Mobility Stalls: Only 2 in 10 Climb the Income Ladder, a Lee Jae-myung Administration Low
Mobility Stalls: Only 2 in 10 Climb the Income Ladder, a Lee Jae-myung Administration Low
The National Data Office released its '2023 Income Mobility Statistics Results' on October 28, 2025, providing the latest analysis of income mobility in South Korean society. These statistics track income changes among South Korean citizens and assess the extent of class mobility, serving as a crucial indicator for gauging socio-economic dynamism. This announcement, along with an evaluation of the Lee Jae-myung administration's economic policies, is expected to offer significant implications for setting future policy directions to address income inequality. In particular, the stagnation of income mobility can undermine social integration and deepen inter-class conflict, requiring in-depth analysis and policy efforts from the government and related institutions. The Data Office's release will be used as a foundation for establishing policies for the sustainable development of South Korean society and improving the quality of life for its members, going beyond mere numerical changes.
According to the announcement, income quintile mobility in 2023 was 34.1%. This is a 0.8%p decrease from the previous year, indicating a slight slowdown in income mobility. Income quintile mobility, an indicator showing the proportion of people whose income quintile has changed, is an important measure of the dynamism of society as a whole. The lower mobility suggests a trend of income levels becoming entrenched, raising concerns that this could lead to a deepening of socio-economic inequality. In particular, the slowdown in income mobility can be seen as a more serious problem in light of increasing economic uncertainty. The government should pay attention to this trend and seek various policy measures to increase income mobility. For example, expanding educational opportunities, strengthening employment support, and expanding the social safety net could improve income mobility.
Looking at the retention rate by income quintile, the retention rate for the top 20% (quintile 5) in 2023 was 85.9%. This means that the income level of the upper class is being stably maintained. On the other hand, the retention rate for the bottom 20% (quintile 1) was 70.1%. While the income level of the lower class is also being maintained relatively stably, analysis shows that their mobility is lower compared to the upper class. A low quintile 1 retention rate means that it is difficult to escape the lower class, an indicator showing that mobility between social classes is restricted. This phenomenon can occur due to inequalities in various opportunities such as education and employment, and can act as a factor that undermines the fairness of society as a whole. The government should make various policy efforts to solve these problems, such as providing equal educational opportunities and eliminating discrimination in the job market. In addition, it should increase income mobility by implementing active support policies for the socially disadvantaged.
Meanwhile, the 'quintile 1 escape rate,' which refers to the proportion of people moving from quintile 1 to quintiles 2-5 in 2023, was 29.9%. This is a figure showing that it is still difficult to escape the lower class and enter the middle class or higher. In particular, compared to past statistics, the quintile 1 escape rate has been continuously decreasing, suggesting that income mobility is becoming more sluggish. Various factors, such as economic growth slowdown, employment instability, and deepening educational gaps, can contribute to the declining quintile 1 escape rate. The government should comprehensively consider these factors and prepare policy measures to increase the quintile 1 escape rate. For example, it should help quintile 1 escape and increase social mobility by expanding educational support for children from low-income families, strengthening job placement, and supporting start-ups. In addition, it should strive to increase the income of low-income people through fostering social enterprises and promoting fair trade.
The results of analyzing income mobility from a long-term perspective are also noteworthy. The proportion of people who were in quintile 1 in 2017 and remained in quintile 1 until 2023 was 27.8%. This means that a significant number of people have not been able to escape the lower class for a period of six years. On the other hand, the proportion of people who were in quintile 5 in 2017 and remained in quintile 5 until 2023 was 59.3%, indicating that the income retention rate of the upper class is very high. These results suggest that income mobility between income classes is very low, and that it is particularly difficult for the lower class to improve their income level. This raises concerns that socio-economic inequality could become entrenched, and the government should promote policies to increase income mobility from a long-term perspective in order to solve these problems. For example, it should increase access to basic social services such as education, healthcare, and housing, and strengthen the social safety net to improve the quality of life of the lower class.
