{"content_id":"gk8rsjtxrf","slug":"income-redistribution-korea-2023-oecd-ranking","locale":"en","schema_type":"Article","category":"report","category_name":"Report","title":"South Korea Income Redistribution: 28th in 2023","summary":"South Korea's Gini coefficient improvement rate was 17.6% in 2023, ranking 28th among 29 comparable OECD countries. This figure measures the redistributive effect of taxes and cash benefits and should be distinguished from the level of inequality or overall welfare performance.","sponsorship_disclosure":null,"affiliate_disclosure":null,"commerce_disclosure":null,"author":{"name":"Injoys Editorial Team","url":"https://injoys.com/ko/about"},"key_points":["South Korea's Gini coefficient improvement rate was 17.6% in 2023, ranking 28th among the 29 OECD countries compared.","South Korea's Gini coefficient fell from 0.392 based on market income to 0.323 based on disposable income in 2023.","The Gini coefficient improvement rate for South Koreans aged 66 and over was 29.6% in 2023.","The Gini coefficient improvement rate does not mean an individual's income growth rate or tax refund rate.","Redistribution measures focused on cash income do not directly capture the value of healthcare and education services or wealth disparities."],"content_markdown":"South Korea ranked 28th among 29 comparable OECD countries for the redistributive effect on income in 2023. Its Gini coefficient improvement rate was **17.6%**. This is the percentage by which taxes and cash benefits reduced income inequality.\n\nThe international comparison figures are based on 2023 income in OECD income distribution statistics reported on September 20, 2026.\n\n## What income redistribution and the Gini coefficient mean\n\nIncome redistribution is the process by which taxes, welfare benefits, and other measures change the distribution of income. This comparison uses Gini coefficients for market income and disposable income. The Gini coefficient measures the degree of income inequality.\n\n| Term | Meaning | How to interpret it |\n| --- | --- | --- |\n| Market income | Income before redistribution, including income from work, business, and property | It does not compare wages alone. |\n| Disposable income | Income after accounting for cash benefits, taxes, social insurance contributions, and other items | It means income available for households to use. |\n| Gini coefficient | The degree of inequality in the income distribution | Closer to 0 means more equality; closer to 1 means more inequality. |\n| Gini coefficient improvement rate | The decrease as a percentage of the Gini coefficient before redistribution | A higher rate means a larger percentage reduction in income inequality. |\n\nThe OECD compares income distributions using household income adjusted for household size. That is because living conditions differ by household size even at the same income level. These statistics are not calculated from individual pay slips alone. The income categories are set out in the [OECD income distribution statistics guidelines](https://www.oecd.org/content/dam/oecd/en/data/datasets/income-and-wealth-distribution-databases/idd-tor-2012-onwards.pdf).\n\n## Comparing the redistributive effect in South Korea and other countries\n\nSouth Korea’s improvement rate was below the 2023 average of 34.4% for the countries compared. Costa Rica was the only country with a lower rate. The table ranks countries from highest to lowest improvement rate.\n\n| Country | 2023 market income Gini coefficient | 2023 disposable income Gini coefficient | Improvement rate | Rank among 29 countries |\n| --- | ---: | ---: | ---: | ---: |\n| Slovakia | 0.413 | 0.213 | 48.3% | 1st |\n| Belgium | 0.486 | 0.254 | 47.7% | 2nd |\n| Finland | 0.509 | 0.269 | 47.2% | 3rd |\n| France | 0.517 | 0.299 | 42.2% | 6th |\n| South Korea | 0.392 | 0.323 | 17.6% | 28th |\n| Costa Rica | 0.535 | 0.470 | 12.1% | 29th |\n\nSouth Korea’s market income Gini coefficient was the lowest in this group. Its disposable income Gini coefficient was the 22nd lowest. Inequality fell in South Korea too, but the reduction was greater in other countries. Country figures are available in [Yonhap News Agency’s OECD statistics comparison table](https://www.yna.co.kr/view/AKR20260919056500002).\n\nThe drop in rank should therefore not be read as an absolute worsening of inequality. South Korea’s Gini coefficient itself fell from 0.392 to 0.323. Country rankings before and after redistribution and changes in the indicator convey different information.\n\n## Example calculation of the 17.6% improvement rate\n\nSouth Korea’s 2023 improvement rate is calculated by dividing the decrease in the Gini coefficient by its starting value. The market income Gini coefficient was 0.392. The disposable income Gini coefficient was 0.323.\n\n1. Calculate the decrease. 0.392 - 0.323 = 0.069.\n2. Divide the decrease by the starting value. 