Government top ranks skewed by officials’ huge wealth

Posted on : 2015-03-27 17:26 KST Modified on : 2019-10-19 20:29 KST
A large portion of top officials are at the top when it comes to assets, raising questions over their understanding of the public’s economic reality
302 senior officials reported on Mar. 26 by the National Assembly
302 senior officials reported on Mar. 26 by the National Assembly

Half of the senior officials in South Korea’s executive, legislative, and judicial branches of government rank in the country’s top five percent for assets, data show.

There are concerns associated with the side effects of having the government‘s highest ranks skewed toward a particular income group, including the possible overrepresentation of that segment’s interests in the execution of duties that involve coordinating the interests of earners at various different levels.

Official gazette figures on regular asset trends for 2,302 senior officials reported on Mar. 26 by the National Assembly, Supreme Court, Constitutional Court, National Election Commission, and Government Public Ethic Committee showed 1,100, or 47.8%, to hold net assets over 900 million won (US$815,100).

March 2014 figures from a joint survey of household finances and social services last year by Statistics Korea, the Financial Supervisory Service, and the Bank of Korea showed just 5.1% of South Korean households to have net assets of 900 million won or more.

The number indicates that around half of senior officials hold a level of assets that only five in 100 households nationwide possess. Even when the fact that many have been able to increase their fortunes through long careers as public figures is taken into account, the figures are still enough to raise questions about skewed representation.

Of the three branches, the largest number of asset holders in the top five percent was found among senior legal officials, with 144 out of 202 judicial officers, judges, and prosecutors, or 71.3%, holding net assets over 900 million won. 182 of South Korea‘s 292 National Assembly members, or 62.3%, belonged to the top five percent for assets. In the executive branch, 771 out of 1,790 senior central or local government officials, or 43.1%, fell into the category.

Legal officials also ranked highest for average assets at 1.97 billion won (US$1.78 million), followed by National Assembly members (1.92 billion won/US$1.74 million) and executive branch officials (1.29 billion won/US$1.17 million). Fully 81.8% of National Assembly members saw their assets increase from the year before; for 45.9% of those who did, the increase was at least 100 million won (US$90,600) in one year. Asset increases were also observed for 72.7% of legal officials and 66% of executive branch offices as a result of rising real estate prices, savings, and other factors.

Within the executive branch, thirty out of 46 Blue House officials, 21 out of 27 ministers, and 13 out of 17 metropolitan government heads belonged to the top five percent for assets. In contrast, fourteen metropolitan and provincial superintendents of education -- all but three -- fell outside the top five percent. Many are former teachers or professors.

Experts called it “undesirable” to have people with assets far in excess of the national average to hold the bulk of official seats, noting the potential to lower public expectations of fair governance. The argument is the public is likely to be less trusting that the officials will manage government affairs based on an understanding of the economic realities faced by the majority.

Indeed, a 2014 survey on household finances and welfare showed 71.6% of South Koreans to hold assets of 300 million won (US$271,700) or less.

“When you have a lot of people from the top economic segment holding official positions, there’s an overrepresentation of that segment‘s interest, which could end up causing a crisis of democracy,” said Shin Kwang-young, a sociology professor at Chung-Ang University.

Meanwhile, many continue to call for greater efforts to represent a more diverse range of income segments when selecting political service officials and making nominations for parliamentary and other elected positions.

By Kim Ji-hoon, staff reporter

 

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