Structural economic changes have created a more challenging labour market, with growth of lower-paying jobs outpacing that of higher-paying jobs. Lacklustre government policy responses to address this issue have stoked public discontent, particularly among lower-income earners. Certain higher-income earners have meanwhile benefited from rising property prices.
A widening income gap will exacerbate South Korea’s above-average suicide and elderly poverty rates.
Attendant worsening of an already high household debt-to-GDP ratio could weaken economic growth prospects.
Rising inequality will intensify political divisions and instability, particularly as senior officials face corruption allegations.
Insufficient income could dampen private consumption.
