[2020 National Audit] Steep Rise in Housing Prices... The Wealth Gap Has Widened Further

Status of housing assets by percentile of Seoul households with housing from 2015 to 2018 (Provided by the office of Assemblyman Kim Sang-hoon)

[Asia Economy Reporter Lee Chun-hee] Even among households owning homes in Seoul, those with more expensive houses have benefited more from the rise in housing prices.

According to the "Status of Housing Assets of Homeowning Households in Seoul" submitted by the Ministry of Land, Infrastructure and Transport and Statistics Korea to Kim Sang-hoon, a member of the National Assembly's Land, Infrastructure and Transport Committee from the People Power Party, from 2015 to 2018, the housing assets of the top 10% in Seoul increased by an average of 513 million KRW, whereas those of the bottom 10% increased by only 13 million KRW.

Rep. Kim analyzed, "The increase in housing assets of the top 10% expanded during the Moon Jae-in administration." From 1.232 billion KRW in 2015, it rose by 147 million KRW to 1.379 billion KRW in 2016. After the Moon Jae-in administration began, it increased by 160 million KRW in 2017 compared to the previous year, and in 2018, it surged to 1.745 billion KRW, an increase of 206 million KRW from the previous year.

On the other hand, the housing assets of the bottom 10% showed a slowdown in growth. From 56 million KRW in 2015 to 62 million KRW in 2016, then 65 million KRW in 2017, and 69 million KRW in 2018, the increase before the Moon Jae-in administration was 6 million KRW, but it halved to 3 to 4 million KRW afterward.

As a result, the gap in housing assets between the top and bottom 10% widened by about 500 million KRW, from 1.176 billion KRW in 2015 to 1.676 billion KRW in 2018. Additionally, the 9th decile (top 11?20%) and 8th decile groups also saw asset growth of about 150 to 200 million KRW, while the 1st to 6th deciles experienced increases of less than 100 million KRW.

Kim Sang-hoon, Member of the People Power Party (Provided by Kim Sang-hoon’s Office)

Rep. Kim Sang-hoon emphasized, "The rise in housing prices during the Moon Jae-in administration not only divided those who own homes from those who do not, but also created a stark asset gap depending on where the homeowners hold their properties," adding, "Since this polarized asset distribution ultimately affects the social strata of future generations, discussions on the forthcoming side effects need to begin now."

This content was produced with the assistance of AI translation services.