South Korea Ranks 28th in OECD for Tax-Welfare Redistribution Effectiveness
South Korea's income redistribution through its tax and welfare systems is among the least effective within the Organisation for Economic Co-operation and Development (OECD), ranking 28th out of 29 member countries. According to OECD income distribution statistics for 2023, South Korea's Gini coefficient improvement rate, which measures the reduction in income inequality after taxes and welfare transfers, stood at 17.6 percent. This figure is approximately half the 29-country average of 34.4 percent, with only Costa Rica ranking lower at 12.1 percent. While South Korea's market income Gini coefficient (before taxes and transfers) was the most equal among surveyed countries at 0.392, its disposable income Gini coefficient (after taxes and transfers) of 0.323 placed it 22nd, indicating a significant drop in ranking due to insufficient redistribution. This trend has worsened over time, with South Korea's position slipping from 23rd out of 26 countries in 2011 to its current standing.
