The Mechanism of Income Redistribution: The Case of South Korea

Abstract

This article presents a case study of income redistribution in South Korea. By analysing the most comprehensive household income survey (National Survey of Family Income and Expenditure), it identifies a growing sign of change regarding the extent to which social security is beginning to play an important role in reducing income inequality. Nonetheless, it argues that its impact is yet to be sizeable enough to make a significant difference and, still further, that social security is of little use in terms of mitigating increasing inequality of original incomes which comprise the largest part of gross income.