0.069 ÷ 0.392.\n3. Convert it to a percentage. 0.069 ÷ 0.392 × 100 ≈ 17.6%.\n\nThe Gini coefficient decrease of 0.069 and the improvement rate of 17.6% should not be confused. The improvement rate shows how much the coefficient fell relative to its starting point. It does not mean an individual’s income rose by that amount.\n\nA pay-gap example can also help explain the direction of redistribution. The amounts below are hypothetical, not actual tax calculations. This is an illustrative example separate from Yonhap News Agency’s country-level Gini coefficient calculations.\n\n| Category | Higher-income person | Lower-income person | Income gap between the two |\n| --- | ---: | ---: | ---: |\n| Before taxes and support | 5 million won a month | 2 million won a month | 3 million won a month |\n| After taxes and support | 4.5 million won a month | 2.5 million won a month | 2 million won a month |\n\nIn this example, the income gap between the two people fell by 1 million won a month. The actual Gini coefficient is calculated from the income distribution of the entire population. The difference between two people’s incomes cannot be used to calculate South Korea’s improvement rate.\n\n## Why the rank is low despite improvement over the past\n\nA rise in the improvement rate and a rise in the international ranking are separate matters. South Korea’s improvement rate rose from 11.6% in 2015 to 19.0% in 2020. It was 17.6% in 2023. It has not risen continuously.\n\nIf other countries have higher improvement rates, South Korea can remain near the bottom even when its own figure improves. The countries included in the comparison may also change from year to year. Simply lining up rankings from different years can give a misleading impression of the size of the change.\n\nThe OECD revised South Korea’s historical data in its June 2026 update. The revisions cover 2011 through 2022. Long-term trends are more accurately compared using the same version of the data. The revision history appears in the [OECD income distribution statistics update information](https://www.oecd.org/en/data/datasets/income-and-wealth-distribution-database.html).\n\n## Redistribution among older adults and the pension system\n\nThe redistributive effect for older adults in South Korea is greater than for all ages combined, but low in international comparisons. Here, older adults means people **aged at least 66**. This should not be confused with other commonly used age thresholds for older people.\n\n| 2023 comparison item | South Korea, all ages | South Korea, aged at least 66 |\n| --- | ---: | ---: |\n| Market income Gini coefficient | 0.392 | 0.540 |\n| Disposable income Gini coefficient | 0.323 | 0.380 |\n| Gini coefficient improvement rate | 17.6% | 29.6% |\n| Improvement-rate rank among 29 countries compared | 28th | 28th |\n\nAs income from work falls in retirement, public pensions play a larger role. South Korea’s improvement rate for older adults was below the 2023 average of 57.1% for the countries compared. In the same year, the disposable income Gini coefficient for older adults in South Korea was 0.380. That indicates greater inequality than the figure of 0.323 for all ages. The comparison results are available in [coverage of the 2023 OECD statistics by age](https://www.ebn.co.kr/news/articleView.html?idxno=1724989).\n\nYears of pension contributions offer a clue to this difference. The OECD says South Korea’s pension system is still maturing. The current older generation includes people who contributed to pensions for only a short time. The lengthening contribution periods of newly retiring generations should also be considered. The [OECD’s 2025 report on pensions in South Korea](https://www.oecd.org/en/publications/pensions-at-a-glance-2025-country-notes_8a53ef12-en/korea-republic-of_5cd52913-en.html) explains this background.\n\nEven if market income is distributed equally among older adults, that does not mean they have enough to live on in retirement. Income earned by continuing to work after retirement can affect the indicator. How much income people retain after they stop working must be assessed separately.\n\n## Welfare and assets not captured by the cash income indicator\n\nThis indicator alone cannot assess the performance of the entire welfare system. It focuses on the distribution of household cash income. Medical and education services and asset holdings must be considered separately.