Guryong Village in Gaepo-dong, Gangnam District — known as the last shantytown in Seoul’s Gangnam area — is seen on Aug. 1. Behind the village stand luxury residential complexes in Gangnam, including Tower Palace, one of the most expensive housing areas in the country. Although the site is slated for redevelopment under Seoul’s urban renewal project, the gap in wealth between regions and social classes continues to widen. [YONHAP]

Guryong Village in Gaepo-dong, Gangnam District — known as the last shantytown in Seoul’s Gangnam area — is seen on Aug. 1. Behind the village stand luxury residential complexes in Gangnam, including Tower Palace, one of the most expensive housing areas in the country. Although the site is slated for redevelopment under Seoul’s urban renewal project, the gap in wealth between regions and social classes continues to widen. [YONHAP]

 
Climbing the social ladder through one’s own work has become harder. According to the National Data Office’s 2023 Income Mobility Statistics released on Oct. 27, only 17.3 percent of income earners aged 15 or older moved up by one or more income brackets from the previous year. Among those in the lowest 20 percent, only 29.9 percent escaped that tier. More alarmingly, 27.8 percent have remained in the bottom bracket for seven consecutive years. It is no longer an era where “dragons rise from streams,” but one where people remain trapped in them. The data includes only those with earned or business income, meaning those who lost income entirely likely face even harsher realities. A society with low social mobility risks cementing inequality across generations.
 
Another report released on Oct. 28 by the National Assembly Research Service showed that wealth and asset inequality in Korea has deepened despite a slight improvement in income distribution. Between 2011 and 2023, the Gini coefficient for disposable income improved, but inequality in wealth, education, and health grew. Soaring housing prices in Seoul and other metropolitan areas widened the asset gap, while family wealth increasingly determines educational opportunity. Health disparities also worsened, with lower-income, rural, and single-person households reporting poorer conditions. The study urged the government to pursue inequality reduction as a central policy goal across housing, taxation, and welfare. Given that youth despair stems largely from housing-price polarization, stabilizing the property market must be a top priority.
 
 
The government must also pay closer attention to young people entering the work force. Data show that the escape rate from the lowest-income tier among young workers is declining. Yet the Lee Jae Myung administration’s labor policies focus mainly on protecting those already employed rather than creating new jobs.
 
Plans to extend the mandatory retirement age are especially troubling. Only 21.8 percent of workplaces operate under a fixed retirement system, meaning the change would primarily benefit unionized workers at large companies and in the public sector. It would widen disparities with nonunionized and temporary workers, as well as small- and medium-sized firms. Reducing inequality must begin by narrowing these structural divisions in the labor market.
 
For younger generations to stand on a level playing field, the government must tackle complex issues across housing, taxation, and employment. Rationalizing the tax system, ensuring fiscal sustainability, and prioritizing job creation over protection are essential. When generational conflict is unavoidable, policies must first serve the interests of the young — a responsibility that the older generation owes to the future.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.