Korean Reinsurance : · Korea’s income distribution in 201...

For 2016, all major indicators of income distribution in Korea deteriorated as weak employment left low-income families, in particular, financially worse off. Yet, it turns out that the efficacy of relevant government policies improved thanks to an expansion in such benefits as basic pension, earned income tax credit and customized basic allowance.

For 2016, all major indicators of income distribution in Korea deteriorated as weak employment left low-income families, in particular, financially worse off. Yet, it turns
out that the efficacy of relevant government policies improved thanks to an expansion in such benefits as basic pension, earned income tax credit and customized basic allowance.

In other words, a majority of workers in the first quintile or the bottom 20% income bracket suffered most in respect of both earned and business income that accounted for 69.0% and 20.1% of the total ordinary income, respectively.

Under this circumstance, the Korean government said that it will put a lot of efforts into addressing the income gap between the rich and the poor. To this end, the Moon administration plans to create more and better jobs through proactive fiscal measures, provide bespoke support for the financially marginalized, and promote well-prepared start-up ideas. At the same time, to raise the income level of poor families, minimum wage will gradually be adjusted upward, and post-retirement income schemes be reinforced.