Earned income increased by 1.5 times, the increase was insignificant
There are few employment assets in the low-growth phase
The number of ‘young-chul’ of owning a house has increased significantly.
Compared to young people of the same age 20 years ago, the income of the ‘MZ generation’ (born between 1981 and 2010), which accounts for about half of the total population, increased 1.5 times while their debt increased more than 4 times. It is analyzed that the weak economic power of the main consumers in their 20s and 30s can have a negative impact on the Korean economy.
According to a report titled ‘The Current Status and Characteristics of the MZ Generation’ released by the Bank of Korea on the 15th, the MZ generation accounted for 46.9% of the total population as of 2020, reaching half. As a result, the economic status occupied by the MZ generation increased, but the income did not increase significantly compared to the middle-aged people in their 40s and 60s. As of 2018, the earned income of Generation MZ (currently 24-39 years old) was 1.4 times that of the same age group (24-39 years old) in 2000. The increase in earnings of Generation X (born between 1965 and 1979) and Generation BB (born between 1955 and 1964) was 1.5 times and 1.6 times that of the same age group in 2000. Even compared to the same age group in 2010 after the financial crisis, as of 2018, the earned income multiple of Generation MZ was 1.07, lower than Generation X (1.08) and Generation BB (1.2 times).
The financial assets of the MZ generation also stagnated from 2001 to 2018. Choi Young-jun, a research fellow at the BOK’s Microsystem Research Lab, said, “Generation MZ is the first university graduate to find a job since the global economy entered a low-growth phase after the 2008 financial crisis, and they received lower wages than other generations. Income growth rate was low, and because of this, there was not enough investment to accumulate financial assets.”
However, in terms of total debt, the MZ generation in 2018 was 4.3 times that of the same age group in 2000. The total debt of Generation X and Generation BB increased by 2.4 times and 1.8 times, respectively, compared to the same age group in the 2000s. Above all, the report analyzed that this was largely due to the fact that the MZ generation greatly increased their loans to buy a house. Accordingly, it was found that the financial wealth inequality of the MZ generation has worsened in recent years. The total consumption of the MZ generation has remained almost unchanged since the 2008 global financial crisis, as income did not increase significantly, only debt increased.
Reporter Song Su-yeon