NARS Releases the Latest Results of the Multidimensional Inequality Index Based on the Hybrid Multidimensional Index (H-MDI), Using 2024 DataQualitative Deterioration of Inequality Continues Due to Sustained Widening of Asset Inequality

• The contribution of asset inequality increased across all generations.
o Assets: 36.0% → 40.0%
o Income: 35.1% → 33.0%

• The multidimensional inequality index decreased slightly from 0.190 in 2023 to 0.185 in 2024, but generational gaps remain significant.
① Although inequality among the elderly improved somewhat, from 0.226 to 0.209, it remains the most severe among all generations.
② Inequality among the middle-aged generation, or Generation X, is accelerating, with asset inequality increasing sharply.
③ Among younger generations, namely Millennials and Generation Z, asset gaps are emerging as a key factor in inequality.

• The study proposes the need to improve systems for linking and utilizing administrative data in order to advance research on inequality.

• The NARS holds a forum titled “2026 Multidimensional Inequality Index and Measures to Advance Inequality Research.”
└ Seminar Room 1, National Assembly Members’ Office Building, May 20 (Wed), 3:00 p.m. – 5:00 p.m.

Qualitative Deterioration of Inequality in Korea Continues: The Key Issue Is Asset Inequality

The National Assembly Research Service (NARS) holds the Forum on the 2026 Multidimensional Inequality Index and Measures to Advance Inequality Research at 3:00 p.m. on Wednesday, May 20, in Seminar Room 1 of the National Assembly Members’ Office Building.

The NARS, in its first study on the ‘Multidimensional Inequality Index’ conducted under the leadership of the National Assembly, announced that “while income inequality has improved to some extent, overall inequality across society has actually worsened.” (Oct. 28, 2025)

The Gini coefficient for disposable income, a key indicator of inequality, declined from 0.387 in 2011 to 0.323 in 2023, indicating a decrease in income inequality.

However, analysis shows that the multidimensional inequality index, which integrates income, assets, education, health, and other dimensions, rose from 0.176 in 2011 to 0.190 in 2023 over the recent 12-year period from 2011 to 2023.

Following last year’s study based on 2011–2023 data, NARS commissioned a research team of the Population Association of Korea, led by Professor Kye Bong-oh of Kookmin University, to update the 2026 multidimensional inequality index by incorporating 2024 data. The findings will be presented at 3:00 p.m. on Wednesday, May 20, 2026, in Seminar Room 1 of the National Assembly Members’ Office Building. According to the research findings, while the 2026 multidimensional inequality index based on the Hybrid Multidimensional Index (H-MDI) decreased slightly, structural disparities among generations continue to persist.

The 2026 multidimensional inequality index based on the H-MDI, using 2024 data, decreased marginally from the previous year, from 0.190 in 2023 to 0.185 in 2024. See Figure 1.

The 2026 Multidimensional Inequality Index (H-MDI) also showed clear differences across generations, indicating that structural generational inequality persists.

Analysis of the 2024 data shows that inequality among the elderly generation is on a downward trend, from 0.226 in 2023 to 0.209 in 2024. However, this generation still records the highest level of inequality compared with other generations, and the gap with younger generations remains at a certain level. The elderly poverty rate in 2024 fell by 2.3 percentage points from the previous year, showing a noticeable improvement. This is presumed to reflect the effects of increased government spending on senior employment programs and higher basic pension benefits, which appear to have contributed to easing disposable income inequality.

Generation X was the only generation in which the multidimensional inequality index increased, from 0.161 in 2023 to 0.165 in 2024. Unlike other generations, where inequality in dimensions other than assets decreased, Generation X saw education inequality remain unchanged at 0.85, while health inequality rose from 0.097 in 2023 to 0.103 in 2024 and income inequality decreased slightly, from 0.268 in 2023 to 0.267 in 2024. The increase is analyzed as being driven largely by a sharp rise in asset inequality, from 0.313 in 2023 to 0.344 in 2024.

For other generations, while asset inequality has increased, inequality in other dimensions has decreased, causing the multidimensional inequality index to remain at a similar level.

The multidimensional inequality index based on the Hybrid Multidimensional Index (H-MDI) is an index developed and presented by examining multiple related dimensions, including income, assets, education, and health rather than analyzing inequality based on a single factor.

In particular, the influence of asset inequality increased from the previous year and was found to be a key factor in the deepening of overall inequality.

An analysis of the contributions of income, asset, education, and health inequality to the multidimensional inequality index shows that in 2011, income inequality, at 39.2%, was the main factor behind multidimensional inequality. In 2023, assets, at 36.0%, stood at a level similar to that of income, at 35.1%. In 2024, however, the contribution of asset inequality increased further from the previous year: assets rose from 36.0% in 2023 to 40.0% in 2024, while income declined from 35.1% in 2023 to 33.0% in 2024. See Figure 2.

In particular, the contribution of asset inequality appears to have accelerated since 2018. Although it declined somewhat in 2023 compared to 2022, its share increased again in 2024, making it the largest contributing factor.

The contribution of income inequality had long accounted for the largest share of overall inequality, hovering around 40%. Since 2016, however, it has continued to decline, reaching the 30% range, at 33.0%, in 2024.

Although inequalities in education and health have stagnated or declined gradually, they were still identified as significant contributing factors.

Among the factors contributing to inequality by generation, the contribution of assets was found to have increased across all generations.

An analysis of the contribution to inequality by generation shows that, as in 2023, the contribution of asset inequality increased across all generations in 2024. See Figure 3.

