A study by the Korea Institute for Health and Social Affairs of national opinion reveals once again that resolving the disparity between rich and poor is considered an emergency. 63.5 percent of respondents said the problem is "very serious," and 29.5 percent said it is "somewhat serious," meaning that 93 percent of the people think it is serious. Even if you take into account the limitations inherent in surveys, the significance of this is not to be taken lightly as it confirms the results of the indicators by which the disparity is measured. If you look at the Gini coefficient or income figures you see that wealth distribution has continued to worsen since the financial crisis.
There are reasons for the increasing disparity. As Korea received emergency funds from the International Monetary Fund and engaged in corporate and financial restructuring, the weak in society had to carry relatively heavy burden. The way irregular jobs increased so much because the structure of employment changed came in the wake of that. The increased disparity between conglomerates and mid-sized companies, and between companies depending on domestic consumption compared to those dependent on exports, has also been a contributing factor. At least the government has improved social welfare policies; if it had not, the structure of distribution would be even worse.
Korea will find it hard to become an advanced nation in the true sense in such a situation. The government's role remains important. It is time to do something about reducing the disparity between rich and poor. Various government ministries have been working since the start of the year to facilitate common development and growth, but one still does not notice any policies that appear effective. There particularly needs to be concrete measures to help the weak in society, particularly low-income common people. It is important that the issue of bad personal debt is resolved and that the social safety net is made substantial. Reforming the taxation system so that the rich pay more in taxes must not be left out either. Does not the survey say the same when 36.4 percent say government policy must pursue growth and balanced distribution simultaneously and 33.7 percent say wealth distribution should be given higher priority than growth, compared to the 29.7 percent who want growth to come first?
The Hankyoreh, 17 February 2005.
[Translations by Seoul Selection (PMS)]
[Editorial] Country's Views on Wealth Disparity |
