Transcription
In the case of Korea, asset inequality is generally deepening significantly, and I believe this is the most urgent issue that needs to be improved.
Even if you earn money, there's no guarantee you'll earn the same amount, and even if you study and have the ability, the appearance of earning the same amount of money is >> We ran too fast. We should have run while looking back a bit, but I think the problem is that we only looked forward and ran. I believe that one of the truly serious problems in this society is the division between normalcy and the separation of success and failure. [Music] >> Children from wealthy families are achieving much greater educational outcomes, and this should not happen. [Music] I don't think it's a good country to get married or raise children. 73 years old has lived in this neighborhood for almost 3 decades. His current rent is over and shares [Music] with 89 lady not related to >> There is no one who earns only 200,000 won a month. [Music] >> My eldest aunt, my eldest uncle. It's been about 15 years. If anyone saw us, they would think we were siblings because we lived together when we were young. [Music] >> [Music] >> I couldn't do it, I couldn't do it, so I only did volunteer work, and then I learned carpentry in Seoul, and became a carpenter. [Music] My arm broke, and I became disabled like this. [Music] hands of in [Music] winter heating. The heating bill can be as high as 70,000 won a month, and the city gas bill can also be several thousand won when it's high. I don't use an electric blanket, only Grandma. >> Grandma, this blanket, this boiler, it's heated by water vapor. The blanket's vinyl is cheap. I put it on myself so it wouldn't get wet. I made holes in it. It's a lot, isn't it? The wind is tremendous. down the [Music] same road. Houses are valued at millions of US dollars. A stark contrast is contributing to inequality in South Korea. Across Asia, similar pressures are growing. A new report published by the Asian Development Bank in 2025 found that many Asian economies are [Music] grappling with the widening gaps in income, wealth, and opportunity.
There are various indicators that actually show inequality. The most common indicator is the Gini coefficient. Economists line everyone up from the poorest to the richest. A Gini coefficient of zero means riches are perfectly distributed. A Gini of one means all the income goes to one person, perfect inequality. South Korea's income Gini coefficient hovers between 0.31 [Music] and 0.33. National distribution, however, it comes with a different story. Wealth Gini 2026. The wealth Gini coefficient is continuously expanding. Real estate, in particular, is experiencing severe inequality. In Korea, 75% of household assets are concentrated in real estate. Looking at the actual data, the average real estate holdings of the top 20% in net worth are around 1.43 billion won, while the bottom 20% hold only 10 million won. This means there is a significant difference of over 130 times. Therefore, in the case of Korea, asset inequality is generally deepening significantly, and I believe this is the most urgent issue that needs to be improved. [Music] Large corporations, called chaebols, [Music] have grown significantly in Korea. Korea has experienced high growth. >> [Music] [Music] >> However, for such growth to occur, wealth must be generated, and that wealth, in turn, creates new jobs, leading to economic growth effects that spread to various service industries. Rice fields became industrial zones, villages [Music] became cities, and between 1960 and 1990, the gap widened. [Music] >> In fact, when new growth engines emerge, [Music] the gap between those sectors and the stable sectors that are not growing will widen. For example, if semiconductors grow, or if the AI field grows as it is now, the gap with sectors that are not growing will widen. This has always happened during the growth process. I see it as a matter of speed. We ran too fast. We should have run while looking back a bit, but I think the problem is that we only looked forward and ran. Therefore, many things that were missed while running at that time are now surfacing as major problems, and I believe the density of those problems is also high. >> Another thing is real estate, as everyone knows. [Music] Real estate is used as a means of making money. [Music] And this is luck. It's luck whether you make a lot of money or not, and it was just luck, and on the other hand, it was just the trend of the times. Recently, the number of elderly people who are not adequately prepared for retirement has increased significantly. [Music] >> Even if they don't seem to have major difficulties, many elderly people skip meals due to the burden of living expenses and medical expenses. Therefore, the high elderly poverty rate is likely due to the high poverty rate among those born in the 1930s and 1940s, before rapid economic growth. As those born in the 1960s and 1970s enter old age, the elderly poverty rate is expected to gradually decrease. COVID-19's impact in 2025 saw 0.2% growth between 0.8th. >> [Music] >> There is a living room and a kitchen, and this is the master bedroom. Here is the bathroom, storage, and then the balcony. The balcony has 33 cats. [Music] R A 4600. [Music] >> Nowadays, it's hard to find a studio apartment even for 500,000 won. Yes, I moved this year. My house has a lot of plants, so I've installed plant lights here and there. And then, while reading a book, a glass of whiskey. [Laughter] It's a scene that shows a luxurious life. >> [Laughter] [Music] >> NG >> First of all, this area has also been designated as a redevelopment zone, so I will have to move in four years. So I am really anxious about how I will live in the future. The proportion of households with real estate among the younger generation is significantly decreasing. One reason for this is the very rapid increase in real estate prices. [Music] December 2025. This was