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3 in 10 stuck in bottom income bracket as mobility falls

Published: 27 Oct. 2025, 18:56 Updated: 27 Oct. 2025, 19:25

Illustration of worker climbing up the income ladder [GETTY IMAGES BANK]

Three out of 10 Koreans have remained in the country’s lowest income bracket for seven consecutive years, government data showed Monday, underscoring the persistent difficulties faced by low-wage earners whose salaries and business income have seen little growth.

According to the Ministry of Data and Statistics on Monday, the share of people whose income level either rose or fell compared to the previous year — a measure of income mobility — stood at 34.1 percent in 2023, the lowest level since data became available in 2017. The figure has declined for three straight years, dropping from 35.8 percent in 2020.

Income quintiles divide the population into five equal groups of 20 percent each based on income levels. A decline in income mobility means that fewer people have moved to a higher or lower income group compared to the previous year.

The decrease in income mobility reflects broader demographic and economic trends. Korea’s youth population — aged 15 to 39 — who are typically more likely to move up the income ladder, is shrinking, while the share of elderly people aged 65 or older, whose income tends to stay flat or decline, is growing. The country’s slowing economy, with growth falling from 2.7 percent in 2022 to 1.6 percent in 2023, has also weighed on income gains.

In 2023, 17.3 percent of people saw their income move up to a higher quintile, slightly outpacing the 16.8 percent who moved down. But both figures were the lowest on record, indicating limited mobility overall.

Only 29.9 percent of those in the lowest 20 percent income group managed to move up in 2023, down one percentage point from the previous year. That means roughly three out of 10 low-income earners were able to escape the bottom tier. In contrast, 85.9 percent of those in the top 20 percent maintained their high-income status, only a slight decrease from a year earlier.

Job seekers read notices for new position openings at a job fair held at the Dongdaemun Design Plaza in Seoul on Aug. 20. [WOO SANG-JO]

Long-term data show that 27.8 percent of those in the bottom income quintile in 2017 remained there through 2023, while 59.3 percent of those in the top quintile maintained their status over the same period.

“Income mobility tends to be low at both extremes, since those in the top and bottom brackets move in only one direction,” said Choi Ba-ul, head of economic and social statistics at the Ministry of Data and Statistics. “Still, there is a need for targeted policy measures to help those who remain stuck in the lowest income group over long periods.”

Even among young people — who typically experience higher income mobility — many found it difficult to escape low-income status. Among those who were in the lowest quintile in 2022, six out of 10 remained there a year later. The share of young earners who moved up one or more brackets dropped to 38.4 percent in 2023, down 1.7 percentage points from the previous year. Overall, however, upward mobility, at 23.0 percent, still outpaced downward movement, at 17.4 percent, in this age group.

The income mobility statistics, first released last year, were compiled by linking population and housing census registration data from the Data Ministry with income data from the National Tax Service. Unlike the Household Finance and Welfare Survey, which measures income distribution at a single point in time, this dataset tracks the same sample of about 11 million individuals over a seven-year period, allowing researchers to analyze social mobility at the individual level.

Because it is based solely on earned and business income, excluding pension and rental income, the data serves as a key indicator of how much opportunity individuals have to move up the economic ladder.

Choi said that while there are no international standards for income mobility, Korea’s current rate in the 30 percent range is within a reasonable level.

“If the mobility rate were below 10 percent, that would indicate a need for policy intervention,” Choi said. “Conversely, if it were as high as 40 or 50 percent, that could suggest excessive layoffs or economic instability.”

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.
BY KIM KYUNG-HEE [[email protected]]