[Public Opinion Briefing Vol. 59-1] Perceptions and Realities of the Middle Class: The Serious ‘3 Discontents: Distrust, Dissatisfaction, Anxiety’ of the Middle Class

[Public Opinion Briefing Vol. 59] Survey on Perceptions of Social Strata

1. Perceptions and Realities of the Middle Class: The Serious ‘3 Discontents: Distrust, Dissatisfaction, Anxiety’ of the Middle Class

2. Middle Class Policies: Strengthening Social Resilience to Bolster the Middle Class

[Perceptions and Realities of the Middle Class 1] Perceptions of the Korean Middle Class: Significant Gap Between Subjective Standards and Reality

Growing Social Anxiety and Low Coping Capacity Lead to High Middle-Class Standards

Enhancing Social Resilience is Key to Middle-Class Policies

The standards for the middle class as perceived by the public far exceed the living standards of actual middle-class households. Generally, households falling within 50% to 150% of the median income (approximately 3.33 million KRW per month based on total household income in 2007), which is the midpoint when all households are ranked by income, are classified as the actual middle class. Actual middle-class households had an average monthly income of only 3.11 million KRW, financial assets of 39 million KRW, real estate assets of 190 million KRW, and a homeownership rate of 67.4%. To be considered middle class in Korea, individuals believe a monthly household income of 5.36 million KRW is necessary, along with average financial assets of 380 million KRW, real estate assets of 660 million KRW, owning one's home, and possessing a car with an engine displacement of 2300cc or more.

The discrepancy between the perceived standards of the middle class and reality inevitably leads to a low sense of belonging. Among those who fall within the middle-class income bracket (1.67 to 4.99 million KRW per month), as many as 41.2% underestimated their position, considering themselves lower class. Among those in the upper class (earning over 5 million KRW per month), only 4.8% identified as upper class, while 75% considered themselves middle class, and even 20.2% identified as lower class. Overall, there was a strong tendency to evaluate one's own social stratum lower than their objective position.

The higher perceived standards for the middle class appear to stem from anxiety that current individual preparations or the social safety net are insufficient to adequately address various social risks such as income reduction, old age, or job loss. Among these risk factors, concerns about old age (70.5%), reduction in income/assets (67.5%), illness and health issues (56.7%), and employment problems (56.3%) were most prominent for the middle class. The issue is that these risk factors are expected to worsen. When asked about anxiety factors ten years from now, middle-class respondents expressed concern that these problems would persist long-term, with 80% citing old age, 75.5% illness and health issues, and 74.4% income or asset reduction.

A different pattern emerges for middle-class households with children in elementary, middle, or high school. Child-rearing is not only the biggest concern but also exacerbates feelings of anxiety regarding old age, employment, and income reduction compared to those without school-aged children. For middle-class families with school-aged children, child-rearing was cited as the top anxiety factor by 81.5%, followed by income/asset reduction (79.7%), old age (78.0%), and employment insecurity (63.9%).

These issues cannot be fully resolved by temporary government support policies or basic social safety nets. To strengthen the middle class, which forms the foundation of society, it is crucial to lift the poor into the middle class while simultaneously enabling the vulnerable middle class, at risk of falling into poverty, to develop self-reliance. While expanding the social safety net to ensure a minimum standard of living for the poor and lower-income strata, and providing welfare support are important, the focus of middle-class policies should be on fostering social resilience, enabling individuals to cope with social risks independently. Reflecting their anxieties, one-quarter of middle-class respondents indicated that social security systems should prioritize the middle class.

[Table 1] Middle-Class Standards Perceived by the Public vs. Actual Middle-Class Status

[Figure 1] Discrepancy (%) Between Income-Based Stratification and Subjective Class Consciousness

Note: Income strata are classified according to the general OECD standard, where the middle class is defined as 50%-150% of the median income for a four-person household in 2007 (median total income was 3.33 million KRW per month, thus 1.67 to 4.49 million KRW), with below 50% classified as poor and above 150% as upper class. (The OECD uses disposable income, but this survey uses total income.)

