OECD Says 8 in 10 South Koreans in Their 20s Live with Parents

The organization Advises Korea’s Economic Gains to Be Translated into Life-quality Improvement

​A still image from the film Marathon.​

South Korea has reached advanced economy status in terms of economic size and indicators such as education and health, but the quality of life perceived by its citizens remains relatively weak, according to a recent assessment by the Organisation for Economic Co-operation and Development (OECD). While per capita gross domestic product (GDP), household assets, life expectancy and education levels are at or above the OECD average, the report found that structural weaknesses persist in so-called “well-being indicators,” including youth independence, mental health, social isolation and gender inequality.

The OECD made the assessment in its recent report titled Inclusive and Sustainable Well-being in South Korea, which evaluates the country’s achievements over 30 years since joining the organization.

The OECD said South Korea has undergone an exceptional socioeconomic transformation in a relatively short period since its accession in 1996. In fact, the country’s total GDP nearly tripled between 1996 and 2024, while GDP per capita more than doubled to reach the OECD average.

Material living standards have also improved significantly. According to the OECD, although the average household income in South Korea is still lower than the OECD average, the gap with the average was halved between 2004 and 2022. Household assets have consistently exceeded the OECD average since 2013.

Income inequality has also eased since 2011 and has declined to a level slightly above the OECD average. The relative poverty rate has steadily decreased since 2011, with the child poverty rate particularly falling from above the OECD average in 2011 to among the lower levels in member countries by 2022.

South Korea’s performance is even more pronounced in health, safety and education indicators. As of 2022, the life expectancy of a child born in South Korea stood at around 83 years, marking an increase of more than eight years from 1996 and about two years higher than the OECD average. The homicide rate has remained at the lowest level among OECD member countries for the past 30 years, while traffic accident fatalities have fallen by 80 percent since 1996. The secondary and tertiary education completion rate for those aged 25 to 34 was evaluated as the highest in the OECD, and South Korean students consistently maintain top rankings in international assessments of mathematics, reading and science.

However, the problem is that these achievements have not sufficiently translated into subjective well-being, social connections or a sense of future security, the OECD said. It identified delayed economic independence among young people, high suicide rates and mental health risks, social isolation among the elderly and gender inequality as key challenges undermining quality of life in South Korea.

One of the most striking indicators is youth independence. As of 2020, 81 percent of South Koreans aged 20 to 29 were living with their parents, little changed from 79 percent in 2006 and the highest among OECD members. The OECD average stood at 50 percent as of 2022. The organization said young Koreans face difficulties securing stable jobs, income and housing as they transition from education to employment and independent adulthood.

Mental health indicators are also weak. The OECD noted that South Korea has the highest suicide rate among member countries and highlighted rising suicide rates among children and adolescents as a particular concern.

Social isolation among young people is also deepening. A government survey in 2024 found that 5.2 percent of people aged 19 to 34 were classified as experiencing “severe social withdrawal,” more than double the level recorded in a similar survey in 2022. Among them, 32.8 percent cited difficulties in finding jobs as the main reason, while 11.1 percent pointed to challenges in interpersonal relationships and 9.7 percent to dropping out of school. The OECD also cited research results showing that the socioeconomic cost of youth isolation reaches at least 7 trillion won, or about $4.75 billion, per year.

Social support networks among older adults were also found to be weak. Among South Koreans aged 70 and older, only 61 percent of men and 65 percent of women said they had someone to rely on in times of need, compared with OECD averages of 89 percent and 87 percent, respectively. This means that while South Koreans are living longer, their support networks in times of crisis fall significantly short of those in other advanced economies. The OECD specifically noted that poverty, low health awareness, and loneliness among the elderly could be linked to mental health risks.

Gender inequality also remains a structural weakness. The OECD said South Korea lags behind the OECD average in female labor force participation, the gender wage gap and women’s representation in economic and political decision-making. The share of women who have experienced violence from a spouse or partner stood at around 9 percent as of 2018, more than double the OECD average of 4 percent.

The OECD emphasized that the South Korean government should shift its focus beyond boosting growth alone and place greater emphasis on translating economic gains into improvements in quality of life. It recommended policy measures including support for youth employment, housing and asset building, comprehensive mental health management across all stages of life, strengthening social networks for the elderly and fostering a more gender-equal labor market.

Jung Suk-yee