\n\n| Category | Treatment in this comparison | Information to check alongside it |\n| --- | --- | --- |\n| Public pensions and cash allowances | Included in cash income. | Coverage and benefit levels |\n| Direct taxes and social insurance contributions | Included in the calculation of disposable income. | Burden by income group |\n| In-kind services such as health care and education | The value of services is not added directly to income. | Service use and out-of-pocket costs |\n| Consumption taxes | Not deducted directly under this definition of disposable income. | Tax burden from consumption |\n| Housing and financial asset holdings | Not measured directly by the income Gini coefficient. | Net asset distribution and debt |\n\nThe OECD’s definition of disposable income treats in-kind services and consumption taxes separately. There is therefore a basis for interpreting the cash redistribution effect as weak. Extending that ranking to welfare as a whole goes beyond what the indicator measures. The household income definition in [OECD Society at a Glance 2024](https://www.oecd.org/content/dam/oecd/en/publications/reports/2024/06/society-at-a-glance-2024_08001b73/918d8db3-en.pdf) explains this distinction.\n\n## Common misunderstandings about the income redistribution ranking\n\nThe figure of 28th must be read alongside the comparison group and what is being measured. This result compares 29 countries with data for 2023. It is not a ranking of all OECD member countries for the same year.\n\n- 28th is the rank for the redistribution improvement rate. It is not the rank for disposable income inequality.\n- 17.6% is the percentage decrease in the Gini coefficient. It is not a tax rate or refund rate.\n- A low market income Gini coefficient does not necessarily mean a high standard of living. The absolute level of income is separate information.\n- The Gini coefficient and the poverty rate are different indicators. The poverty rate is the percentage of the population below a specified income threshold.\n- This comparison alone cannot separate the contributions of taxes and welfare benefits. Deciding which policies to change requires further analysis.\n\nTo check cross-country rankings again, the income years must match. All ages and older adults must also be distinguished. Market income and disposable income Gini coefficients can be checked together in the OECD Data Explorer.","content_html":"\u003cp\u003eSouth Korea ranked 28th among 29 comparable OECD countries for the redistributive effect on income in 2023. Its Gini coefficient improvement rate was \u003cstrong\u003e17.6%\u003c/strong\u003e. This is the percentage by which taxes and cash benefits reduced income inequality.\u003c/p\u003e\n\u003cp\u003eThe international comparison figures are based on 2023 income in OECD income distribution statistics reported on September 20, 2026.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#what-income-redistribution-and-the-gini-coefficient-mean\" class=\"anchor\" id=\"what-income-redistribution-and-the-gini-coefficient-mean\"\u003e\u003c/a\u003eWhat income redistribution and the Gini coefficient mean\u003c/h2\u003e\n\u003cp\u003eIncome redistribution is the process by which taxes, welfare benefits, and other measures change the distribution of income. This comparison uses Gini coefficients for market income and disposable income. The Gini coefficient measures the degree of income inequality.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eTerm\u003c/th\u003e\n\u003cth\u003eMeaning\u003c/th\u003e\n\u003cth\u003eHow to interpret it\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Term\"\u003eMarket income\u003c/td\u003e\n\u003ctd data-label=\"Meaning\"\u003eIncome before redistribution, including income from work, business, and property\u003c/td\u003e\n\u003ctd data-label=\"How to interpret it\"\u003eIt does not compare wages alone.\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Term\"\u003eDisposable income\u003c/td\u003e\n\u003ctd data-label=\"Meaning\"\u003eIncome after accounting for cash benefits, taxes, social insurance contributions, and other items\u003c/td\u003e\n\u003ctd data-label=\"How to interpret it\"\u003eIt means income available for households to use.\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Term\"\u003eGini coefficient\u003c/td\u003e\n\u003ctd data-label=\"Meaning\"\u003eThe degree of inequality in the income distribution\u003c/td\u003e\n\u003ctd data-label=\"How to interpret it\"\u003eCloser to 0 means more equality; closer to 1 means more inequality.\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Term\"\u003eGini coefficient improvement rate\u003c/td\u003e\n\u003ctd data-label=\"Meaning\"\u003eThe decrease as a percentage of the Gini coefficient before redistribution\u003c/td\u003e\n\u003ctd data-label=\"How to interpret it\"\u003eA higher rate means a larger percentage reduction in income inequality.\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eThe OECD compares income distributions using household income adjusted for household size. That is because living conditions differ by household size even at the same income level. These statistics are not calculated from individual pay slips alone. The income categories are set out in the \u003ca href=\"https://www.oecd.org/content/dam/oecd/en/data/datasets/income-and-wealth-distribution-databases/idd-tor-2012-onwards.pdf\"\u003eOECD income distribution statistics guidelines\u003c/a\u003e.