Park Eung-kyu, a factory worker at a medium-sized enterprise in South Korea, struggles to reconcile the nation’s increasing wealth with his own stagnant income. Despite the country’s rising Gross National Income (GNI) per capita, Park’s salary has barely increased in over a decade. His story is shared by many workers across the country who feel financially strained, even as economic indicators show positive growth. South Korea’s 2024 GNI per capita reached $36,624, but surveys show citizens’ happiness and satisfaction with life are on the decline, highlighting a disconnect between economic data and public sentiment.
Financial Distress Amid Rising National Wealth
Despite South Korea’s impressive economic data, many citizens feel increasingly alienated from the country’s growing wealth. Park Eung-kyu, who has worked for over 10 years at his current job, earned only 40 million won ($27,460) in 2024. This income, which has barely increased over the years, is far below the national GNI per capita of $36,624. The GNI per capita represents the average earnings of people and businesses both domestically and internationally, and this number has steadily increased by 2.7% in 2023 and 1.2% in 2024, according to the Bank of Korea (BOK).
Park’s frustration stems from the fact that while the national wealth is growing, his personal financial situation is not improving at the same rate. “I get gloomy about being a possible dropout in this country where the average income keeps rising,” Park shared. “But I have been earning less for years.” His experience reflects a broader sentiment among South Korea’s salaried workers, where GNI growth seems disconnected from everyday financial struggles.
Economic Indicators Don’t Capture Koreans’ Struggles
Korea ranks as one of the top six countries worldwide with a population exceeding 50 million and a GNI per capita higher than $30,000, alongside nations like the United States, Germany, and the United Kingdom. Yet, despite these high economic indicators, South Korea’s ranking in the 2024 World Happiness Report places it 52nd out of 134 countries. This marks a concerning contrast between the country’s financial data and the personal happiness of its citizens.
Experts are beginning to see this disparity as a result of “statistical illusion,” especially due to South Korea’s declining population. The country’s population shrank by more than 450,000 in 2024, marking the fifth consecutive year of decline. According to Inha University economics professor Shin Il-soon, when the population decreases, the GNI per capita is artificially inflated, as it is calculated by dividing the total GNI by the number of people. “The smaller the population, the higher the GNI per capita we are likely to have, even if the total GNI remains relatively unchanged,” he explained.
The Illusion of Prosperity: How GNI Misleads
Hanyang University economics professor Ha Joon-kyung further emphasized that GNI per capita is not an accurate reflection of individual well-being, as it includes corporate productivity alongside personal income. In South Korea, large conglomerates, which employ only a small percentage of the population, contribute significantly to the nation’s wealth. As Ha pointed out, “It is a small pool of big businesses that largely contribute to a country’s wealth, which therefore is unrelated to the general financial well-being of the people.”
This inequality is starkly visible when comparing the wages of employees in large corporations versus those in small and medium-sized enterprises (SMEs). Data from the Korea Enterprises Federation showed that employees at large companies earned an average of $87,130 annually in 2022, significantly higher than the $59,100 earned by their counterparts in SMEs. In contrast, workers in smaller companies, like Park Eung-kyu, earn considerably less, which fuels their dissatisfaction despite the national economic growth.
Wage Inequality and Its Impact on Korean Society
Professor Shin Se-don of Sookmyung Women’s University noted that the growing wealth gap between conglomerates and SMEs is a major source of dissatisfaction. According to Shin, this disparity is one of the reasons why many wage workers feel discouraged, especially when they compare their earnings to those at large corporations. South Korea’s large companies are among the highest wage payers globally, ranking fifth among 22 countries surveyed in 2022. However, the rising salaries at these corporations have not led to greater happiness, as highly paid workers are also experiencing increasing emotional distress due to the fierce competition and high expectations that come with their positions.
South Korea’s Declining Life Satisfaction
Statistics Korea, in its 2023 survey, found that Koreans’ satisfaction with life had decreased for the first time, with the nation ranking 33rd out of 38 OECD member countries. The average score on a 10-point scale was 6.4, below the OECD average of 6.69. This decline in life satisfaction, despite growing economic wealth, underscores a growing disconnect between financial prosperity and the well-being of the average citizen.
Many workers are finding it increasingly difficult to align their personal financial realities with the national economic success stories they hear. As the country’s demographic crisis deepens, with a shrinking workforce and an aging population, the gap between economic data and the lived experience of Koreans is likely to widen further.
South Korea’s economic data may suggest a nation in prosperity, but the reality for many citizens, particularly salaried workers, is one of financial distress and dissatisfaction. With increasing wealth concentrated in large corporations, the average worker is struggling to keep pace. As the nation faces a demographic crisis, the economic “illusion” of prosperity may only grow more pronounced. While GNI and other economic indicators continue to rise, they fail to capture the broader picture of financial inequality and declining life satisfaction, leaving many Koreans, like Park Eung-kyu, feeling left behind.
For more updates on South Korea’s economic trends, visit inews.
