5 Harrowing Real-Life Crises That Prove 'Squid Game' Is More Than Just Fiction

The question, "Is Squid Game based on a true story?" has become one of the most searched queries since the show’s debut, and as of late 2025, the answer remains a complex mix of fiction and chilling reality. While the deadly competition itself—where 456 deeply indebted individuals play children's games for a massive cash prize—is entirely a work of dark fiction, its emotional core and the specific desperation of its characters are deeply rooted in real, violent, and systemic social struggles within South Korea. The creator, Hwang Dong-hyuk, meticulously wove current and historical national crises into the fabric of the story, making the series feel unnervingly authentic and providing a biting critique of modern capitalism.

The global phenomenon is a fictional survival drama, yet its power lies in its unflinching exposure of real-world issues like economic inequality, overwhelming personal debt, and the exploitation of the vulnerable. The creator has been explicit about the specific historical events that served as the foundation for the characters' backstories, turning the dystopian thriller into a powerful social commentary.

The Creator's Truth: Hwang Dong-hyuk's Real-Life Inspirations

Director and writer Hwang Dong-hyuk has repeatedly confirmed that the death games are an invention, but the motivations for the players' participation are tragically real. He conceived the idea over a decade ago when he himself was struggling financially, reading manga like Battle Royale and Liar Game, and reflecting on his own country's economic turmoil.

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His intention was to create a metaphorical story that lays bare South Korea's real-life personal debt and the extreme lengths people are forced to go to survive. The show is a cinematic mirror reflecting the harsh realities of a hyper-competitive society.

The topical authority of Squid Game comes from its direct reference to historical and ongoing national issues, transforming the fictional narrative into a powerful piece of social realism.

5 Real-Life Crises That Fueled the Squid Game Plot

The players in the game are not just randomly desperate; their backstories are meticulously crafted to reference specific, traumatic real-life events in South Korea. These five entities are the true, harrowing inspirations behind the fiction.

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1. The Ssangyong Motor Strike and Gi-hun's Backstory

The most direct link between fiction and reality is the backstory of the main character, Seong Gi-hun (Player 456). In the series, Gi-hun is a laid-off auto worker who participated in a violent labor strike, leading to the death of a fellow worker. This narrative arc was directly inspired by the 2009 Ssangyong Motor strikes.

• The Real Event: In 2009, Ssangyong Motor Company laid off nearly 2,646 workers. The workers staged a 77-day sit-in protest at the factory, which was met with violent police intervention, leading to significant trauma and casualties.
• The Fictional Parallel: Gi-hun's character is a direct reference to the thousands of workers who lost their jobs and faced years of financial and psychological hardship following this and similar corporate restructuring events.

2. South Korea's Overwhelming Household Debt Crisis

The central premise—hundreds of people voluntarily risking their lives for money—is a metaphor for the crushing weight of personal debt in South Korea. The country has one of the highest levels of household debt in the world, a systemic issue that leaves many feeling trapped.

• The Real Crisis: Millions of South Koreans are saddled with unmanageable debt, often from failed business ventures, student loans, or high-interest private loans, leading to desperation that mirrors the players' motivation.
• The Fictional Parallel: Every player, from the North Korean defector Kang Sae-byeok to the financier Cho Sang-woo, represents a different facet of this national debt epidemic, highlighting how the system forces people into impossible choices.

3. The Alleged "Brothers' Home" Facility Rumor

A persistent rumor that has resurfaced, particularly with the announcements about Season 3, is the alleged link between Squid Game and "The Brothers' Home" in Busan. While the show is not a direct adaptation, the rumor highlights a dark chapter in South Korean history that resonates with the show's themes of state-sanctioned violence and exploitation.

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• The Real History: The Brothers' Home was a facility operating from the 1970s to the late 1980s where thousands of homeless, disabled, and political dissidents were forcibly detained, subjected to forced labor, abuse, and even death. It was a place of extreme, state-sanctioned violence.
• The Metaphorical Link: Hwang Dong-hyuk's work, which often deals with deep social critique, is seen by some analysts as a metaphorical commentary on this type of institutionalized violence and the disposable nature of the poor in society.

4. The Legacy of the 1997 IMF Crisis

While not a direct plot point, the lasting economic and social trauma from the 1997 Asian Financial Crisis (often referred to in South Korea as the IMF Crisis) created the environment for the show's desperation. This event led to mass unemployment, bankruptcies, and a fundamental shift in the country's social contract, forcing many into a life of precarity.

• The Real Impact: The crisis shattered the illusion of lifelong employment and security, creating the current hyper-competitive, debt-driven society.
• The Fictional Impact: Characters like Cho Sang-woo, the high-achieving Seoul National University graduate who is ruined by financial fraud, embody the pressure and catastrophic failure that has become common in the post-IMF economy.

5. The Eerie Real-Life Inspiration for the VIPs

The masked, bored, and obscenely wealthy VIPs who watch the games for entertainment are also inspired by real-world figures. Hwang Dong-hyuk revealed that the VIPs, who represent the global 1% and the ultra-rich, were inspired by the actions of political and business leaders who are shielded from the consequences of their actions.

• The Real Inspiration: The creator noted that the VIPs are a commentary on the global elite who view the suffering of the lower classes as a form of entertainment or a distant, abstract problem.
• The Fictional Parallel: Their active, detached, and predatory role in later seasons, particularly their involvement in the game's darkest aspects, is a satirical critique of the powerful who are never held accountable for the economic systems they exploit.

Fiction as a Mirror: Why the Story Feels So Real

The reason Squid Game resonates so deeply across cultures is that the "true story" is not in the games themselves, but in the universal struggle against systemic poverty and inequality. The show's genius lies in its ability to take familiar, innocent children's games—like Red Light, Green Light or Tug-of-War—and turn them into deadly contests, symbolizing how the simple act of living and participating in a capitalist society has become a life-or-death struggle for the poor.

The series is a powerful allegory for the modern debt crisis, where the stakes are figuratively (and sometimes literally, in cases of suicide due to debt) life and death. By grounding the fictional horror in documented historical violence and economic despair, Hwang Dong-hyuk successfully created a piece of entertainment that functions as a devastating social commentary. While you won't find a file on a government server detailing a secret death game, the true story of Squid Game is the ongoing, quiet desperation of millions worldwide.