Squid Game: A Reflection of Debt and Wealth Inequality

The global sensation, Squid Game, first aired on September 17, 2021 and has amassed a total of 111 million viewers worldwide. The hit television series follows Seong Gi-Hun, a father severely in debt from gambling addictions, accompanied by others suffering similar financial situations to compete in various deadly children’s games for a chance to win a 45.6 billion won prize (approximately 37 million US dollars). The competitors are offered a chance to leave the game, but almost all willingly return for a chance to win the money after realizing their lives are too burdened by financial distress. Though this dystopian show is fiction, the financial crisis that many of the characters face reflect the wealth disparities and debt crisis in South Korea. 

In recent years, household debt in South Korea has steadily risen due to the increases in demand with constant supply. In the second quarter of 2021, household debt grew over 10% compared to the same time the previous year. According to the Bank of Korea, on average, citizens in their 30s “have borrowed more than 260% of their income.” Moreover, rising housing prices and stock market surges have encouraged younger adults to seek more non-traditional sources of income such as stocks or cryptocurrencies (Kim). 

In a research article by the Bloomberg Terminal, economist Justin Jimenez writes, “With economic prospects dwindling [in South Korea] and interest rates slashed to a record low during the pandemic, younger Koreans have taken on even more debt to purchase assets–from property to stocks to cryptocurrencies–betting that speculation is the only route to succeed financially.  That’s making housing even costlier (Scott).” In the past five years, housing costs in South Korea have grown more than 70%. As a result, President of South Korea, Moon Jae-In, has made various attempts to lower housing costs and lessen the wealth gap by “doubl[ing] the real estate tax range to between 1.2 and 6 percent for people who either own three or more homes or own two houses in specific areas rife with speculation (Ferrior).”  

Although Squid Game is specific to South Korea, themes of wealth disparity, household debt, and gambling reflect the issues facing many growing economies today. Squid Game explores different causes and effects of such economic stressors through the various competitors. The question then becomes whether the other governments will intervene or watch from the sidelines, like the VIPS.

Edited by Lola Cleaveland

Works Cited

Scott, Malcolm. (2021, October 12). The Squid Game Economy. Bloomberg. https://www.bloomberg.com/news/newsletters/2021-10-12/what-s-happening-in-the-worl d-economy-the-squid-game-economy

Kim, Victoria. (2021, October 16). The Seedy World of Private Lending in ‘Squid Game’ Is A Real Temptation in South Korea. Los Angeles Times. https://www.latimes.com/world-nation/story/2021-10-16/the-seedy-world-of-private-lending-in-squid-game-is-a-real-temptation-in-todays-south-korea 

Ferrior, Kyle. (2020, July 23). President Moon Hits Another Hurdle in Curbing South Korea’s Housing Market. The Diplomat. https://thediplomat.com/2020/07/president-moon-hits-another-hurdle-in-curbing-south-koreas-housing-market/