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#comparing-the-redistributive-effect-in-south-korea-and-other-countries\" class=\"anchor\" id=\"comparing-the-redistributive-effect-in-south-korea-and-other-countries\"\u003e\u003c/a\u003eComparing the redistributive effect in South Korea and other countries\u003c/h2\u003e\n\u003cp\u003eSouth Korea’s improvement rate was below the 2023 average of 34.4% for the countries compared. Costa Rica was the only country with a lower rate. The table ranks countries from highest to lowest improvement rate.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eCountry\u003c/th\u003e\n\u003cth\u003e2023 market income Gini coefficient\u003c/th\u003e\n\u003cth\u003e2023 disposable income Gini coefficient\u003c/th\u003e\n\u003cth\u003eImprovement rate\u003c/th\u003e\n\u003cth\u003eRank among 29 countries\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Country\"\u003eSlovakia\u003c/td\u003e\n\u003ctd data-label=\"2023 market income Gini coefficient\"\u003e0.413\u003c/td\u003e\n\u003ctd data-label=\"2023 disposable income Gini coefficient\"\u003e0.213\u003c/td\u003e\n\u003ctd data-label=\"Improvement rate\"\u003e48.3%\u003c/td\u003e\n\u003ctd data-label=\"Rank among 29 countries\"\u003e1st\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Country\"\u003eBelgium\u003c/td\u003e\n\u003ctd data-label=\"2023 market income Gini coefficient\"\u003e0.486\u003c/td\u003e\n\u003ctd data-label=\"2023 disposable income Gini coefficient\"\u003e0.254\u003c/td\u003e\n\u003ctd data-label=\"Improvement rate\"\u003e47.7%\u003c/td\u003e\n\u003ctd data-label=\"Rank among 29 countries\"\u003e2nd\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Country\"\u003eFinland\u003c/td\u003e\n\u003ctd data-label=\"2023 market income Gini coefficient\"\u003e0.509\u003c/td\u003e\n\u003ctd data-label=\"2023 disposable income Gini coefficient\"\u003e0.269\u003c/td\u003e\n\u003ctd data-label=\"Improvement rate\"\u003e47.2%\u003c/td\u003e\n\u003ctd data-label=\"Rank among 29 countries\"\u003e3rd\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Country\"\u003eFrance\u003c/td\u003e\n\u003ctd data-label=\"2023 market income Gini coefficient\"\u003e0.517\u003c/td\u003e\n\u003ctd data-label=\"2023 disposable income Gini coefficient\"\u003e0.299\u003c/td\u003e\n\u003ctd data-label=\"Improvement rate\"\u003e42.2%\u003c/td\u003e\n\u003ctd data-label=\"Rank among 29 countries\"\u003e6th\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Country\"\u003eSouth Korea\u003c/td\u003e\n\u003ctd data-label=\"2023 market income Gini coefficient\"\u003e0.392\u003c/td\u003e\n\u003ctd data-label=\"2023 disposable income Gini coefficient\"\u003e0.323\u003c/td\u003e\n\u003ctd data-label=\"Improvement rate\"\u003e17.6%\u003c/td\u003e\n\u003ctd data-label=\"Rank among 29 countries\"\u003e28th\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Country\"\u003eCosta Rica\u003c/td\u003e\n\u003ctd data-label=\"2023 market income Gini coefficient\"\u003e0.535\u003c/td\u003e\n\u003ctd data-label=\"2023 disposable income Gini coefficient\"\u003e0.470\u003c/td\u003e\n\u003ctd data-label=\"Improvement rate\"\u003e12.1%\u003c/td\u003e\n\u003ctd data-label=\"Rank among 29 countries\"\u003e29th\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eSouth Korea’s market income Gini coefficient was the lowest in this group. Its disposable income Gini coefficient was the 22nd lowest. Inequality fell in South Korea too, but the reduction was greater in other countries. Country figures are available in \u003ca href=\"https://www.yna.co.kr/view/AKR20260919056500002\"\u003eYonhap News Agency’s OECD statistics comparison table\u003c/a\u003e.\u003c/p\u003e\n\u003cp\u003eThe drop in rank should therefore not be read as an absolute worsening of inequality. South Korea’s Gini coefficient itself fell from 0.392 to 0.323. Country rankings before and after redistribution and changes in the indicator convey different information.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#example-calculation-of-the-176-improvement-rate\" class=\"anchor\" id=\"example-calculation-of-the-176-improvement-rate\"\u003e\u003c/a\u003eExample calculation of the 17.6% improvement rate\u003c/h2\u003e\n\u003cp\u003eSouth Korea’s 2023 improvement rate is calculated by dividing the decrease in the Gini coefficient by its starting value. The market income Gini coefficient was 0.392. The disposable income Gini coefficient was 0.323.\u003c/p\u003e\n\u003col\u003e\n\u003cli\u003eCalculate the decrease. 0.392 - 0.323 = 0.069.\u003c/li\u003e\n\u003cli\u003eDivide the decrease by the starting value. 0.069 ÷ 0.392.\u003c/li\u003e\n\u003cli\u003eConvert it to a percentage. 0.069 ÷ 0.392 × 100 ≈ 17.6%.