The far-right Alternative for Germany (AfD) party secured 43.8% of the vote in Saxony-Anhalt, marking a significant victory. This raises the possibility of a far-right party governing in Germany for the first time since the Nazi era.
Italy's Brothers of Italy party continues to hold power, setting a post-war record for longevity. Additionally, the National Rally in France has seen a surge in seats, the Freedom Party in Austria has become the leading party, and the Reform Party in the UK is gaining momentum, indicating a widespread rise of far-right sentiment across Europe.
While anti-immigrant sentiment has intensified, it is not the sole factor. This trend appears to be a global phenomenon coinciding with the decline of the free trade era. A sentiment of prioritizing national interests through tariffs and border controls is spreading across the continent. Before questioning 'why the far-right?', it is essential to accept that this is becoming the new normal.
David Autor, an economist at MIT, argues that the 'China Shock' has had detrimental effects at the national level. Regions heavily exposed to competition from Chinese imports have higher unemployment rates and lower wage growth. In the UK, there was overwhelming support for Brexit, while in the U.S., fervent Trump supporters are concentrated in similar areas. In Italy, support for far-right parties has surged in regions affected by the textile industry's decline.
Frustration has taken root in areas where jobs have been lost, and this anger often targets immigrants as convenient scapegoats. Germany is no exception. The median net worth of households in the former East Germany is only a quarter of that in the West, and Saxony-Anhalt's unemployment rate exceeds the national average. This indicates that the issue is not solely ideological; the widening wealth gap has become a new backdrop for the rise of far-right politics.
South Korea is not immune to this trend. The youth employment rate for those aged 15 to 29 has dropped by 2.4 percentage points to 43.8% over the past year, while the youth unemployment rate has risen to 7.2%. The number of small business closures has surpassed one million annually, reaching a record high. The income disparity ratio has increased to 6.59 times, the highest since 2020. The Gini coefficient for net assets has worsened from 0.584 in 2017 to 0.625 in 2025.
The proportion of households in their 20s and 30s with both net assets and income in the bottom 20% has nearly doubled from 7.9% to 15.2% over five years. Jobs have disappeared, and intergenerational wealth gaps are solidifying.
However, South Korea's situation differs from that of the U.S. and Europe. Even if the world closes its doors with tariffs and borders, South Korea cannot follow the same path. Choosing protectionism in an export-driven economy with one of the highest trade dependencies would be nearly self-destructive. Therefore, the country must navigate a more challenging path.
As closing off to right-wing extremism is not feasible, South Korea must maintain openness while ensuring that benefits are widely circulated. The surplus tax revenue generated from large export companies, such as those in the semiconductor sector, should be wisely utilized to address polarization. Reforms aimed at narrowing the wage gap between large and small businesses could be a starting point for helping young people build assets.
The era of chasing growth at any cost is over. Countries that cannot close their doors must now plan how to share the benefits within. Otherwise, there is a risk that forces representing that anger will emerge in new forms.
* This article has been translated by AI.
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