Why Is the Middle Class in Korea So Hard to Reach?

When you think of the “middle class,” what comes to mind? A stable income, home ownership, a decent work-life balance, and maybe the ability to support your children’s future?
In many countries, this is an achievable, even expected, life path for the average person.

But in South Korea, things are different. Very different.

🇰🇷 The Korean “Middle Class” Isn't What You Think

In South Korea, the perceived standard for being "middle class" is surprisingly high.

According to a survey by a major financial institute:

Net assets of at least ₩940 million (around $720,000 USD)
Monthly spending of ₩4.27 million (~$3,200 USD)
Monthly income of ₩6.86 million (~$5,200 USD)
Ownership of an apartment worth over ₩840 million (~$640,000 USD)

These numbers don’t reflect the average Korean—they reflect the top 10% of earners. Yet many Koreans consider these conditions to be the bare minimum for a stable life.

The Illusion of Average: A Cultural Trap

This phenomenon is called “average inflation” in Korea.

Only 7.7% of salaried workers are employed at major corporations.
Just 8% of college students are admitted to top-tier Seoul universities.
And yet, these groups are often treated as the “standard.”

Korean youth grow up being told that success means graduating from a prestigious university in Seoul, landing a job at a conglomerate (like Samsung or Hyundai), buying a home in the capital region, and eventually passing on that privilege to their children.

Any deviation from this path? It’s considered failure.

The Mental Toll on Korean Youth

Because of this social mindset, young people in Korea experience enormous pressure to “keep up.” But with real wages stagnating, housing prices skyrocketing, and job competition fiercer than ever, this “average life” has become virtually unattainable.

Even worse, those who don’t meet this inflated standard often blame themselves, leading to rising anxiety, burnout, and even one of the highest youth suicide rates in the OECD.

The Real Numbers Tell a Different Story

According to the Korean government:

The official middle class is defined as those earning 75%–150% of the median income.
For a single-person household, that’s just ₩1.67M to ₩4.46M per month (~$1,250–$3,300 USD).
Yet many Koreans believe you need to earn over ₩6.8M/month to be “average.”

So where does this gap come from?

The answer: Extreme income inequality.

For example:

In small and mid-sized companies, even senior employees in their 40s and 50s earn less than a 20-something entry-level worker at a large company.
The top 10% of earners make as much as the bottom 40% combined.

Is There a Way Out?

Solving this requires more than just education reform or financial literacy campaigns.

Experts argue that:

South Korea must address its Seoul-centric development model, as most major companies and opportunities are concentrated in the capital.
Redistributing economic activity to other regions can ease housing competition and lower cost-of-living pressures.
Reducing wage disparities between large corporations and smaller companies is essential.

Otherwise, the gap between perception and reality will continue to fuel a collective sense of failure, especially among the younger generation.

A Global Lesson?

South Korea is often praised for its rapid economic growth, cutting-edge technology, and high education standards. But beneath the surface lies a growing societal dilemma:
When only the top 10% can live what’s considered a “normal life,” what happens to the rest?

Maybe it’s time to redefine what success and stability really mean—not just in Korea, but everywhere.

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