In particular, the contribution of asset inequality increased sharply among Millennials, from 42.8% in 2023 to 47.4% in 2024, and among Generation Z, from 45.5% in 2023 to 51.6% in 2024. This indicates that the asset gap functions as a key factor in inequality, particularly among younger generations.

The results of the analysis on the factors contributing to intergenerational inequality also show that there are differences in the factors that account for a significant portion of inequality among younger generations, namely Generation Z and Millennials; middle generations, namely Generation X and the 586 Generation; and the older generation. It also shows that these qualitative deteriorations and structural differences have not been resolved over time.

Among younger generations, assets account for a large share. Among middle generations, assets and income account for large shares. Among the elderly, education accounts for a relatively large share and this trend continued in 2024.

Generational Classification Based on Cohorts
• Generation Z: people born in or after 1991
• Millennials: people born between 1981 and 1990
• Generation X: people born between 1971 and 1980
• 586 Generation: people born between 1961 and 1970
• Older generation: people born before 1960

The findings of this study reaffirm that conventional income-centered analyses of inequality do not sufficiently explain reality.

Last year’s study confirmed that the contribution of income inequality had declined while the contribution of asset inequality had increased. The 2026 study further confirms that the contribution of asset inequality has continued to rise. This shows that conventional income-centered analyses of inequality do not adequately explain reality, and that redistribution policies focused solely on income have only a limited effect on alleviating inequality.

In particular, even among people with the same income level, life opportunities and outcomes can differ greatly depending on their levels of assets, health, and education. The findings therefore confirm that a multidimensional approach is essential for policy design.

Accordingly, the study suggests that the multidimensional inequality index needs to be actively used in policymaking, and that efforts to further develop the index should continue.

The research team also raised the need to accumulate and update time-series data, improve methodology to address the limitations of the equal-weighting method of 1:1:1:1, and institutionalize a system for the periodic updating and publication of the index.

Future research will review various inequality indices, including the coefficient of variation (CV), reset weights and sensitivity by reflecting statistical techniques, expert judgment, and public perception surveys, and pursue the establishment of a system for the regular updating and publication of the indices.

Measures Proposed for Linking and Utilizing Administrative Data to Advance Inequality Research At the forum, a study on measures for utilizing administrative data, conducted by Kim In-soo, Associate Research Fellow at the Korea Social Security Information Service and a member of the Korean Association for Policy Studies, will also be presented as a way to improve the precision and policy applicability of inequality research.

Although Korea’s administrative data have been accumulated across various fields, including income, assets, education, health, and employment, their use for research remains substantially constrained due to fragmented management across institutions and strict access restrictions.

In particular, in areas requiring multidimensional analysis, such as inequality, it has been pointed out that substantive analysis of causes and verification of policy effects are difficult unless data from different institutions are linked. If diverse administrative data are linked and utilized, it is expected that analyses directly applicable to policy design will become possible.

For example, analyzing the relationships among education level, employment, and income requires linking educational attainment information from the Ministry of Education, employment insurance information, and income and asset data from the National Tax Service. Similarly, analyzing the effects of the mandatory employment system for persons with disabilities requires integrated analysis of employment information, income and asset information, and welfare information.

In addition, the study suggests that linking health insurance and medical information with income and welfare data is essential for analyzing the impact of rare diseases on household income and caregiving burdens. It was also emphasized that expanding the use of administrative data requires institutional improvements based on a balance between personal information protection and public-interest use.

Under the principle of “Public Data for Public Good,” the presentation suggests that detailed guidelines need to be established on the standards and methods for providing data that can be applied to scientific research and industrial uses for the public good.

In addition, key tasks identified included the establishment of a tentatively named Administrative Data Hub that would enable the joint use of administrative data currently scattered across institutions, inter-ministerial cooperation, and the establishment of legal frameworks to make such sharing mandatory.

Forum Expected to Explore Legislative and Policy Responses to Address Inequality The forum will proceed in the order of an opening ceremony, presentations, and a panel discussion session. Experts from academia and the policy field will participate in discussing strategies for responding to inequality.

The opening ceremony will begin with opening remarks by NARS Chief Kwan Hu Lee, followed by congratulatory remarks by National Assembly Speaker Woo Won Shik, Lee Seok-hwan, President of the Korean Association for Policy Studies, and Choi Seul-ki, President of the Population Association of Korea.

The presentation session will feature an interim presentation by Professor Kye Bong-oh of the Department of Sociology at Kookmin University on “Research on the 2026 Multidimensional Inequality Index and Measures for Its Advancement,” followed by a presentation by Kim In-soo, Associate Research Fellow at the Korea Social Security Information Service, on “Measures for Utilizing Administrative Data for Inequality Research.”

The panel discussion session will be moderated by Jong-sung You, Director of the Korea Inequality Research Lab at Yonsei University and Visiting Professor in the Department of Public Administration. Panelists will include Youngmi Kim, Professor in the Department of Sociology at Yonsei University; Jeon Ji-sung, Research Fellow at the Gangwon Institute; Gu Seul-yi, Head of the Environment and Labor Team at the NARS; and Kim Ji-eun, Director of the National Data Planning and Coordination Division at the Ministry of Data and Statistics.

The NARS expects this forum to serve as an opportunity to deepen understanding of multidimensional inequality, review the framework for utilizing data to inform evidence-based policymaking, and explore more effective legislative and policy responses to address inequality.

The NARS plans to continue updating and publishing the multidimensional inequality index and to strengthen the National Assembly’s policy response capacity so that the index can lead to a legislative action plan for addressing inequality.