A study by the Korea Institute for Health and Social Affairs has found that while income inequality in South Korea has been gradually improving, many citizens do not perceive this change due to the persistent burden of high living costs and significant asset inequality. The research indicates that individual perceptions of inequality are influenced not just by income levels but also by the complexities of living expenses and asset holdings, which skew people’s perspectives towards feeling more unequal.

Over the past seven years, public transfer incomes such as pension and unemployment benefits have increased, which has led to a decrease in the Gini coefficient, indicating improved income distribution. However, subjective inequality perceptions have risen sharply from 5.53 to 6.21 on a 10-point scale, revealing a disconnect between statistical measures of inequality and individual experiences. The study highlights that lower-income groups feel an intensified sense of economic disparity due to their struggles with maintaining basic living standards, as any gains in income are undermined by rising living costs.

The report also underscores the significance of asset inequality, which exacerbates people's feelings of economic disadvantage. It shows that individuals with fewer financial assets or no property are more likely to perceive a growing gap between themselves and those with wealth. Specifically, those in the lowest income bracket face immense challenges, such as spending nearly a fifth of their income on food, which starkly contrasts with the burden experienced by higher earners. The findings suggest that to effectively address the public's sense of inequality, policymakers need to consider the broader context of living expenses and asset distribution, not just income data.