Global wealth gap widens as low-income households face shrinking net worth

Recent financial data from South Korea and the United States reveal a widening gap in wealth and asset distribution despite general increases in household income.

In South Korea, the 2025 Household Financial Welfare Survey shows that while average net assets rose by 5.0% year-on-year, the net assets of the bottom 20% of households decreased by 4.9%. The top 10% of households now hold 46.1% of the nation's net assets. Experts attribute this to a disparity in savings capacity; the bottom 20% spend approximately 95.6% of their income, leaving only 4.4% for savings, whereas the top 20% retain 46.8% of their income. Rising real estate prices, particularly in the Seoul metropolitan area, have further exacerbated this divide between property owners and non-owners.

In the United States, the Federal Reserve’s 2025 Survey of Consumer Finances indicates that while median real income rose by 7% between 2022 and 2025, the bottom 25% of households saw their net worth plummet by approximately 55%, dropping from $3,800 to $1,700. The median net worth for Black households also fell by 25%. While the top 10% benefited significantly from asset appreciation, lower-income groups faced increased financial stress. Additionally, the proportion of households reporting loan delinquencies rose from approximately 12% to nearly 20%, and the use of Buy Now, Pay Later (BNPL) services increased from 7% to 12%.