This study examines why perceived inequality rises despite improvements in income distribution indicators, attributing this trend to the worsening distribution of non-income resources. Using data from Waves 2 through 17 of the Korea Welfare Panel Study, we find that individuals largely fail to perceive these improvements, likely due to rising cost-of-living burdens and persistent asset inequality. In particular, increasing asset inequality may be a key factor explaining why distributional gains go unfelt; for low-income groups, the issue may lie less with their income levels than with the limited resources remaining after covering basic necessities. These findings suggest the need for policy interventions that enhance household liquidity and expand opportunities for asset accumulation.