Click here for the full English version of the Research in Brief, No. 2023-12, Vol. 116, "The Composition and Trends of Korea's Expenditure on Disability Policies: A Comparison with Other OECD Countries."

Korea's Expenditure on Disability Policies as a Share of GDP Constitutes Less than a Quarter of the OECD Average

• ■Korea's overall public social expenditure fast approaches the OECD average, but spending on disability policies amounts to just over one-third of the OECD average as a share of GDP and the pace of the increase is moderate.

• ■Korea's spending on disability policies remaining at such low levels is attributable to disability assistance programs remaining low in both coverage and benefit level.

KIHASA has released the 442^nd issue of the Health and Welfare Issue and Focus, “The Composition and Trends of Korea’s Expenditure on Disability Policies: A Comparison with Other OECD Countries.” The lead researcher is Oh Wook-Chan, a research fellow at the Department of Social Services Policy Research.

Dr. Oh said, “In the three decades to 2020, Korea’s disability spending has grown significantly, from 486.6 billion won to 16.1903 trillion won, with its share of GDP increasing from 0.24 percent in 1990 to 0.83 percent. The disability budget earmarked for the Ministry of Health and Welfare has more than doubled, from 2.7 trillion won in 2017 to 4.0854 trillion won in 2022.”

“However, despite a recent rapid increase, Korea’s spending on disability policies is still about one-third of the OECD average, and its rate of increase is moderate compared to the rest of public social expenditure,” Dr. Oh said.

“While the determination of whether the level of certain social expenditures is adequate as a share of GDP can be a complex process involving exploration of their efficiency and impact, changes in the demands and conditions concerning them, and a comparison with other social expenditure items, an analytic account of public expenditures can serve as the most basic instrument to look into the realities of the policies concerned,” he added. “In this article I examine Korea’s disability policy expenditures as a percentage of GDP and in terms of composition and trends, using OECD SOCX data, and draw policy implications.”

Summary

• ■In 2020, Korea spent 0.83 percent of its GDP on disability policies, just over one-third of the OECD average. Disability benefits in kind as a share of GDP have approximated the OECD average, but disability cash benefits constituted less than a quarter of the OECD average as a share of GDP.

• ■Despite Korea’s overall public social expenditure fast approaching the OECD average, spending on disability increased only at such a relatively moderate pace that it is hard to expect that it will soon reach a proportion anywhere near considered in balance with the rest of public social expenditure.

• ■Korea’s spending on disability policies remaining at such low levels as a share of GDP is attributable to disability assistance programs remaining low in both coverage and benefit level. Unless substantial changes are made to disability cash assistance, which as a share of GDP still falls far below the OECD average, Korea’s overall spending on disability policies is likely to remain low compared to the OECD average.