\u003c/li\u003e\n\u003c/ol\u003e\n\u003cp\u003eThe Gini coefficient decrease of 0.069 and the improvement rate of 17.6% should not be confused. The improvement rate shows how much the coefficient fell relative to its starting point. It does not mean an individual’s income rose by that amount.\u003c/p\u003e\n\u003cp\u003eA pay-gap example can also help explain the direction of redistribution. The amounts below are hypothetical, not actual tax calculations. This is an illustrative example separate from Yonhap News Agency’s country-level Gini coefficient calculations.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eCategory\u003c/th\u003e\n\u003cth\u003eHigher-income person\u003c/th\u003e\n\u003cth\u003eLower-income person\u003c/th\u003e\n\u003cth\u003eIncome gap between the two\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eBefore taxes and support\u003c/td\u003e\n\u003ctd data-label=\"Higher-income person\"\u003e5 million won a month\u003c/td\u003e\n\u003ctd data-label=\"Lower-income person\"\u003e2 million won a month\u003c/td\u003e\n\u003ctd data-label=\"Income gap between the two\"\u003e3 million won a month\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eAfter taxes and support\u003c/td\u003e\n\u003ctd data-label=\"Higher-income person\"\u003e4.5 million won a month\u003c/td\u003e\n\u003ctd data-label=\"Lower-income person\"\u003e2.5 million won a month\u003c/td\u003e\n\u003ctd data-label=\"Income gap between the two\"\u003e2 million won a month\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eIn this example, the income gap between the two people fell by 1 million won a month. The actual Gini coefficient is calculated from the income distribution of the entire population. The difference between two people’s incomes cannot be used to calculate South Korea’s improvement rate.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#why-the-rank-is-low-despite-improvement-over-the-past\" class=\"anchor\" id=\"why-the-rank-is-low-despite-improvement-over-the-past\"\u003e\u003c/a\u003eWhy the rank is low despite improvement over the past\u003c/h2\u003e\n\u003cp\u003eA rise in the improvement rate and a rise in the international ranking are separate matters. South Korea’s improvement rate rose from 11.6% in 2015 to 19.0% in 2020. It was 17.6% in 2023. It has not risen continuously.\u003c/p\u003e\n\u003cp\u003eIf other countries have higher improvement rates, South Korea can remain near the bottom even when its own figure improves. The countries included in the comparison may also change from year to year. Simply lining up rankings from different years can give a misleading impression of the size of the change.\u003c/p\u003e\n\u003cp\u003eThe OECD revised South Korea’s historical data in its June 2026 update. The revisions cover 2011 through 2022. Long-term trends are more accurately compared using the same version of the data. The revision history appears in the \u003ca href=\"https://www.oecd.org/en/data/datasets/income-and-wealth-distribution-database.html\"\u003eOECD income distribution statistics update information\u003c/a\u003e.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#redistribution-among-older-adults-and-the-pension-system\" class=\"anchor\" id=\"redistribution-among-older-adults-and-the-pension-system\"\u003e\u003c/a\u003eRedistribution among older adults and the pension system\u003c/h2\u003e\n\u003cp\u003eThe redistributive effect for older adults in South Korea is greater than for all ages combined, but low in international comparisons. Here, older adults means people \u003cstrong\u003eaged at least 66\u003c/strong\u003e. This should not be confused with other commonly used age thresholds for older people.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003e2023 comparison item\u003c/th\u003e\n\u003cth\u003eSouth Korea, all ages\u003c/th\u003e\n\u003cth\u003eSouth Korea, aged at least 66\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"2023 comparison item\"\u003eMarket income Gini coefficient\u003c/td\u003e\n\u003ctd data-label=\"South Korea, all ages\"\u003e0.392\u003c/td\u003e\n\u003ctd data-label=\"South Korea, aged at least 66\"\u003e0.540\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"2023 comparison item\"\u003eDisposable income Gini coefficient\u003c/td\u003e\n\u003ctd data-label=\"South Korea, all ages\"\u003e0.323\u003c/td\u003e\n\u003ctd data-label=\"South Korea, aged at least 66\"\u003e0.380\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"2023 comparison item\"\u003eGini coefficient improvement rate\u003c/td\u003e\n\u003ctd data-label=\"South Korea, all ages\"\u003e17.6%\u003c/td\u003e\n\u003ctd data-label=\"South Korea, aged at least 66\"\u003e29.6%\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"2023 comparison item\"\u003eImprovement-rate rank among 29 countries compared\u003c/td\u003e\n\u003ctd data-label=\"South Korea, all ages\"\u003e28th\u003c/td\u003e\n\u003ctd data-label=\"South Korea, aged at least 66\"\u003e28th\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eAs income from work falls in retirement, public pensions play a larger role. South Korea’s improvement rate for older adults was below the 2023 average of 57.1% for the countries compared. In the same year, the disposable income Gini coefficient for older adults in South Korea was 0.380. That indicates greater inequality than the figure of 0.323 for all ages. The comparison results are available in \u003ca href=\"https://www.ebn.co.kr/news/articleView.html?idxno=1724989\"\u003ecoverage of the 2023 OECD statistics by age\u003c/a\u003e.