The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Guide to Chuseok celebrations across Korea

  • 3

    Court rejects arrest warrant for opposition leader Lee over corruption charges

  • 5

    Royal palaces in Seoul offer free access during Chuseok holiday

  • 7

    N. Korea decides to expel US soldier Travis King over border crossing

  • 9

    Hyundai E&C to build upmarket apartment complex in Seoul's Gwanak District

  • 11

    Korea on track to prove esports prowess at Asian Games

  • 13

    Lotte focuses on health care, mobility to spur growth

  • 15

    Teen swimmer Lee Eun-ji shrugs off freak injury to end quarter-century drought in pool

  • 17

    Travis King in US custody after expulsion by N. Korea: Washington officials

  • 19

    Samsung SDI to spend $1.97 bil. on 2nd joint US battery plant with Stellantis

  • 2

    Chuseok exodus begins ahead of extended 6-day holiday

  • 4

    INTERVIEWWith '30 Days,' Kang Ha-neul finds new level of comfort in acting

  • 6

    Korea sees record-low births in July

  • 8

    Political battle intensifies after court rejects Lee's arrest warrant

  • 10

    DMZ Open Int'l Music Festival to be held in Goyang in November

  • 12

    Two Koreas trade barbs over nuclear war

  • 14

    Defense ministry launches project to find families of unidentified fallen Korean War soldiers

  • 16

    DPK hails court's rejection of Lee's arrest, demands Yoon's apology

  • 18

    Top prosecutor vows to seek due punishment for Lee through further probe

  • 20

    Finance minister expects Korea's exports to rebound as early as October

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
Fri, September 29, 2023 | 08:58
Editorial
Life getting harder
Posted : 2022-11-22 17:15
Updated : 2022-12-04 17:40
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
The poor become poorer amid economic woes

Households at the bottom 20 percent of the income bracket saw their average real income fall 6.5 percent in the third quarter of this year from a year earlier, according to Statistics Korea on Monday. Meanwhile, the richest 20 percent's inflation-adjusted average income declined only 2 percent. This indicates that deteriorating economic conditions such as runaway inflation and higher interest rates have had a far more severe effect on the poor.

Simply put, the poor have become poorer due to deeply entrenched socioeconomic inequality. This trend will inevitably lead to a vicious cycle of a fall in consumption, an economic slump, widening of the income gap and deepening inequality. It also dampens people's hopes of an improvement in their standard of living after the pandemic.

The data also show the top 20 percent made 5.75 times more income than the bottom 20 percent during the July-September period. This is higher than the 5.34 times recorded a year before. Over the past three years, the COVID-19 pandemic has widened income disparity, forcing the poor to bear the brunt of the unprecedented global public health crisis. On the other hand, the rich have become richer on the back of asset price bubbles which were formed due to monetary easing and fiscal expansion.

Now, the situation is becoming worse. Soaring prices and rising interest rates are causing the poor and vulnerable to suffer higher living costs and growing interest payments. According to the statistics office, individual borrowers' interest payments surged 19.9 percent in the third quarter of this year from the year before as the average mortgage rates more than doubled to as high as 7 percent.

More seriously, the middle class, the backbone of democracy, has been shrinking at an alarming rate. According to the Hyundai Research Institute, the ratio of the population in the middle class dropped to 44 percent in 2020 from 47.1 percent in 2019. The figure was presumed to decline further in 2021 and this year, given the widening income and wealth gaps. The crumbling of the middle class could pose a grave threat to our society because it will hurt social cohesion and create conflicts between the haves and have-nots.

President Yoon Suk-yeol should not forget his campaign promise to narrow economic inequality and address social polarization. But his administration has yet to work out detailed measures to keep the promise. Instead, it has been seeking to lower corporate tax rates and ease the tax burden for owners of multiple homes. It has also proposed to cut inheritance and gift tax rates. Thus the government cannot avoid criticism for pushing for tax cuts for the rich.

Yoon and his policymakers need to map out comprehensive measures to help the poor earn more income. They should double down on creating more jobs, strengthening the social safety net and offering more welfare programs for the poor and underprivileged. In addition, they should strive to help improve the people's livelihoods by taming inflation and speeding up the economic recovery.





 
miguel
wooribank
LG
Top 10 Stories
1Guide to Chuseok celebrations across KoreaGuide to Chuseok celebrations across Korea
2Chuseok exodus begins ahead of extended 6-day holiday Chuseok exodus begins ahead of extended 6-day holiday
3Korea sees record-low births in July Korea sees record-low births in July
4Political battle intensifies after court rejects Lee's arrest warrant Political battle intensifies after court rejects Lee's arrest warrant
5Hyundai E&C to build upmarket apartment complex in Seoul's Gwanak District Hyundai E&C to build upmarket apartment complex in Seoul's Gwanak District
6DMZ Open Int'l Music Festival to be held in Goyang in November DMZ Open Int'l Music Festival to be held in Goyang in November
7Korea on track to prove esports prowess at Asian Games Korea on track to prove esports prowess at Asian Games
8Two Koreas trade barbs over nuclear war Two Koreas trade barbs over nuclear war
9Lotte focuses on health care, mobility to spur growth Lotte focuses on health care, mobility to spur growth
10Defense ministry launches project to find families of unidentified fallen Korean War soldiers Defense ministry launches project to find families of unidentified fallen Korean War soldiers
Top 5 Entertainment News
1[INTERVIEW] With '30 Days,' Kang Ha-neul finds new level of comfort in acting INTERVIEWWith '30 Days,' Kang Ha-neul finds new level of comfort in acting
2Rwandan artists bring diversity to Seoul's art scene Rwandan artists bring diversity to Seoul's art scene
3[INTERVIEW] ONEUS returns as 'mermaid prince' INTERVIEWONEUS returns as 'mermaid prince'
4Kep1er unveils 'Magic Hour' with fresh perspective on love Kep1er unveils 'Magic Hour' with fresh perspective on love
5K-pop group Kingdom recalls album cover resembling Quran K-pop group Kingdom recalls album cover resembling Quran
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group