an increase of more than 7% from the month before. Annually. [Music] As real estate prices increase faster than income, it becomes very difficult for the younger generation to acquire real estate through income. >> Personally, my dream is to have my own home in a place where I can be with stable housing, cute cats, and loved ones whom I can meet often. [Music] This home is truly important, but because I don't have a home, and finding a home itself seems impossible. [Music] [Music] [Music] >> Therefore, the asset gap between the older generation who already own real estate and the younger generation is rapidly widening. The asset structure, which is ultimately centered on real estate, has a serious impact on intergenerational inequality or inequality within generations. In such a real estate-centric asset society like Korea, the socio-economic status of parents is passed down to their children through inheritance and gifts, leading to a slowdown in intergenerational mobility and thus deepening inequality. This mechanism can lead to continuous deepening of inequality. Therefore, I believe that the sense of security between people born into families that own homes and those born into families that do not is enormously different. My family doesn't own a home. [Music] Just the fact that we don't own property creates an immense and overwhelming sense of anxiety. [Music] So, I think many people will empathize. >> [Music] >> South [Music] Korea is becoming. Generally, inequality is not a problem of one dimension, but a very multidimensional problem. In Korean society, the so-called dual labor market structure is a very big problem. About the top 10% have good, stable, full-time jobs in large corporations, while the remaining 90% have jobs in small and medium-sized enterprises or non-regular positions. After the Asian financial crisis in 1997, companies turned to flexible hiring, and temporary work spread rapidly. What began as a short-term response for recovery became permanent. Labor markets in the country where the workforce is transient. [Music] Therefore, there are significant differences in wages, job security, and welfare systems between these two groups, which is a very serious problem in Korea. In one 2025 government study, the annual average income of the top 10% of households stood at about 210 million won in 2024. The bottom 10% earned just over 10 million won a year. The income disparity between the top and bottom 10% reached 200.32. I heard a story once about the three major black holes of the Korean labor market. For example, if you have a license, you can be a delivery rider. If you are good at physical labor or have nothing but your body, you are drawn to construction sites in Pyeongtaek and other places. If you have neither, you go to a Coupang logistics center. People say that. But it seems to be true. Especially for delivery riders, there are many side jobs, so many people work that way. You see it a lot these days. So, in a humorous way, it's even nicknamed "national side job." >> My name is Jeon Seong-bae, and I've been making a living as a delivery rider for 7 years. During COVID, it spread rapidly on the platform. Then I realized for the first time that I could deliver without being affiliated with any company, just by turning the app on and off. At that time, I thought it would be quite free. >> This will be a bit larger than a general delivery rider's. Because I also do express services, I deliver to areas outside of Seoul, to the outskirts of Seoul. However, many riders have also entered the market. As many riders have entered, the market size has grown and company revenue has increased, but rider income has decreased. >> Also, in our case, there are necessary expenses. They deduct about 30% of the expenses and pay us 50% less. So, to earn at least the minimum income, you have to earn more than 3.3 million to 4 million won a month. In Korea, generally, compared to other OECD member countries or other countries, the proportion of people with higher education than university is very high. In that sense, there are many young people with a university degree or higher, but in a way, there is a severe shortage of good jobs for them, meaning jobs in large corporations with regular employment. >> It is said that in addition to actual income, when looking at other economic aspects such as consumption and assets, this K-shaped, so-called [Music] polarization is intensifying. It's a pattern economists described as a K-shaped recovery. Different income groups moving in opposite directions at different speeds. One line rises, driven by higher income households whose wealth continues to grow. According to a recent study by the Korea Chamber of Commerce and Industry, consumption increased for the upper and lower income groups, while it decreased for the middle class. This phenomenon can be explained by the fact that high-income groups have fully recovered from the consumption shock caused by COVID-19, and their assets have continued to appreciate, allowing them to consume sufficiently due to the wealth effect. Low-income groups were also able to consume sufficiently through government fiscal policies. On the other hand, the middle class experienced a slower recovery from the consumption shock caused by COVID-19, and as household debt increased, the burden of debt repayment increased, leading to a decrease in consumption. 