Exploring Social Capital Level in Regions with Large and Increasing Wealth Inequality: Lesson from Seoul, South Korea

Abstract

While wealth inequality is increasing worldwide, social interaction quality among communities is simultaneously decreasing. Although inequality is primarily correlated with the income gap, inequality is also significantly associated with the housing price gap, especially in South Korea. This study explores the correlation between housing price inequality and social interaction levels in Seoul. For this analysis, the housing price Gini coefficient was utilized through the housing transaction price, and social interaction was measured using the Korea Housing Survey. The results of this study indicate that the social interaction level was low in regions with large housing price inequality. Moreover, the social interaction level was low in regions where housing price inequality increased for 10 years. Furthermore, the negative correlation between housing price inequality and social interaction was significant only in the lower-asset class. The fact that inequality negatively influences social interactions only in the low-asset class is another aspect of inequality.