Young South Koreans living alone face a poverty rate over three times that of multiperson households with young members, despite having a significantly higher employment rate, according to a report by the Korea Economic Research Institute.
The report, released in October, found that the poverty rate among single-person households headed by people aged 15 to 29 stood at 29.7 percent, compared with 9.8 percent among multiperson households with at least one member in the same age group.
The institute attributed the higher poverty rate among young adults living alone partly to their relatively low earnings in the early stages of their careers. Those living in multiperson households, by contrast, may benefit from their combined income with other household members, keeping their poverty rates lower.
The findings were based on data from the 2024 Korean Labor and Income Panel Study, which surveyed 13,699 individuals, 18.6 percent of whom were aged 15 to 29.
Living with others, less likely to work
The institute highlighted a contrasting trend in employment between the two groups.
Among young adults living alone, 89.7 percent were employed, compared with 52.5 percent of those living with others — a gap of 37.2 percentage points.
Even after controlling for factors such as age, educational background, vocational training and location, young adults living alone were 5.4 percentage points more likely to be employed than their counterparts in multiperson households.
The institute suggested that young people living independently may face greater pressure to earn an income to cover living expenses. Conversely, securing employment may itself be a factor enabling them to move out of their family homes.
Those living with their families, meanwhile, may face less immediate financial pressure, as they can rely on household income and shared living arrangements. This could allow them to delay entering the labor market, making them more likely to remain economically inactive, it added.
Different needs, different policies
Based on these findings, the institute called for policies that take into account the different economic circumstances of young adults, warning that support measures focused primarily on poverty rates could overlook those living with their parents who are struggling to enter the labor market.
"Numerous studies have pointed out that delayed employment or an economic downturn immediately after graduation can have lasting effects on young people's lives," the report said, referring to the long-term consequences of difficulties experienced during the early stages of entering the labor market.
The institute said that policies should encourage young adults living with their parents to seek employment and enter the labor market, rather than relying on their families' financial resources.
For those living independently, it proposed measures such as housing vouchers, employment-linked living subsidies and expanded access to the Earned Income Tax Credit to help keep them out of poverty.
forestjs@heraldcorp.com