\u003c/p\u003e\n\u003cp\u003eYears of pension contributions offer a clue to this difference. The OECD says South Korea’s pension system is still maturing. The current older generation includes people who contributed to pensions for only a short time. The lengthening contribution periods of newly retiring generations should also be considered. The \u003ca href=\"https://www.oecd.org/en/publications/pensions-at-a-glance-2025-country-notes_8a53ef12-en/korea-republic-of_5cd52913-en.html\"\u003eOECD’s 2025 report on pensions in South Korea\u003c/a\u003e explains this background.\u003c/p\u003e\n\u003cp\u003eEven if market income is distributed equally among older adults, that does not mean they have enough to live on in retirement. Income earned by continuing to work after retirement can affect the indicator. How much income people retain after they stop working must be assessed separately.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#welfare-and-assets-not-captured-by-the-cash-income-indicator\" class=\"anchor\" id=\"welfare-and-assets-not-captured-by-the-cash-income-indicator\"\u003e\u003c/a\u003eWelfare and assets not captured by the cash income indicator\u003c/h2\u003e\n\u003cp\u003eThis indicator alone cannot assess the performance of the entire welfare system. It focuses on the distribution of household cash income. Medical and education services and asset holdings must be considered separately.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eCategory\u003c/th\u003e\n\u003cth\u003eTreatment in this comparison\u003c/th\u003e\n\u003cth\u003eInformation to check alongside it\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003ePublic pensions and cash allowances\u003c/td\u003e\n\u003ctd data-label=\"Treatment in this comparison\"\u003eIncluded in cash income.\u003c/td\u003e\n\u003ctd data-label=\"Information to check alongside it\"\u003eCoverage and benefit levels\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eDirect taxes and social insurance contributions\u003c/td\u003e\n\u003ctd data-label=\"Treatment in this comparison\"\u003eIncluded in the calculation of disposable income.\u003c/td\u003e\n\u003ctd data-label=\"Information to check alongside it\"\u003eBurden by income group\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eIn-kind services such as health care and education\u003c/td\u003e\n\u003ctd data-label=\"Treatment in this comparison\"\u003eThe value of services is not added directly to income.\u003c/td\u003e\n\u003ctd data-label=\"Information to check alongside it\"\u003eService use and out-of-pocket costs\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eConsumption taxes\u003c/td\u003e\n\u003ctd data-label=\"Treatment in this comparison\"\u003eNot deducted directly under this definition of disposable income.\u003c/td\u003e\n\u003ctd data-label=\"Information to check alongside it\"\u003eTax burden from consumption\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eHousing and financial asset holdings\u003c/td\u003e\n\u003ctd data-label=\"Treatment in this comparison\"\u003eNot measured directly by the income Gini coefficient.\u003c/td\u003e\n\u003ctd data-label=\"Information to check alongside it\"\u003eNet asset distribution and debt\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eThe OECD’s definition of disposable income treats in-kind services and consumption taxes separately. There is therefore a basis for interpreting the cash redistribution effect as weak. Extending that ranking to welfare as a whole goes beyond what the indicator measures. The household income definition in \u003ca href=\"https://www.oecd.org/content/dam/oecd/en/publications/reports/2024/06/society-at-a-glance-2024_08001b73/918d8db3-en.pdf\"\u003eOECD Society at a Glance 2024\u003c/a\u003e explains this distinction.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#common-misunderstandings-about-the-income-redistribution-ranking\" class=\"anchor\" id=\"common-misunderstandings-about-the-income-redistribution-ranking\"\u003e\u003c/a\u003eCommon misunderstandings about the income redistribution ranking\u003c/h2\u003e\n\u003cp\u003eThe figure of 28th must be read alongside the comparison group and what is being measured. This result compares 29 countries with data for 2023. It is not a ranking of all OECD member countries for the same year.