S. Korea ranks near bottom of OECD for income redistribution

SEOUL, September 20 (Yonhap) - South Korea's ranking among OECD member nations for income redistribution through taxes and welfare systems slipped to near the bottom in 2023, according to latest data. The Yonhap News Agency analysis revealed that South Korea's improvement rate in the Gini coefficient - a measure comparing income equality before and after taxes and transfers - was 17.6 percent, placing it 28th out of 29 OECD countries.

Only Costa Rica ranked lower, at 12.1 percent. The findings come amid a strengthening South Korean economy driven by semiconductor exports, while concerns persist that economic polarization could deepen. The Gini coefficient gauges income inequality, with zero signifying perfect equality and one representing perfect inequality. South Korea's market-income Gini coefficient of 0.392 was the lowest among the 29 OECD countries, indicating the highest level of equality.

However, its disposable-income Gini coefficient of 0.323, after accounting for taxes, pensions and benefits, left the country ranked 22nd, indicating relatively weak income redistribution through these measures. Kim Kwang-seok, a researcher at the Institute for Korean Economy & Industry, noted that South Korea's income redistribution is relatively weak compared to other OECD countries and called for stronger government support for low-income households.