South Korea ranks near bottom of OECD on income redistribution
South Korea placed 28th out of 29 OECD members in income redistribution through taxes and welfare, with a 17.6% improvement in its Gini coefficient in 2023.
According to recent OECD figures, South Korea ranks near the bottom of the organization’s members for income redistribution, landing 28th out of 29 countries with available data. The nation’s redistribution improvement rate was 17.6% in 2023, markedly lower than the OECD average of 34.4%. The Gini coefficient for market income stood at 0.392, the lowest among the 29 members, indicating high pre-tax equality, but after taxes and transfers the disposable-income Gini rose to 0.323, placing South Korea 22nd.
Only Costa Rica performed worse, with a 12.1% improvement rate. The report comes as South Korea experiences an expansionary phase driven by robust semiconductor exports, raising worries that economic polarization could become entrenched. Kim Kwang-seok of the Institute for Korean Economy & Industry highlighted the weak redistribution and called for greater government assistance to low-income families.
Why it matters
The data reveal that South Korea's tax and welfare system does little to curb inequality despite strong economic growth.
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