Seoul, South Korea – South Korea's household wealth gap has widened despite a recent decline in overall debt, according to the 2024 Household Financial Survey released by the Korea National Statistical Office on Tuesday.

The survey, conducted on 20,000 households, revealed that the average household asset value rose 2.5% to 540.22 million won ($408,800) in 2024, primarily driven by increases in financial assets (6.3%) and real estate (1.3%). 1  However, this growth was concentrated among high-income households, exacerbating wealth inequality.

For the first time since 2011, average household debt decreased by 0.6%. The decline can be attributed to a decrease in both mortgage and consumer debt. Despite this overall decrease, the average debt of households with debt actually increased by 1.6%.

While the survey indicated a slight improvement in overall household financial health, with the debt-to-asset ratio falling to 16.9%, the data also highlighted a growing wealth gap. Households in the top 20% of income earners saw their share of total assets increase to 45.8%, while those in the bottom 20% experienced a decline in net assets.

Furthermore, the survey revealed a growing disparity between young and older generations. While the proportion of households with an annual income exceeding 100 million won reached a record high, income growth for households headed by individuals aged 30 or younger lagged significantly behind the inflation rate.

Experts attribute these trends to a combination of factors, including government policies, demographic changes, and economic fluctuations. The findings underscore the ongoing challenges faced by South Korea in addressing income inequality and ensuring financial stability for its citizens.