\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003e28th is the rank for the redistribution improvement rate. It is not the rank for disposable income inequality.\u003c/li\u003e\n\u003cli\u003e17.6% is the percentage decrease in the Gini coefficient. It is not a tax rate or refund rate.\u003c/li\u003e\n\u003cli\u003eA low market income Gini coefficient does not necessarily mean a high standard of living. The absolute level of income is separate information.\u003c/li\u003e\n\u003cli\u003eThe Gini coefficient and the poverty rate are different indicators. The poverty rate is the percentage of the population below a specified income threshold.\u003c/li\u003e\n\u003cli\u003eThis comparison alone cannot separate the contributions of taxes and welfare benefits. Deciding which policies to change requires further analysis.\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003eTo check cross-country rankings again, the income years must match. All ages and older adults must also be distinguished. Market income and disposable income Gini coefficients can be checked together in the OECD Data Explorer.\u003c/p\u003e\n","tags":["National Pension","Everyday Finance","Taxes","Public Finance"],"faqs":[{"question":"What does it mean that South Korea ranks 28th for the effect of income redistribution?","answer":"It means South Korea ranks 28th in the Gini coefficient improvement rate among 29 OECD countries with data for 2023. The ranking measures the percentage reduction in inequality after accounting for taxes and cash benefits."},{"question":"How is the 17.6% income redistribution improvement rate calculated?","answer":"Subtract the disposable income Gini coefficient of 0.323 from the market income Gini coefficient of 0.392 for 2023. Divide the difference, 0.069, by 0.392 and multiply by 100 to get about 17.6%."},{"question":"Did taxes and welfare make inequality worse in South Korea?","answer":"South Korea's Gini coefficient fell after redistribution in 2023. Its relative ranking was low because inequality fell more in other countries."},{"question":"Does market income include only wages?","answer":"It also includes business income and income from property, among other sources. The OECD comparison uses household income adjusted for household size."},{"question":"What age counts as an older adult?","answer":"In this comparison by age, older adults are people aged 66 or older. The Gini coefficient improvement rate for older adults in South Korea was 29.6% in 2023."},{"question":"If the improvement rate for older adults is higher than the overall rate, does that mean financial security in old age is adequate?","answer":"You cannot conclude that. The improvement rate is the percentage reduction relative to the starting point. To assess financial security in old age, you also need to check income levels after redistribution and poverty rates, among other measures."},{"question":"Does the Gini coefficient improvement rate show the overall effect of welfare?","answer":"It shows the redistributive effect primarily on cash income. The value of in-kind services such as healthcare and education is not directly added to this disposable income measure."},{"question":"Has South Korea's improvement rate kept rising?","answer":"It has not risen continuously. It rose from 11.6% in 2015 to 19.0% in 2020, and was 17.6% in 2023."},{"question":"Do income inequality and asset inequality mean the same thing?","answer":"They are different concepts. Income is money received over a period of time. Assets are property, such as homes and bank deposits, held at a particular point in time."},{"question":"Why do OECD comparison rankings differ between articles?","answer":"The reference year for income data or the number of countries with comparable data may differ. You also need to check the age range and how the measure is calculated. Statistical revisions can also change past figures."}],"sources":[{"url":"https://www.yna.co.kr/view/AKR20260919056500002","title":"Yonhap News Agency, Tax and welfare redistribution ranks 28th out of 29 OECD countries… even worse for older adults, September 20, 2026","type":"data_point"},{"url":"https://www.ebn.co.kr/news/articleView.html?idxno=1724989","title":"EBN, Korea's income redistribution effect in 2023 and an OECD comparison by age group, September 20, 2026","type":"data_point"},{"url":"https://www.oecd.org/en/data/datasets/income-and-wealth-distribution-database.html","title":"OECD, Income and wealth distribution databases","type":"source"},{"url":"https://www.oecd.org/en/data/indicators/income-inequality.html","title":"OECD, Definition of the Income inequality indicator","type":"source"},{"url":"https://www.oecd.org/content/dam/oecd/en/data/datasets/income-and-wealth-distribution-databases/idd-tor-2012-onwards.pdf","title":"OECD, Income Distribution Database Terms of Reference","type":"source"},{"url":"https://www.oecd.org/content/dam/oecd/en/publications/reports/2024/06/society-at-a-glance-2024_08001b73/918d8db3-en.pdf","title":"OECD, Society at a Glance 2024, definition and measurement of household income","type":"source"},{"url":"https://www.oecd.org/en/publications/pensions-at-a-glance-2025-country-notes_8a53ef12-en/korea-republic-of_5cd52913-en.html","title":"OECD, Pensions at a Glance 2025: Korea, November 27, 2025","type":"source"}],"images":[{"id":1667,"url":"https://injoys.