Gap between top and bottom asset groups widens to a new high in 2022

The gap in assets between the wealthiest and poorest groups in South Korea has widened to a new high this year as assets held by the top 20 percent bracket increased amid a rise in real estate prices.

According to data from Statistics Korea on Wednesday, assets held by the top 20 percent households in Korea averaged 1.65 billion won ($1.2 million) as of end of March, which is 64 times more than the average 25.84 million won held by the bottom 20 percent group. The asset gap between the top and bottom groups was the widest since the agency began compiling related data in 2012. The previous high was 62.4 times in 2012.

Assets held by the wealthiest group increased sharply amid a boost in property market. According to Korea Real Estate Board, nationwide home sales price rose 7.47 percent over the past year in March.

Assets held by the top 20 percent group were up 9.1 percent or 137.69 million won from a year ago, helped by a 10.7 percent increase in property value.

Data showed that 98.6 percent of the top 20 percent group owned a real estate, while only 10.1 percent of the bottom group had any property.

Assets owned by the bottom 20 percent group were down 130,000 won from a year ago, becoming the only income group with a fall. Statistics Korea noted that many single households joined the bottom group as they broke away from their parents to become independent.

Asset inequality has also worsened with Gini coefficient that measures inequality in net assets or debt minus liability, rising to a 10-year high of 0.606. Gini coefficient ranks inequality on a scale of 0 to 1, with 1 indicating maximum inequality.