South Korea's wealth gap widens under President Lee's economic boom
A year into President Lee Jae Myung’s term, South Korea’s wealth gap has widened sharply. Those holding property and stocks have seen massive gains, while renters and non-investors face rising costs. The housing and stock markets have surged, but affordability has worsened for many. Apartment prices in Seoul and nearby regions have climbed steeply over the past year. Some properties now cost 500 million to 1 billion won more than they did 12 months ago. At the same time, the supply of rental homes has plummeted by over 30 percent, driving up jeonse (lump-sum deposit) and monthly rental prices.
New apartment completions in the Seoul area will reach just 106,000 units this year—the lowest in 12 years. Government policies targeting multiple-home owners may have reduced rental availability further. The stock market has also boomed under Lee’s administration. The Kospi index has nearly tripled since he took office. Individual investors made 429 trillion won from stocks in 2025 alone. An investor who placed 100 million won in an index fund last summer would now hold around 300 million won. Yet the benefits remain concentrated. The wealthiest 20 percent of households own 73 percent of all stocks. Outstanding margin loans for stock purchases have also hit a record 36 trillion won, signalling heavy borrowing to chase gains.
The past year has deepened financial divides. Property and stock owners have seen extraordinary returns, while those without assets struggle with soaring housing costs. With rental shortages persisting and stock wealth unevenly spread, the economic split between haves and have-nots looks set to continue.
