The figure above presents the evolution of Korea's Gini coefficient based on both market income and disposable income, the latter reflecting the redistributive effects of fiscal policy. Prior to the Asian Financial Crisis, income inequality increased gradually, with the Gini coefficient remaining below 0.30.
The crisis, however, marked a sharp deterioration in income distribution. Although inequality temporarily declined as welfare spending expanded during the post-crisis recovery, the Gini coefficient resumed its upward trend in the 2000s, surpassing the 0.30 threshold and continuing to rise. Following the Global Financial Crisis, inequality gradually declined for several years before increasing again.
The limitations of the Gini coefficient as a measure of inequality are well recognized. Nevertheless, these long-run movements broadly capture underlying changes in the distribution of income in Korea. Since 1998, progressive and conservative governments have alternated in power, yet the ideological orientation of the ruling party does not appear to have had a meaningful impact on the overall trajectory of income inequality.
The figure above presents the evolution of Korea's Gini coefficient based on both market income and disposable income, the latter reflecting the redistributive effects of fiscal policy. Prior to the Asian Financial Crisis, income inequality increased gradually, with the Gini coefficient remaining below 0.30.
The crisis, however, marked a sharp deterioration in income distribution. Although inequality temporarily declined as welfare spending expanded during the post-crisis recovery, the Gini coefficient resumed its upward trend in the 2000s, surpassing the 0.30 threshold and continuing to rise. Following the Global Financial Crisis, inequality gradually declined for several years before increasing again.
The limitations of the Gini coefficient as a measure of inequality are well recognized. Nevertheless, these long-run movements broadly capture underlying changes in the distribution of income in Korea. Since 1998, progressive and conservative governments have alternated in power, yet the ideological orientation of the ruling party does not appear to have had a meaningful impact on the overall trajectory of income inequality.