Middle-class hit hardest in 2024 after COVID-19: data

South Korea’s middle-income group experienced a broad income setback in 2024. The income of 38.9 percent of people in the third income quintile decreased compared with 2023. This matters because the middle-income group is large enough to show how widely economic pressure is being felt, beyond the poorest households.

The decline was not limited to small changes. About 12.8 percent of the third quintile saw income fall by at least 50 percent. At the same time, 57.3 percent reported higher income, but that was below the 63 percent recorded between 2022 and 2023.

The 2024 result reversed a four-year improvement. The share with falling income had dropped from 41.2 percent in 2020 to 35.2 percent in 2023, then rose to 38.9 percent in 2024. The data point to renewed income instability after the pandemic-era downturn.

The decline was substantial in both reach and severity. Income decreased for 38.9 percent of people in South Korea’s third income quintile in 2024 compared with 2023. That means nearly four out of every ten people in this middle-income group had less income than the previous year.

The sharpest losses affected a smaller but significant share. About 12.8 percent saw their income drop by at least 50 percent. The article does not provide the group’s total population, so it cannot establish an absolute number of people from the stated figures. It reports the scale as percentages.

Income increases were more common, affecting 57.3 percent of the group. However, this was down from 63 percent in the previous comparison and was the lowest increase rate since 2021. Only 9.7 percent experienced an increase of at least 50 percent, the smallest share since tracking began in 2018.

An income quintile divides a population into five equal groups after ranking households or people by income. Each group represents 20 percent of the population. The third income quintile is the group in the center of that ranking, so it is commonly described as the middle-income bracket.

For example, the first quintile contains the lowest-income 20 percent, while the fifth contains the highest-income 20 percent. The third quintile sits between the second and fourth groups. Its position does not mean every household has the same income; it identifies a range around the population’s middle.

This grouping helps researchers compare income changes across the economic ladder. In the article, the third quintile is the main focus because its 2024 results show a sharp reversal: 38.9 percent experienced declining income, while 57.3 percent saw income increase. The figures describe group-wide movement, not every individual household.

The 2024 result broke a clear downward pattern in the share of middle-income people with falling income. In 2020, 41.2 percent of the third quintile experienced a decrease. That proportion fell to 38.6 percent in 2021, 35.8 percent in 2022, and 35.2 percent in 2023.

The reversal came in 2024, when the figure rose to 38.9 percent. This was not as high as the 2020 level, but it was the highest rate since that pandemic year. The change means income declines became more common after three consecutive years of improvement.

Other measures also weakened. The share whose income increased fell to 57.3 percent in 2024, from 63 percent between 2022 and 2023. The share gaining at least 50 percent dropped to 9.7 percent, the smallest figure since government tracking began in 2018. The article does not identify a specific cause for the reversal.

The increase in income declines was not confined to the third quintile. The article reports falling income among several other groups in 2024 compared with 2023. This broader pattern suggests that income pressure affected people across different positions in the income ranking.

The second quintile had the highest listed rate, with 40.5 percent seeing income decrease. The third quintile followed at 36.5 percent in the article’s comparison, while the fifth quintile recorded 35.1 percent. The first quintile had the lowest listed rate, at 29.1 percent. These figures are presented as group comparisons.

The article separately identifies 38.9 percent as the decline rate for the middle-income group in its opening data. Because the text gives both 38.9 percent and 36.5 percent for the third quintile, those figures are not fully consistent. The broader conclusion remains clear: income decreases rose among multiple income groups in 2024.

When income falls, a household has less money available for regular needs. It may struggle to cover housing payments, food, utilities, transportation, education, health care, and other necessities. The effect depends on the size and duration of the decline, as well as the household’s savings and existing commitments.

A small, temporary drop might lead to reduced discretionary spending. A larger drop, such as the at-least-50-percent decline reported for 12.8 percent of the third quintile, can create sharper trade-offs. A household might postpone education costs, buy less food, draw down savings, or fall behind on housing-related payments. These are general financial consequences, not outcomes measured in the article.

The article establishes that income declines became more common in 2024, but it does not track households’ spending, debt, savings, or payment problems. Therefore, the data show potential financial pressure rather than proving how families changed their living arrangements or consumption.

Income measures money received, while living standards depend partly on what that money can purchase. If prices rise, the same income buys fewer goods and services. This means a household’s nominal income can increase while its real purchasing power stays flat or falls. The article reports income changes but does not provide price data.

For example, suppose income rises by 5 percent but food, housing, and education costs rise by 8 percent. The household has more money in numerical terms, yet it can afford less than before. Conversely, a small income decline might have a limited effect if prices fall or the household has savings. The result depends on both income and costs.

This distinction matters when interpreting the 2024 figures. The article shows that 57.3 percent of the middle-income group had higher income, but it does not show whether their purchasing power improved. A complete living-standards assessment would also need prices and household expenses.