2.7% 3.6%. If I work hard, I don't see a path to improvement, so no one works hard. It seems to be leading to a sense of resignation. Many people respond by saying, "What are you doing?" But compared to the past, this is truly, if I may say so, a defeatist mindset. Of course, it's a small and medium-sized enterprise, not a large company, so if the government cuts R&D expenses, the opportunities are limited. So, in the end, the entire research company is just dividing a pie. Esters [Music] >> If I worked for a small and medium-sized enterprise for 10 years and then upgraded to a large or mid-sized company, that's not possible. That's not happening at all. [Laughter] Even with just experience in small and medium-sized enterprises, large companies cut you off these days. You can't change jobs. Samsung Electronics' share of new hires from SKY universities was over 30% in 2022 and 24% in 2024. SK's share also fell. In this situation, young people have two choices. The first is to not participate in the labor market at all, which leads to an increase in the number of people who are not working or studying. This phenomenon, where people give up on job searching or continue to prepare for it, can occur. South Korea. The number of people who are neither working nor studying has nearly doubled over the past decade, even as the population shrinks. [Music] Therefore, young people who are currently working in non-regular or low-quality jobs are at risk of experiencing career breaks or being stuck with low wages in the future. [Music] South Korea. Equal opportunity. [Music] Korea has achieved compressed growth, achieving in 30 years what took 300 years in Korean history. I believe this is the power of education. Decades after the Korean War, education was a top priority, expanding universal schooling, standardizing curricula, and tightly linking education policy to industrial and economic planning. From the 1960s, schools and universities rapidly became the engine of economic growth. In international student assessments, South Korean students ranked well above the OECD average in mathematics, reading, and science. [Music] In 2022, more than 70% of South Koreans aged 25 to 34 had completed tertiary education, the highest rate across the OECD, compared with an average. >> [Music] >> In Korea, education has been a major driving force for rapid economic growth and high social mobility. However, recently, inequality has been perpetuated and passed down through education. Children from wealthy families are achieving much greater educational outcomes, and this should not happen. This is most starkly revealed in the college admissions process. SKY is made up of Seoul National University, Korea University, and Yonsei University. [Music] Based on career development institute national scholarship application data, [Music] about 67% of national university students come from wealthy families. This phenomenon is not limited to Seoul National University but is also found in other top universities in Korea. Currently, the college admissions system at the top universities in Korea is primarily determined by the scores on the college entrance exam. [Music] This exam score, since all students take the same test, can be considered the fairest. However, nowadays, the influence of private education is increasing, and higher exam scores can be achieved through private education. This ultimately influences children from wealthy parents to enter better universities. They wake up at 7 AM, and as soon as school ends, they go to cram school. This is not something they do every day. [Music] >> I check the time and [Music] have dinner at night. On this day, they went to cram school until 9 PM. Afternoons are [Music] private academies. [Music] >> Children cannot manage their own time yet. So, parents almost schedule everything for them. "What time is it now? What homework is left? How did you do it?" They keep checking. In the southern part of South Korea, public elementary schools have midterm and final exams, and most students attend private academies. >> They say it creates a sense of inferiority related to competition in children, but the reality is not like that. In schools, [Music] there is no system to check that in elementary schools. I think what schools do is really lacking. >> To feel it as an option, you need considerable mental fortitude. In reality, if you don't send your child to a cram school and only rely on what's done at school, there's no objective indicator to assess your child's intellectual level. Suddenly, if you falter in your internal grades, you can't get in, which is unfortunate. School grades around. In a way, unless you seriously consider it, most people send their children to cram school. In fact, the effect of parental economic power on children's university admission is very significant. Even excluding genetic factors, parental economic power plays a very important role in children's admission to top universities. [Music] Graduates from SKY universities are viewed as more desirable by employers. Research also shows that by the age of 40, those from the top universities earn up to 50% more than those from the lowest-ranked schools, according to a 2022 survey. 500 out of 1000 graduates from one of the SKY schools. >> To some extent, the preference for SKY or top universities is valid. [Music] Because it is a qualification that guarantees a certain level of diligence, such as being very good at studying or having good memory, it is necessary for organizations to recognize it in the recruitment process. Therefore, I believe that the companies' choices are correct. [Music] In reality, those who have given up on studying will experience immeasurable defeat in their lives, not just in university but in society. Even if they go to a small university in a local area, the sense of defeat they experience throughout their lives is indescribable. >> The goal should not be university itself, but rather to receive higher education, go out into society, and use that knowledge, experience, and social skills to create a healthy society without problems with other members. This is the most important thing, considering the opportunity cost for children, and even if they don't do well, they can do better next time. >> They can aim for the next opportunity. The current education system takes away countless choices and opportunities. Under the premise that adults evaluate them, [Music] [Music] But this is a simple problem, to be honest. We just need to abolish the CSAT. We need to break down the