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Public social expenditure as a percent of GDP

South Korea’s 2018 ratio of social expenditures to GDP showed a relatively large increase from the year before, but remained among the lowest in the OECD.

According to Democratic Party lawmaker Seo Hyung-soo’s Jan. 24 analysis of social expenditure figures shared that day by the OECD, South Korea’s ratio of social expenditures (SOCX) to GDP was 11.1% for 2018, a 0.5 percentage point increase from its 2017 level. While the percentage of increase has risen slightly from 10.2% in 2015 to 10.5% in 2016 and 10.6% in 2017, it remains at nearly half the OECD average of 20.1%.

South Korea has the third-lowest SOCX ratio among OECD members, after Chile (10.9% in 2016) and Mexico (7.5% in 2017). The OECD’s SOCX figures are an indicator reflecting member country government expenditures on social policy, including payment in cash and kind toward societal risks related to areas including aging, unemployment, public health, and disability.

The country with the highest ratio of public social expenditures for 2018 was France at 31.25%. Other European countries known for being welfare states continued to rank highly, including Belgium (28.9%) and Finland (28%). While known to be relatively weaker in social services, the US (18.4%) and Japan (21.9% in 2015) both had SOCX ratios around the OECD average.

By Bang Jun-ho, staff reporter

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