[Figure 2] Primary Anxiety Factors for Individuals

Note: The percentage is calculated by summing responses for “Very Concerned” and “Somewhat Concerned” for each anxiety factor.

Lee Sook-jong (President, EAI; Professor, Department of Public Administration, Sungkyunkwan University)

[Perceptions and Realities of the Middle Class 2] Political and Social Perceptions of the Middle Class

Middle-Class Dissatisfaction and Distrust More Severe Than Among the Poor

Restoring Middle-Class Trust Emerges as a Top Priority for Government and Political Circles

The Korean middle class emerged as a politically critical group with significant feelings of alienation and dissatisfaction. Distrust in government policies was particularly high. When asked, "Which social stratum does government policy best represent?" 67.1% of the middle class responded, "the upper class." The corresponding figures for other strata were 56.5% for the poor and 60.6% for the upper class. Furthermore, the statement, "The government works for the benefit of the entire populace rather than for the interests of a few specific groups," received the highest proportion of negative responses from the middle class among the three strata. The percentage of respondents who disagreed with this statement was 67.3% for the middle class, 57.6% for the poor, and 61.7% for the upper class. This indicates a particularly high level of policy distrust and dissatisfaction among the middle class, who perceive government policies as favoring the upper class.

This dissatisfaction stemming from inequality and alienation is also evident in responses regarding the fairness of law enforcement. When asked about the extent to which laws are enforced equally in our society, 60% of the middle class responded that law enforcement is unequal, a relatively higher figure compared to the poor (51.5%) and the upper class (55.7%). Additionally, the statement, "A small number of people control the government and politics regardless of the public's will," received the highest agreement rate from the middle class. The response rates were 81.2% for the middle class, 74.4% for the poor, and 78.8% for the upper class.

The role of the middle class is crucial for a healthy democracy. However, as this survey reveals, the middle class's perception of politics and society is alarmingly negative. The middle class does not believe that core democratic values such as fairness, equity, and representation are being properly implemented in our society. Restoring the trust of the middle class has emerged as an urgent task for the government and political circles.

[Figure 1] Political Distrust Deviation by Income Stratum (%)

Kang Won-taek (Professor, Department of Political Science and International Relations, Soongsil University)

[Perceptions and Realities of the Middle Class 3] Social Mobility Between Strata

43.0% of the Poor and 35.9% of the Vulnerable Middle Class Experienced a Decline in Social Status Over the Past 10 Years

The Poor and Vulnerable Middle Class Need to Enhance Social Resilience to Foster Upward Mobility

In Korean society, subjective sense of belonging plays a significant role in addition to objective class distinctions. This is due to the rapid stratification that has occurred in just one generation, starting from a society that was 'poor but equal.' Sensitive to relative deprivation, many people who are objectively in the middle class perceive themselves as commoners. They gauge their current position by comparing themselves to those around them, and their achievements and failures by comparing themselves to their parents' generation and to yesterday. While the current economic anxieties and social risk factors are problematic, changes in one's social stratum over time also significantly influence perceptions of the middle class.

Compared to their parents' generation, a significant portion (40.2%) reported an improvement in their social status, indicating a perception that they have escaped the extreme poverty experienced by their parents. However, the experience of the past 10 years can be summarized as a 'sense of contraction,' with more respondents (30.5%) reporting downward mobility than upward mobility (25.3%).

Furthermore, the assessment of mobility over the past decade varied significantly by income stratum. Downward mobility was particularly pronounced among the poor (below 50% of median income), with a substantial 43% reporting a decline in their social status. In contrast, only 35.9% of the vulnerable middle class (50-100% of median income), 22.7% of the core middle class (100-150% of median income), and 23.8% of the high-income class (above 150% of median income) reported such a decline. Conversely, the proportion reporting upward mobility over the past decade was only 11.6% for the poor, while it was 21.7% for the vulnerable middle class, 28.9% for the core middle class, and 34% for the high-income class, showing a widening gap. The collapse of the middle class over the past decade has been accompanied by extensive upward and downward mobility, resulting in a deepening divide in self-perception between strata characterized by confidence and those experiencing contraction.

