Power or opportunity? Perceived inequality on life satisfaction explained by reduced trust in South Korea

Abstract This paper presents new evidence linking different aspects of perceived inequality (education, employment, law enforcement, income and wealth, power, and gender) to life satisfaction. Using large‐scale national survey data, we examined the relationships between the six aspects of perceived inequality, life satisfaction, and generalized trust among South Koreans ( N = 17,357). Exploratory structural equation modelling identified a two‐factor structure of perceived inequality: Opportunity Inequality (inequalities in education and employment) and Power Inequality (inequalities in income and wealth, law enforcement, power, and gender). Results from mediation analysis suggested that both aspects of inequality negatively predicted life satisfaction via reduced generalized trust. Those processes were consistent regardless of household income. The study underscores the critical impact that public perceptions of (in)equality in various opportunity and power aspects have on well‐being and trust and emphasizes the urgency of government and policy action to address the growing problem of inequality in South Korean society. The findings highlight the urgent need to address disparities and promote social harmony and well‐being in countries facing similar challenges.