Income Polarization Deepens, Personal Bankruptcy Filings Hit Record High

Despite some improvements in economic indicators, the widening income gap has led to the highest number of personal rehabilitation applications on record as of April this year.

The average monthly income of the top income bracket exceeded 12 million won, further widening the gap with other income groups, and some high-earning companies distributed large bonuses. While the top 20% secured 3.445 million won in household disposable income per month, the bottom 20% recorded a deficit of 438,000 won per month, facing increased burdens from essential expenses.

With low-income households pushed to their limits, personal rehabilitation applications reached 55,000 cases by April this year, breaking the previous record. The income gap between the top 20% and bottom 20% in the first quarter widened to 6.6 times, the largest gap in six years.

For the healthy growth of the economy as a whole, policies are needed not only to boost exports but also to ensure that all members of society can benefit from economic growth.