What Factors Contributed to a 5% Increase in Household Net Assets in South Korea for 2025?
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Synopsis
In 2025, South Korea's households experienced a 5% increase in average net assets, primarily driven by rising home prices and financial growth. However, the data also reveals a troubling trend of deepening inequality among families, raising concerns about economic disparity across the nation.
Key Takeaways
- Household net assets increased by 5% in 2025.
- Inequality is deepening among households.
- The average net worth is 471.44 million won.
- Debt-to-asset ratio is at 16.8%.
- Average income rose by 3.4% to 74.27 million won.
Seoul, Dec 4 (NationPress) The average net assets per household in South Korea grew by 5 percent compared to the previous year in 2025, largely due to escalating home prices and an increase in financial assets. However, the data from the central bank highlighted a continuing trend of increasing inequality among households, reported on Thursday by the Bank of Korea (BOK).
As of the end of March, the average net assets per household reached 471.44 million won (approximately US$320,441), a rise from 448.94 million won the previous year, according to Yonhap news agency.
Breaking it down, households had total assets averaging 566.78 million won, marking a 4.9 percent increase from the past year. This was fueled by a 5.8 percent rise in real, non-financial assets, which totaled 429.88 million won, while financial assets saw a 2.3 percent increase, reaching 136.90 million won.
On the liabilities side, household debts rose by 4.4 percent to 95.34 million won by the end of March, with rental deposits increasing by 10 percent to 27.39 million won, and financial debt rising by 2.4 percent to 67.95 million won.
The report revealed that 57 percent of households possessed net assets of less than 300 million won, while 11.8 percent had net assets of 1 billion won or more. The debt-to-asset ratio was recorded at 16.8 percent, a slight decrease from the previous year, while the ratio of financial debt to savings also fell by 0.1 percentage point to 68.2 percent.
The average household income in 2024 reached 74.27 million won, reflecting a 3.4 percent increase year-on-year, with disposable income amounting to 60.32 million won.
Despite these gains, inequality is becoming more pronounced. The average assets of households in the top 20 percent stood at 1.33 billion won, approximately 8.4 times greater than those of households in the bottom quintile, which averaged 159.13 million won. This disparity has widened from a 7.3 times difference recorded a year ago.
The net-asset Gini coefficient, indicating the level of inequality, was reported at 0.625, the highest since the BOK began its records in 2012. Furthermore, the income quintile ratio reached 5.78 times, reflecting an increase of 0.06 point from the previous year.
Additionally, the relative poverty rate has seen an uptick of 0.4 percentage point year-on-year.
Point of View
It is crucial to recognize the implications of the Bank of Korea's report on household wealth in South Korea. While the 5% increase in net assets signals economic growth, the widening inequality presents challenges that policymakers must address to ensure equitable prosperity.
NationPress
04/12/2025
Frequently Asked Questions
What is the average net asset per household in South Korea for 2025?
The average net asset per household in South Korea for 2025 is 471.44 million won (approximately $320,441).
How much did household liabilities increase?
Household liabilities increased by 4.4 percent to 95.34 million won as of the end of March 2025.
What percentage of households have net assets below 300 million won?
57 percent of households have net assets of less than 300 million won.
How does the income quintile ratio reflect inequality?
The income quintile ratio increased to 5.78 times, highlighting a growing disparity between the top and bottom income brackets.
What does the Gini coefficient indicate?
The net-asset Gini coefficient of 0.625 indicates a high level of inequality in household net assets in South Korea.
