ROK Drop

Avatar of GI KoreaBy on August 28th, 2013 at 8:20 pm

Korean Government’s Welfare Pledges Unsustainable

It seems like everyone likes welfare programs but no one likes paying the taxes to support them and Korea is no different:

Economic analysts agree that it will be impossible for the Park Geun-hye administration to carry out its welfare pledges without increasing taxes.

According to a survey conducted by the JoongAng Ilbo, 19 out of 20 analysts in the fields of macroeconomics, finance and taxation said, “Expanding welfare benefits without raising tax rates is impossible.”

The Park government has promised to expand welfare benefits by 135 trillion won ($120.9 billion) over the next five years, or 27 trillion won additional per year. In 2012, the Lee Myung-bak administration spent a total of 97.4 trillion on welfare.

Ahn Sang-hoon, a social welfare professor at Seoul National University, was the sole exception.

“It is possible for the next five years,” he said.

But even Ahn believed it was impossible to afford the spending longer than that.

Before increasing taxes, the analysts said the government should reconsider its welfare pledges. [Joong Ang Ilbo]

You can read much more at the link.

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