Now, with all of the debate about welfare
versus taxes, a new report from the OECD may help put things into perspective.
Latest data shows that Korea′s spending on welfare, relative to its GDP, is at the
bottom of the countries surveyed. Song Ji-sun has this report.
Korea′s welfare spending is the lowest in the OECD.
The country ranks dead last at 28th out of the 28 OECD countries surveyed last year.
The index presents welfare spending as a percentage of GDP, taking into account spending on taxes,
pensions and health and social insurance. Korea′s welfare spending was just over 10-percent
of GDP in 2014,… less than half of the OECD average.
That′s just a third of the spending of European countries that topped the list
Six OECD member countries without 2014 data were excluded from the analysis.
Separate data from 2013 shows that the tax burden on Koreans was 24-percent of GDP,…
which is also well below the OECD average and just around half that of major European
countries. Korea′s social welfare spending has hovered
at the bottom of the OECD for the past two decades.
The reports indicate that Koreans are paying less for social welfare, and are thus receiving
fewer welfare benefits than the countries surveyed.
Economists say that Koreans need to pay more taxes to ensure they have a strong social
safety net, especially with the combination of slowing growth, a low birth rate and a
rapidly aging population that is sure to lean on the welfare system as they grow older.
Song Ji-sun, Arirang News.