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Korea’s per capita contribution exceeds 10 million won

Korea’s per capita contribution exceeds 10 million won

Posted May. 25, 2020 07:46,   

Updated May. 25, 2020 07:46


South Korean per capita contributions to the welfare budget surpassed 10 million won last year for the first time. The figure is expected to increase at a faster rate as welfare spending will continue to rise due to the aging population and low birth rates.

According to the analysis of state, local and social security taxes by year published Sunday by Rep. Chu Gyeong-ho of the United Future Party, a South Korean taxpayer contributed 10.14 million won last year. The figure was calculated by dividing the sum of last year’s tax income (384.8 trillion won) and contributions to social security benefits such as the state pension and the employment, occupational accident, health and long-term care insurances (139.6 trillion won) by the population.

The per capita contribution is increasing every year. It rose from 6.88 million won in 2013 to 7.2 million won in 2014 to 9.06 million won in 2017 and to 9.81 million won in 2018 before exceeding 10 million won last year. The contribution rate, which is calculated by dividing the per capita contribution by gross domestic product (GDP), also hit record high last year at 27.4 percent, following 25.4 percent in 2017 and 26.8 percent in 2018. Experts predict that per capita contributions will continue to rise for the foreseeable future with the introduction of new welfare programs.

Choong-Hyun Song balgun@donga.com