How weak is Korea’s income redistribution compared with other OECD countries?

Korea’s improvement rate in the Gini coefficient was 17.6 percent in 2023, placing it 28th among 29 OECD members with available data. The OECD average was 34.4 percent, meaning Korea’s redistribution effect was about half the average.

What were Korea’s market-income and disposable-income Gini coefficients in 2023?

Korea’s market-income Gini coefficient was 0.392, the lowest among the 29 OECD countries compared. Its disposable-income Gini coefficient was 0.323 after taxes, pensions and benefits, which ranked it 22nd.

Korea ranks near bottom of OECD for income redistribution

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Summary

Korea ranked 28th out of 29 OECD member countries with available data for income redistribution through taxes and welfare in 2023. Its improvement rate in the Gini coefficient was 17.6 percent, about half the OECD average of 34.4 percent. Korea’s market-income Gini coefficient was 0.392, while its disposable-income Gini coefficient was 0.323 after taxes, pensions and benefits. A researcher said the results show Korea’s redistribution through taxes and other measures is relatively weak.

Key Facts

Only Costa Rica ranked lower than Korea in OECD income redistribution through taxes and welfare systems, at 12.1 percent.
Korea’s improvement rate in the Gini coefficient was 17.6 percent in 2023, according to an analysis by Yonhap News Agency.
Korea’s market-income Gini coefficient in 2023 was 0.392, the lowest among the 29 OECD countries compared.
Korea’s disposable-income Gini coefficient was 0.323, which placed it 22nd after taxes, pensions and benefits were taken into account.
Kim Kwang-seok of the Institute for Korean Economy and Industry called for stronger government support for low-income households.

By Yonhap

Published Sep 20, 2026 10:50 am KST

Korea ranked near the bottom of Organization for Economic Cooperation and Development (OECD) member countries in income redistribution through taxes and welfare systems, latest data showed Sunday.

Korea's improvement rate in the Gini coefficient was 17.6 percent in 2023, the latest year for which OECD data is available, according to an analysis by Yonhap News Agency.

The measure compares the Gini coefficient for market income before taxes with that for disposable income after taxes and transfers.

The figure was about half the OECD average of 34.4 percent, ranking Korea 28th among the 29 OECD member countries with available data. Only Costa Rica ranked lower, at 12.1 percent.

The findings come as the Korean economy has entered an expansionary phase on strong semiconductor exports, while concerns remain that economic polarization could become entrenched.

The Gini coefficient measures income inequality, with zero representing perfect equality and one representing perfect inequality.

Korea's market-income Gini coefficient in 2023 was 0.392, the lowest among the 29 OECD countries compared, indicating the highest level of equality. Its disposable-income Gini coefficient was 0.323, however, leaving the country ranked 22nd after taxes, pensions and benefits were taken into account.

"The results show that Korea's income redistribution through taxes and other measures is relatively weak compared with other OECD countries," said Kim Kwang-seok, a researcher at the Institute for Korean Economy & Industry.

He called for stronger government support for low-income households.

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