hierarchical entrance exam [Music] testing system. However, the backlash from that would be immense. Therefore, no policymaker, politician, or administrator will be able to touch it. True education is intertwined from A to Z. It's a problem with college admissions, university education, and then employment after university. [Music] These are all interconnected problems, so it's not a simple issue. [Music] Generations under pressure. [Music] [Applause] In 2025, a member of the Democratic Party was elected president. The gap between the rich and the poor is also said to be widening. [Music] How to resolve this gap is one aspect, and it seems that the approach is to resolve the gap through laws, systems, policies, and budget projects. [Music] The minimum wage is literally the minimum. Instead, there's a suggestion that we should institutionalize an appropriate wage, not just the minimum wage. I think this is a point where the working conditions of non-regular workers in the private sector, including the public sector, need to be improved. >> We are currently in an era of complex transitions. Due to industrial structure transformation, the digital revolution, and carbon neutrality due to climate change, we are facing an era of complex transitions not only in Korean society but globally. In this era, labor instability can increase. We need to prepare for a transition period that resolves the increase in labor instability and guarantees employment stability, which we call a "just transition." Generally, inequality is not a problem of one dimension but a very multidimensional problem. This naturally includes economic aspects such as income, consumption, and assets. >> In Korea, the concentration in the Seoul metropolitan area is a very big problem. 50% of the population and 80% of the economic power are concentrated in the Seoul metropolitan area. Korea has a structure that is rarely seen among OECD countries. Such companies have their headquarters, R&D centers, and important government ministries, and finance and culture are excessively concentrated in the metropolis of Seoul. Talent is universal, but all talent tends to move to the place where power is concentrated in their country and nation. Therefore, the current concentration in the Seoul metropolitan area is something that was missed during Korea's rapid growth, which has been advancing at a high speed. I see the problem growing. It is currently manifesting in reality. 229700 [Music] [Music] >> It is often said that Korean society is a single-pole system where Seoul, Gyeonggi, and Incheon are concentrated in the Seoul metropolitan area. Therefore, are the provinces being neglected? There have been long-standing issues raised about being neglected in terms of laws, systems, policies, and budgets. The Lee Jae-myung administration places great importance on the overarching goal of balanced national development, and ultimately, only the state can address this issue. Since the central government has the decision-making power to implement important tasks and deregulation, it is important to provide incentives to local governments through cooperation between the central and local governments to prevent the outflow of local human resources. One solution is to spread out the top universities. President Lee has proposed a plan to decentralize higher education, known as the "10 Seoul National University Scheme." It would raise nine regional universities to the level of Seoul National University, creating 10 top universities in the country. Personally, I see this as regional equalization. We need to equalize regional knowledge-based ecosystems, not just equalize them. If there are universities, there will be regional industries. And there will be policy institutions to support them. These three groups must be equal. >> Yes. Ideally, if there were 10 universities at the level of Seoul National University in the provinces, it would create incentives for many young people to stay in the provinces without having to move to the Seoul metropolitan area. >> We will actively and aggressively pursue job creation projects tailored to regional industries and discover specialized industries in each region. We will support them in a way that allows them to compete with the Seoul metropolitan area. We also plan to promote projects to create job models as megacities by dividing Korea into five super-regional areas, not a single-pole system. >> Financial institutions, venture capitalists, and angel investors will naturally come. Then, each region has its own characteristics. Based on one-dimensional resources. Therefore, I theoretically believe that supply and demand will be very balanced. [Music] >> Because, after all, [Music] they say that the provinces are disappearing. But I heard that in Japan, to prevent the disappearance of rural areas, they have welfare policies where they sell surplus housing to young people at very low prices. If such welfare policies are introduced quickly, it would be very helpful. If there is work and a profession that can be done in the provinces, then it is certainly possible. Finally, [Music] to there to be around growth and [Music] >> Our society, Korea, has grown into a developed country to some extent, so all sectors have a tightly structured growth. Therefore, it is difficult to achieve easy growth. Another point is that some sectors are characterized by closed regulations, making it difficult to create new growth and new success stories in those areas. The government's role is to improve the institutional conditions for economic growth, and inequality can be resolved naturally. [Music] First of all, life must be regular. If you are going to get married. But my current situation doesn't seem to be like that. The next few years are too dark to say, but I still don't know. Because I think I'm living by only thinking about the present rather than the future. I'm just struggling to live day by day. It's a struggle to just hold on. [Music]