What about future prospects? Over 56.6% of the high-income class and over 60% of the middle class anticipate their situation will improve in the next ten years, and even more so for their children's generation (61.9%). In contrast, only 22.8% of the poor hold such optimistic views, revealing a 'hope gap' with other strata. The poorer the individuals, the greater their deficit in the 'hope account' for the future. Without support for upward mobility and measures to reduce inter-stratum disparities, relative deprivation and social distrust are bound to increase.

[Figure 1] Intergenerational Social Mobility (Parents → Self → Children's Generation)

[Figure 2] Intragenerational Social Mobility (10 Years Ago → Present → 10 Years Later)

[Figure 3] Percentage of Social Decline by Stratum Compared to 10 Years Ago (%)

[Figure 4] Outlook for Social Mobility in 10 Years Compared to Present (%)

[Figure 5] Comparison of Class Belonging (10 Years Ago, Present, 10 Years Later)

[Figure 6] Comparison of Class Belonging (Parents' Generation, Current Generation, Children's Generation)

Lee Jae-youl (Professor, Department of Social Welfare, Seoul National University)

[Perceptions and Realities of the Middle Class 4] Education and Middle-Class Resilience

Reduced Opportunities for Social Mobility and Success Through Education; Middle Class 'All-In' on Children's Education

Household Education Expenses Burden Leads to Inheritance of University Prestige, Low Birth Rate, and Old Age Concerns

What do you value most in life? Wealth, social success, marriage, or leisure? The answer from the Korean middle class (50-150% of median income) is neither of these, but 'children.' Nearly 70% responded that children are very important in their lives. Slightly over half found marriage very important, while the proportion considering wealth and assets very important was lower. The number who considered their own social success very important was just over 40%. The happiness of our middle class depends more on their children's success than their own.

The middle class believes that education is the key to their children's success and social mobility. In particular, expectations for children's education among the Korean middle class are substantial. Over nine out of ten hope their children will complete at least a four-year university degree, and six out of ten consider studying abroad.

However, the reality is unsatisfactory. More respondents believe educational opportunities are unequal than those who do not. Only one-third of the middle class are satisfied with the government's education budget, with the majority advocating for an increase. It is understandable, given that over half express dissatisfaction with public education, which is responsible for educating their children. This dissatisfaction also leads to a reality where even a university degree does not guarantee social success or a stable life. Yet, with no other apparent solutions, a vicious cycle of 'going all-in' on children's education repeats.

Dreams are grand, but society does not provide adequate support, leaving individuals to bear the burden themselves. When asked about the largest financial expenditure for these middle-class households, 44% cited education expenses, more than double the amount spent on food and living costs. As the burden of educating children escalates, the 'inheritance of wealth' leads to the 'inheritance of university prestige,' making it difficult to avoid the mindset of 'having only one child and raising them well.' When asked for the reasons for having fewer children, 63.5% cited child-rearing costs.

For the middle class, who have invested everything in their children, old-age security is the next major concern. Since they do not agree with the idea that adult children should be responsible for their parents' old age, they have no intention of relying on their children for their own retirement. Should we blame the selfless love of those who bet their dreams on their children but had no room to prepare for their own old age? What hope can Korean society offer to our middle class, who foresee a bleak old age?

Expanding educational opportunities should be the first step in finding hope. Increased social investment in education and efforts to reduce the educational cost burden on middle-class families are urgently needed. Creating pathways to social success in this manner is the surest way to restore the middle class in our society.

[Figure 1] Value Differences by Social Stratum

[Figure 2] Discrepancy (%) in Expected Child's Education Level by Social Stratum

[Figure 3] Reasons for Having Fewer Children in Middle-Class Households

Koo In-hoe (Professor, Department of Social Welfare, Seoul National University)