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MjUzNzYsInB1ciI6ImJsb2JfaWQifX0=--271cf297e94c088173c566be037fee990a59b74f/ai-ab407beb.webp","is_representative":true,"generation_method":"ai_photo","license":"ai_generated","mime_type":"image/webp","width":1536,"height":1024,"translations":{"ko":{"alt":"현관 옆에서 파란 재킷을 입는 노년 남성, 뒤편 식탁에는 여성이 앉아 있다.","caption":"2023년 한국 66세 이상 인구의 지니계수 개선율은 29.6%입니다.","description":null},"en":{"alt":"An older man puts on a blue jacket by the front door while a woman sits at the kitchen table behind him.","caption":"In 2023, South Korea’s Gini coefficient improvement rate for people aged 66 and over was 29.6%.","description":null},"ja":{"alt":"玄関脇で青い上着を着る高齢の男性。奥の食卓には女性が座っている。","caption":"2023年、韓国の66歳以上のジニ係数改善率は29.6％でした。","description":null},"es":{"alt":"Un hombre mayor se pone una chaqueta azul junto a la puerta; detrás, una mujer está sentada a la mesa.","caption":"En 2023, la tasa de mejora del coeficiente de Gini para los mayores de 66 años en Corea del Sur fue del 29,6 %.","description":null},"id":{"alt":"Pria lanjut usia mengenakan jaket biru di dekat pintu, sementara seorang perempuan duduk di meja makan.","caption":"Pada 2023, tingkat perbaikan koefisien Gini bagi penduduk Korea Selatan berusia 66 tahun ke atas adalah 29,6%.","description":null},"pt":{"alt":"Um homem idoso veste um casaco azul junto à porta, enquanto uma mulher está sentada à mesa ao fundo.","caption":"Em 2023, a taxa de melhoria do coeficiente de Gini para pessoas com 66 anos ou mais na Coreia do Sul foi de 29,6%.","description":null},"zh-hant":{"alt":"一名年長男子在門邊穿上藍色外套，後方有位女子坐在餐桌旁。","caption":"2023年，韓國66歲以上人口的吉尼係數改善率為29.6%。","description":null},"de":{"alt":"Ein älterer Mann zieht an der Haustür eine blaue Jacke an; im Hintergrund sitzt eine Frau am Küchentisch.","caption":"2023 lag die Verbesserungsrate des Gini-Koeffizienten für Menschen ab 66 Jahren in Südkorea bei 29,6 %.","description":null}}},{"id":1668,"url":"https://injoys.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MjUzODIsInB1ciI6ImJsb2JfaWQifX0=--2fa77de711eeca834932430eeb48d0a0eb17654e/ai-1bd0a223.webp","is_representative":false,"generation_method":"ai_semi","license":"ai_generated","mime_type":"image/webp","width":1536,"height":1024,"translations":{"ko":{"alt":"가을빛이 드는 동네 식료품점에서 노년 여성이 채소를 살펴보며 장바구니를 들고 있다.","caption":"2023년 한국의 지니계수 개선율은 17.6%로 비교 가능한 OECD 29개국 중 28위였습니다.","description":null},"en":{"alt":"An older woman examines leafy greens while holding a basket in a grocery store lit by autumn sunlight.","caption":"South Korea’s Gini coefficient improvement rate was 17.6% in 2023, ranking 28th among 29 comparable OECD countries.","description":null},"ja":{"alt":"秋の日差しが差す食料品店で、高齢の女性が買い物かごを持ち、葉物野菜を見ている。","caption":"2023年の韓国のジニ係数改善率は17.6％で、比較可能なOECD加盟29カ国中28位でした。","description":null},"es":{"alt":"Una mujer mayor examina verduras de hoja con una cesta en una tienda iluminada por el sol otoñal.","caption":"En 2023, la mejora del coeficiente de Gini de Corea del Sur fue del 17,6 %, la 28.ª entre 29 países comparables de la OCDE.","description":null},"id":{"alt":"Seorang perempuan lansia memeriksa sayuran hijau sambil membawa keranjang di toko bahan makanan yang disinari matahari musim gugur.","caption":"Pada 2023, tingkat perbaikan koefisien Gini Korea Selatan sebesar 17,6%, peringkat ke-28 dari 29 negara OECD yang dapat dibandingkan.","description":null},"pt":{"alt":"Uma idosa examina verduras enquanto segura uma cesta em um mercado iluminado pelo sol de outono.","caption":"Em 2023, a taxa de melhoria do coeficiente de Gini da Coreia do Sul foi de 17,6%, a 28.ª entre 29 países comparáveis da OCDE.","description":null},"zh-hant":{"alt":"秋日陽光照進雜貨店，一名年長女性提著購物籃查看葉菜。","caption":"2023年韓國的吉尼係數改善率為17.6%，在29個可比較的OECD國家中排名第28。","description":null},"de":{"alt":"Eine ältere Frau betrachtet Blattgemüse und hält einen Einkaufskorb in einem vom Herbstlicht erhellten Lebensmittelgeschäft.","caption":"Südkoreas Verbesserungsrate beim Gini-Koeffizienten lag 2023 bei 17,6 % und damit auf Rang 28 von 29 vergleichbaren OECD-Ländern.","description":null}}}],"published_at":"2026-10-07T06:20:09+09:00","updated_at":"2026-10-07T06:20:09+09:00","license":"cc_by","translation_status":"reviewed","available_locales":["ko","en","ja","es"],"data_locales":["ko","en","ja","es","id","pt","zh-hant","de"],"url":"https://injoys.com/en/articles/income-redistribution-korea-2023-oecd-ranking"}