Income, Consumption, and Poverty

Abstract

This article examines changes in economic welfare within Korea in terms of income, consumption, and poverty. Analyses of government statistics reveal that it has been extraordinarily successful in raising the average level of both income and consumption, while reducing the incidence of poverty during the last four decades. In reducing the unequal distribution of income during the same period, however, the country has been much less successful. In the aftermath of the 1997 economic crises, the level of poverty has risen due to sharp increases in unemployment. The lives of the poor are at risk since the social safety net system in Korea is only minimal. The heavy concentration of land and wealth in a few hands is a major obstacle to the further enhancement of the quality of economic life among the Korean people.