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(Working Paper 2017-05/Employment and Labor Policies in Transition: Social Policy) Income Inequality: Current Status and Countermeasures (Working Paper 2017-05/Employment and Labor Policies in Transition: Social Policy) Income Inequality: Current Status and Countermeasures
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(Working Paper 2017-05/Employment and Labor Policies in Transition: Social Policy) Income Inequality: Current Status and Countermeasures

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(Working Paper 2017-05/Employment and Labor Policies in Transition: Social Policy) Income Inequality: Current Status and Countermeasures
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  • The problem of income inequality has continued to grow since the Asian financial crisis of the late 1990s. Among the Korean population aged 20 years and over, the income share of the richest 10% grew from 32.9% in 1999 to 48.5% in 2015 (Minki Hong, 2015). During the 2010s, with the income share of the highest 10% exceeding that of Japan (41.6%), U.K. (39.1%), France (30.5%) and Sweden (30.7%), Korea was second only to the United States (50.5%) in terms of uneven personal income distribution.
    Although both Korea and the Anglosphere witnessed growth in income inequality, they showed different patterns. In the Anglosphere countries, the rise in income inequality was caused by a rapid increase in the wealth of the top 1% of the income distribution. On the other hand, the rise in Korea was attributed to the income stagnation of the bottom groups. Consequently, Korea falls behind the Anglosphere countries both in terms of the income share of the top 1% and that of the bottom 50%. In 2015, the income share of the poorest 50% in France, China, and U.S. was 23.0%, 15.5%, and 10.1%, respectively, while that of the same group in Korea was only 4.5%. The income share of the top 1% was 21.2% in the U.S., 12.8% in the U.K., 8.6% in France, 10.5% in Japan, and 14.2% in Korea.

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