Poverty in South Korea

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The poverty rate (after taxes and transfers) in South Korea was 14.6% in 2013

While South Korea was one of the poorest countries in the world immediately after the Korean War , the economic upswing from 1965 to 1990 reduced the number of people living in poverty considerably. However, relative poverty has risen sharply since the 1990s - especially as a result of the 1997 Asian crisis. Today it is 14–15%. The proportion of the population living in absolute poverty is around 2%.

Definitions of Poverty in South Korea

In South Korea there is no official indicator with which poverty is measured. A person is considered poor if their income is less than the minimum cost of living. These are determined by the Ministry of Health and serve as the basis for social benefits. The social benefits are calculated from the difference between the minimum cost of living and the income of the person concerned.

development

Since 1965 the proportion of the population living in poverty has been reduced significantly. In science, South Korea is often used as an example of a policy to combat poverty. While almost half of South Koreans were poor in the 1950s, the poverty rate in the 1990s was 3.4%. Today's estimates assume 12% and sometimes even 25%. Reasons for the deterioration of the situation are seen in the Asian crisis.

Causes of Poverty in South Korea

Cyclical causes of poverty

When it comes to the causes of poverty in South Korea, one can differentiate between cyclical and structural factors. The poverty, which was caused by the Asian crisis in 1997 and the global financial crisis in 2008, arose as a result of mass layoffs and is therefore a consequence of global economic fluctuations. These hit retirees, widows and divorced women particularly hard. The strong effects of the global financial crisis can be explained by the high share of foreign trade and the strong export orientation of the South Korean economy.

Structural causes of poverty and old-age poverty

The problem of old-age poverty is more pronounced in South Korea than in any other OECD country.

However, the economic development of the last few decades alone is not enough to explain the rise in poverty since the 1990s. This is particularly evident from the fact that a large proportion of the population is affected by poverty in old age. Due to the dissolution of the traditional family and a weak welfare state, a large part of the population over 65 is affected by old-age poverty. In terms of international comparison, old-age poverty in South Korea is above average. Another reason for the high poverty rate is the large proportion of half-time jobs and short-term contracts. This problem is exacerbated by South Korea's extremely low social spending by international standards. South Korea's social spending was only 10% in 2014, which, however, represents a doubling compared to the values ​​from the 1990s. The situation in South Korea is likely to worsen considerably in the next few years, as the fertility rate of an average South Korean woman is only 1.2 children. The low birth rates will burden the social systems even more than before.

Social consequences of poverty

The social consequences of poverty and, in particular, poverty in old age are manifold. The number of suicides that can be traced back to old-age poverty is alarmingly high. The suicide rate of the population over 65 is higher in South Korea than in any other OECD country. Due to the traditionally strong respect for the elderly, poverty in old age represents a psychological burden for those affected that should not be underestimated.

Another consequence of poverty is prostitution. Due to the financially precarious situation, especially of single or widowed older women, old age prostitution has risen sharply in recent years.

Strategies against poverty

In South Korea there are no institutional structures that exclusively deal with the issue of poverty. Instead, the fight against poverty is left to individual ministries. In this context, the Ministry of Health and the Ministry of Labor take the lead. While the Ministry of Health pays for social benefits, unemployment and accident insurance are the responsibility of the Ministry of Labor.

The welfare state in Korea consists of three pillars: social insurance (state pensions, unemployment insurance, etc.), social services and public welfare. At the local level, municipal administrations and private charities advocate the situation of the socially disadvantaged social classes. The private providers play a major role in advising the Ministry of Health on social issues.

Individual evidence

  1. ↑ http://www.legco.gov.hk/yr04-05/english/sec/library/0405in34e.pdf
  2. ↑ http://www.radioaustralia.net.au/international/radio/onairhighlights/one-quarter-of-south-koreans-touched-by-poverty
  3. ↑ http://www.radioaustralia.net.au/international/radio/onairhighlights/one-quarter-of-south-koreans-touched-by-poverty
  4. ↑ https://stats.oecd.org/Index.aspx?DataSetCode=SOCX_AGG
  5. ↑ Nina Belz, Seoul: When the children break the social contract. In: nzz.ch. November 16, 2013, accessed October 14, 2018 .
  6. ↑ http://www.bbc.com/news/magazine-27189951
  7. Jump on the grain for arthritis treatment

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