficient for net assets per household-calculated by subtracting liabilities from assets-reached its highest point since the survey was introduced in 2012. Households in the top income quintile accounted for nearly half of the nation’s total net assets, while the net asset share of all other quintiles declined. Not only asset distribution but also income distribution indicators worsened compared to the previous year, further amplifying inequality.

According to the "2025 Household Finance and Welfare Survey" released by the National Data Office on December 4, as of the end of March this year, the average household assets in South Korea stood at 566.78 million won, up 4.9% from the previous year. Financial assets increased by 2.3% due to higher savings, while real assets rose by 5.8%. Kim Hyunki, Director of Welfare Statistics at the National Data Office, explained, "Real assets grew by 1.3% last year, but this year they increased by 5.8%, with real estate rising by 5.8%, indicating a significant increase in the value of real assets."

Net assets, calculated by subtracting liabilities from assets, amounted to 471.44 million won, a 5.0% increase from the previous year. However, inequality intensified when analyzed by income decile. Households in the top 10% by assets accounted for 46.1% of total household assets, up 1.6 percentage points from the previous year. In contrast, the asset share of all deciles from the third to the ninth decreased compared to the previous year.

Even when dividing households into five income quintiles, the top quintile’s net asset share accounted for 47.3% of the total, up 1.3 percentage points from 46.0% the previous year. In contrast, the shares for the first quintile (-0.6%), second quintile (-0.2%), third quintile (-0.4%), and fourth quintile (-0.1%) all declined. The increase in net assets among high-income households drove the overall rise in net assets. In terms of net asset holdings, only the first quintile saw a decrease, with net assets dropping by 4.9%, while all other quintiles experienced increases. Notably, the net assets of the fifth quintile rose by 7.9% compared to the previous year.

As a result, the net asset Gini coefficient-which measures net asset inequality and approaches 1 as inequality worsens-rose to 0.625, up 0.014 from 0.612 the previous year. This is the highest level since related statistics began in 2012. Kim Hyunki, Director of Welfare Statistics at the National Data Office, explained, "This is because net assets among high-income households increased, while both the net asset holdings and growth rate of the first quintile declined."

All Distribution Indicators Worsen...Inequality Increases Compared to Last Year

Distribution indicators such as disposable income also deteriorated. Based on equivalized disposable income (market income + public transfer income + public transfer expenditure), the Gini coefficient for the working-age population was 0.399, up 0.002 from 0.397 the previous year. The Gini coefficient is an indicator of income inequality, with 0 indicating perfect equality and 1 indicating complete inequality. The increase reflects worsening inequality compared to the previous year.

The income quintile ratio based on equivalized disposable income also rose to 5.78, up 0.06 points from 5.72 the previous year. The income quintile ratio is a measure of income distribution calculated by dividing the average income of the top 20% by that of the bottom 20%; a higher value indicates greater inequality. This, too, signifies increased inequality compared to the previous year. The relative poverty rate-the proportion of people with income below 50% of the median equivalized disposable income-also rose by 0.4 percentage points to 15.3%. In contrast, among the retirement-age population, the income quintile ratio based on equivalized disposable income decreased by 0.21 points to 6.90, down from 7.11 the previous year.

Kim explained, "The main reason for the overall deterioration in distribution indicators is that the income growth rate for the first quintile was lower than that of the fifth quintile. In other words, the income gap widened, which negatively affected income distribution indicators." He added, "Among those aged 39 and under, the employment growth rate for households in the first quintile slowed somewhat, and as private consumption contracted, the increase in business and property income was limited." In fact, the average income of households in the fifth quintile rose by 4.4% to 173.38 million won, while the first quintile saw only a 3.1% increase and the second quintile a 2.1% increase. Last year, the average household income was 74.27 million won, up 3.4% from 71.85 million won the previous year.

Meanwhile, average household debt rose by 4.4% to 95.34 million won compared to the previous year. Financial liabilities increased by 2.4% to 67.95 million won, while lease deposits surged by 10.0% to 27.39 million won. The growth rate of lease deposits was the highest since related statistics began in 2012. Kim explained, "Lease deposits include not only residential housing but also commercial property deposits. While jeonse (lump-sum lease) decreased by 1.7%, monthly rent increased by 5.8%. It is important to consider both household and commercial property deposits together."