Korea's middle class rises to a record high of 60%. But many don't feel that way.

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Korea's middle class rises to a record high of 60%. But many don't feel that way.

Published: 28 May. 2025, 10:47 Updated: 02 Jun. 2025, 19:03

Audio report: written by reporters, read by AI

Citizens crowd a shopping district in Myeong-dong, Jung District, central Seoul on May 27. [NEWS1]

The proportion of Korea’s middle class has risen to a record high of around 60 percent, but half of them feel like they belong to the lower class, according to latest data.

The population ratio classified as middle class by OECD standards — those earning 75 to 200 percent of the median disposable income — increased from 54.9 percent in 2013 to 59.3 percent in 2023, a 4.4 percentage point rise, according to Statistics Korea on Tuesday.

Using a more commonly cited domestic standard, measuring those with 50 to 150 percent of the median income, the middle class ratio also rose from 57.4 percent to 63.0 percent over the same period, the highest level on record.

The income share held by the middle 60 percent — a measure of the middle class’s economic influence — also rose from 51.8 percent in 2013 to 53.9 percent in 2023.

These figures suggest that both the size and economic weight of Korea’s middle class have increased over the past decade, roughly on par or slightly better than OECD averages.

However, many who are statistically middle class do not perceive themselves as such.

Nearly 45.6 percent of respondents classified as middle class under OECD guidelines considered themselves lower class — up 5.1 percentage points from two years earlier, according to NH Investment & Securities' 2022 “Middle Class Report.”

Bank windows for mortgage loans are seen at a bank in downtown Seoul on Nov. 19, 2024. [NEWS1]

The percentage increased by 5.1 percentage points from the survey conducted two years ago, when the number stood at 40.5 percent. The proportion of those who consider themselves middle class decreased by 5.7 percentage points from 59.4 percent to 53.7 percent.

A similar trend appears in Statistics Korea’s social surveys. In 2013, 77.8 percent of households earning 4 to 5 million won ($2,920 to $3,650) a month identified themselves as middle class. By 2023, that figure had dropped to 69.7 percent. For those earning 5 to 6 million won, the percentage dropped from 83.3 percent to 73.3 percent.

Dissatisfaction with income also increased: among those earning 4 to 5 million won, 51.1 percent felt their income was insufficient, up from 49.3 percent in 2013, and the figure rose from 36.5 percent to 44.3 percent in the 5 to 6 million won bracket during the same period.

The core issue lies in differing expectations. Middle-class respondents said a typical middle-class family of four members should earn 6.86 million won monthly, spend 4.27 million won and hold net assets of 940 million won, according to the NH report.

Shoppers look around produce at a large shopping mart in Seoul on May 23. [YONHAP]

“Monthly consumption of 4.27 million won is at the level of the top 9.4 percent,” said a NH Investment & Securities representative. “The middle class feels that they are in the lower class because of the gap between the ideal and reality.”

While official classification relies on income, people’s notion of middle-class life encompasses asset ownership and spending, which widens the disconnect.

A 40-something corporate employee surnamed Cho earning over 7 million won a month post-tax said most of his income goes toward loans, children’s education and insurance — leaving only a few hundred thousand won in disposable income.

“With rising prices, we barely eat out,” Cho said. "It feels like everyone else is buying homes and traveling abroad while we can’t.”

Widening property wealth disparities have intensified this relative sense of deprivation. Many middle-class households face mounting principal and interest payments on mortgages.

Travelers going overseas on holiday are seen at Terminal 1 of Incheon International Airport on May 2. [NEWS1]

“Middle class people would think they have some level of leeway, but living so frugally is also a factor that lowers their perception of their class,” said Lee Yoon-soo, a professor of economics at Sogang University.

The decline in perceived middle-class status signals reduced social mobility. In 2013, 38.9 percent of self-identified middle-class respondents believed their generation could move up the social ladder. By 2023, that dropped to 31.5 percent, showing that seven out of 10 people thought that there was no possibility of moving to the upper class. Optimism for the next generation also fell sharply, from 46.5 percent to 33.3 percent.

Experts argue that policy should prioritize upward mobility over expanding the middle class.

A 2023 KDI report classified Korea’s middle class into three groups: those in the upper-income bracket who still see themselves as middle class, those whose income and self-perception align — the core middle class — and vulnerable middle class members who meet income thresholds but identify as lower class.

Children out on a field trip are seen at Gwanghwamun Square in Jongno District, central Seoul on May 13. [NEWS1]

KDI emphasized helping this vulnerable group — excluded from welfare benefits yet exposed to housing and job instability — since they risk slipping back into the lower class.

To boost social mobility, experts highlight the need for economic growth and quality job creation.

“Expanding the middle class through government transfers has its limits.” said Lee Young-wook, a senior researcher at KDI. “The burden of private education must be reduced and education should be reestablished as a true ladder of mobility.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY JANG WON-SEOK [[email protected]]