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The rich have become a lot richer, and the poor have become a lot poorer.
The average monthly income of the bottom 20 percent group was 1.24 million won ($1,100) in the fourth quarter of 2018, down nearly 18 percent from a year earlier, according to Statistics Korea, Thursday.
It dropped 7 percent in the third quarter of last year from a year ago.
Meanwhile, that of the top 20 percent was 9.32 million won, up more than 10 percent from a year before ― a record increase. The group's monthly income was also boosted by about 9 percent in the third quarter.
As a result, the country's income equality reached the worst level for that fiscal quarter since the statistics agency began collecting data 16 years ago.
The reason for the widening gap was the same as the one that explained the third quarter differential.
The lack of jobs for the low-income group worsened inequality, said the state-run agency's Park Sang-young.
Analysts say the worst-ever inequality was the result of government mismanagement in its key income-led growth policy.
It has "killed" jobs in services and small businesses, beset by rapid hikes in the minimum wage.
"A series of policy mishaps has created side effects, hurting jobs in services and the self-employed," said Yun Chang-hyun, an economist at the University of Seoul.
"The government did not really have a clear policy to help the low-income group to begin with."
Also, belated moves by traditional manufacturers to change led to a greater loss of jobs, which also worsened the inequality, Yun added.
The weakening job market has further reduced the disposable incomes of young, single households.
They are usually included in the bottom 20 percent income group.
The country's unemployment rate reached a nine-year high of 4.5 percent in January, amid job cuts in manufacturing, up 0.8 percentage points from the same month last year.
The country created only 19,000 new jobs last month, far fewer than the 334,000 in January 2018.
Finance Minister Hong Nam-ki said at an emergency meeting that his ministry will redraw its policy on wealth distribution as soon as possible to help the low-income group.
"We will work with other ministries to implement a policy aimed at boosting social security and jobs," Hong said at the meeting in Seoul.
