Distribution of Income and Wealth by Quintile and International Comparison

Published on 9 July 2021
Published by Industry & Energy Analysis Division

   This report looks beyond the scope of existing analyses of socio-economic equity with a focus on household income distribution and poverty rates, with additional consideration given to asset ownership distribution as a major factor determining a household’s economic status. An assessment was made on the distribution level of assets and incomes through an analysis of the current status and determinants of Korean households’ asset and income distribution, followed by a comparison with other major economies. According to a comparison with other OECD member countries, Korea’s household income gap is relatively large whereas the gap in household assets is considered small. However, the asset and income distribution of Korean households between 2011-2019 exhibited a wider gap in assets than in their incomes. In particular, the recent asset price rise has widened the asset gap. Therefore, the government should pursue policies to reduce the income gap that remains large compared to major countries, while at the same time focusing on the recently increasing gap in household assets among different regions and social classes.
   Policies taking into account characteristics unique to Korea should be developed by conducting a comparative analysis on the effects of income redistribution policies, tax systems and social welfare policies that may help reduce the gap in household economy.