Korea’s meteoric rise to prosperity since the 1960s is often cited as an almost unparalleled example of success in lifting a population out of poverty. But despite a vast improvement in living standards since the aftermath of the Korean War, poverty remains an everyday reality for a significant number of Koreans.
According to the Organization of Economic Cooperation and Development, 15.2 percent of Koreans earn below 50 percent of the median wage after taxes. Some of this poverty is relative, measured against the wealth of society as a whole, rather than reflecting people’s ability to make ends meet. Nevertheless, a widening gap between the richest and poorest has become a major concern. More than 45 percent of Korea’s elderly fall below the poverty line, compared to the OECD average of around 13 percent.
More striking for a developed country is the number of households in absolute poverty. According to a study by Korea Institute for Health and Social Affairs covering the years 2004-2009, 27 percent of households had seen their income fall below the absolute poverty level for a least one year, meaning they couldn’t meet the costs of basic goods.
Another statistic puts it that 2.11 million workers earned less than the minimum monthly wage of 858,990 won (about $770) in 2010.
Only 5-6 percent of households or less can receive the benefits from the social security or social assistance programs.
The high percentage of irregular casual workers in particular as a major driver of poverty here. Last year, irregular workers made up more than 34 percent of the country’s workforce, according to official figures, high by OECD standards. Other estimates put the figure at more than 47 percent. With many low wage workers unable to make regular pension contributions securing their future financial security will be a particular challenge.
Kim Kyo-seong, a professor at the School of Social Welfare at Chung-Ang University writes "Our big companies like Samsung always make a big profit but we can never observe a trickle-down effect at all. They get everything. In that kind of economic world, growth means nothing.”
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According to the Organization of Economic Cooperation and Development, 15.2 percent of Koreans earn below 50 percent of the median wage after taxes. Some of this poverty is relative, measured against the wealth of society as a whole, rather than reflecting people’s ability to make ends meet. Nevertheless, a widening gap between the richest and poorest has become a major concern. More than 45 percent of Korea’s elderly fall below the poverty line, compared to the OECD average of around 13 percent.
More striking for a developed country is the number of households in absolute poverty. According to a study by Korea Institute for Health and Social Affairs covering the years 2004-2009, 27 percent of households had seen their income fall below the absolute poverty level for a least one year, meaning they couldn’t meet the costs of basic goods.
Another statistic puts it that 2.11 million workers earned less than the minimum monthly wage of 858,990 won (about $770) in 2010.
Only 5-6 percent of households or less can receive the benefits from the social security or social assistance programs.
The high percentage of irregular casual workers in particular as a major driver of poverty here. Last year, irregular workers made up more than 34 percent of the country’s workforce, according to official figures, high by OECD standards. Other estimates put the figure at more than 47 percent. With many low wage workers unable to make regular pension contributions securing their future financial security will be a particular challenge.
Kim Kyo-seong, a professor at the School of Social Welfare at Chung-Ang University writes "Our big companies like Samsung always make a big profit but we can never observe a trickle-down effect at all. They get everything. In that kind of economic world, growth means nothing.”
Source
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