More than half of South Korean households fall into the middle class when measured by income alone, but only one in four qualifies as "true middle class" once spending, savings, assets and retirement readiness are taken into account.
Income Puts 52.9% in the Middle Class, but Spending and Savings Shrink the Group
According to the 133rd edition of the THE100 Report, titled "Korea's True Middle Class: 25%," published on the 16th by NH Investment & Securities' 100-Year Life Institute, 52.9% of households and 58.6% of the population fall into the income-based middle class. The figure counts households earning between 28.08 million won and 74.88 million won a year, or 75% to 200% of the median equivalized disposable income of 37.44 million won. The report was written by Kim Jin-woong, a research fellow at the institute, based on an analysis of microdata from the 2025 Survey of Household Finances and Living Conditions.
The institute concluded that income figures alone cannot fully capture how households actually live. What matters is not how much a household earns but how much it can spend and set aside, and assets, debt and retirement preparation must support that lifestyle for it to be sustained, the institute said. It therefore examined consumption spending among households that met the income threshold.
Counting Assets and Debt, the True Middle Class Falls to 24.6%
When the institute set a minimum middle-class spending level at 15.67 million won a year — 75% of the median equivalized consumption expenditure of 20.89 million won — the share of households meeting that bar fell to 66.1%. Adding the capacity to save at least 10% of disposable income narrowed it further to 53.2%.
On assets, the institute defined the middle-class range as net worth between the median of 238.6 million won and the top 20% threshold of 694.32 million won. Applied together with the income criterion, the share of households meeting both conditions dropped to 19.5%.
Based on those item-by-item results, the institute grouped income, spending and savings as mandatory conditions and required households to meet at least two of three additional criteria — assets, debt and retirement readiness — to be classified as true middle class. Applying the standards in stages, the income-based middle class of 52.9% fell to 43.2% for adequate spending, then 39.9% for savings capacity, and finally 24.6%. Only 8.0% of households met all six conditions.
Among those identified as true middle class, the share was highest for households headed by people in their 40s at 30.5% and in their 50s at 31.2%, while it dropped sharply to 10.5% for those aged 70 and over. By housing type, owner-occupied households stood at 30.8%, more than double the 12.8% for households paying monthly rent. By employment status, permanent employees at 33.5% far outpaced temporary and daily-hire workers at 13.4% and the unemployed at 11.2%.
Retirement Readiness Is the Biggest Hurdle, Cutting the Share to 14.9%
Retirement readiness was cited as the single criterion that pulls the true middle-class share down the most. Applying the retirement standard strictly on its own drops the share to 14.9%.
Only 9.6% of households that have not yet retired said they were well prepared for retirement, while 55.6% of retired households said their living expenses were insufficient or severely insufficient.
"The standard for the middle class must shift from how much you earn to how well you live and how long you can sustain that life," Kim said.
