A Study on Diagnosis of Income Distribution and Restructuring of Social Security in Korea

Abstract

This study has evaluated the income distribution problem faced by Korean society and the limitations of the existing social security systems, and has analyzed the coherence between the social security systems. The causes of deterioration in distribution in Korea include: first, aging and changes in family structure; second, dual labor market structure; and third, distribution problem due to asset distribution and asset inequality. The size of the no-care zone of the income guarantee system under 30% of the standard median income is 26.3% (2018), which is estimated to be about 400,000 based on the estimated population. It was analyzed that about 7.9 million people with less than 100% of the standard median income did not receive income guarantee benefits. The direction of reorganization of the income security system for each life cycle needs to be reorganized in the form of a categorical income security system based on age (life cycle) and working capacity. It is necessary to minimize no-care zone and overlapping problems by establishing a categorical income guarantee system in multiple layers. In the sense that financial resources are required to restructure social security, a plan for taxation must be presented together.