"A Monthly Income of 6.31 Million Won and Net Assets of 410 Million Won Needed to Be 'True Middle Class'... 72% Own Their Homes"

[Financial News] An analysis found that households meeting all the criteria for income, consumption, savings, and assets to qualify as the “true middle class” account for only one-quarter of all households in South Korea. Based on income alone, more than half of all households would be considered middle class. However, far fewer households can maintain a middle-class standard of living while preparing for the future. These households earn 6.31 million won per month and spend 3.19 million won. Their average net assets amount to 417 million won, including 112.3 million won in financial assets, and 72.5% live in homes they own.

According to the “South Korea’s True Middle Class” report released on the 16th by the 100-Year Life Research Institute of NH Investment & Securities, the income-based middle class in South Korea accounts for 52.9% of all households under Organisation for Economic Co-operation and Development (OECD) standards. The OECD defines the middle class as those whose equivalized disposable income is between 75% and 200% of the median for the entire population.
In 2025, the median equivalized disposable income was 37.44 million won per year, putting the middle-class range at 28.08 million to 74.88 million won. However, the actual income threshold varies depending on the number of household members. A monthly income of 2.34 million to 6.24 million won for a one-person household, 3.31 million to 8.82 million won for a two-person household, or 4.05 million to 10.81 million won for a three-person household qualifies as middle-class income.
The report identified annual consumption of at least 15.67 million won—75% of the median equivalized consumption expenditure for all households, which was 20.89 million won—as the “minimum consumption level befitting the middle class.” The analysis found that one-person households spend at least 15.76 million won annually, two-person households 22.16 million won, and three-person households 27.13 million won. In addition, 53.2% of all households had the “capacity to save,” meaning they retained at least 10% of their disposable income after consumption.

Assets, debt, and retirement preparation were also included in the assessment. The institute classified households with net assets of 238.6 million to 694.32 million won as the asset-based middle class. It also assessed whether their annual principal and interest payments were no more than 30% of disposable income and whether their retirement preparation and ability to cover living expenses were at least average.
The results showed that only 24.6% of all households qualified as the “true middle class”—those that met the income, consumption, and savings criteria and also satisfied at least two of the criteria for assets, debt, and retirement preparation. According to the institute, their median disposable income was 75.72 million won per year, while consumption expenditure was 38.22 million won. Simply subtracting consumption expenditure from income leaves approximately 37.5 million won annually. Their median net assets were 417.05 million won, higher than the 238.6 million won for all households, while their financial assets totaled 112.3 million won, also above the 63.12 million won for all households.
The institute explained, "More than one in two households in South Korea earn a middle-level income, but only about one in four households can use that income to maintain an appropriate level of consumption, save money, and build an economic safety net for the future."
It added, "Stable earned income and a solid housing foundation enable appropriate consumption and savings, leading to asset accumulation and retirement preparation. This virtuous cycle is the key to creating a true middle class."

[email protected] Kim Hee-sun Reporter