BUSINESS

Korea's fiscal contribution to income distribution among lowest in OECD in 2015

By Yonhap
  • Published : Jun 24, 2018 - 14:53
  • Updated : Jun 24, 2018 - 15:03

South Korea's fiscal spending was found to make less contribution to narrowing income inequality compared with other members of the Organization for Economic Cooperation and Development in 2015, data showed Sunday.

The country's relative poverty rate, referring to the percentage of people with an income below 50 percent of the median income, came to 17.7 percent in 2015, according to data from the OECD.

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But when disposable income after taxes and public transfers is considered, the rate was found to be 13.8 percent.

It means that the government's fiscal policy's contribution to income distribution was 22 percent, far below the OECD average of 56.9 percent. The country was 26th out of the 29 OECD members in terms of that percentage.

Finland topped the list with 81.5 percent followed by other European nations, including Denmark with 77.9 percent, and France and Czech Republic with 77.7 percent each. Turkey (11.8 percent) and Israel (19.4 percent) were at the bottom. (Yonhap)



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