The Korea Chamber of Commerce and Industry (KCCI) announced Wednesday that Korea ranked 88th out of 119 countries in the “2022 Global Donation Index” announced at the end of last year by the British Charity Aid Foundation (CAF). It fell by 31 places in 10 years from 57th in 2011.
Since 2010, CAF has surveyed about two million people in 120 countries every year on topics such as 'helping people you do not know,’ 'donation experience,’ and 'volunteering’ and ranks by country.
During the same period, China overtook Korea, rising from 140th to 49th. The KCCI analyzed that this resulted from the rapid economic growth and the spread of the “shared wealth” movement in China, where “the people get rich together.” At the same time, South Korea’s donation sentiment shrank amid economic uncertainty. Among developed countries, the United States and Australia ranked third and fourth last year, followed by Canada at 8th, the United Kingdom at 17th, Sweden at 50th, and Germany at 55th.
According to the report, private donations fell from 0.79% of GDP in 2011 to 0.75% in 2021, even in volume. The KCCI also cited a survey by the National Statistical Office in November 2021, adding that the awareness regarding donations is deteriorating, with the participation rate of Koreans falling from 36.4% in 2011 to 21.6% in 2021.
The institution emphasized the importance of expanding tax benefits for donations and improving regulations on public corporations. While Korea applies a tax credit for 15% of donations, the U.S., the U.K., and Japan provide income deductions for all donations. Tax credits benefit the calculated tax amount, whereas income deductions reduce the taxable income, so high-income earners prefer income deductions. “Since public service corporations are a channel for companies to fulfill their social responsibilities, regulations should be eased, such as lifting restrictions on exercising voting rights, to encourage activities,” the KCCI also insisted.