Perceptions of unfairness and a weak universal welfare state in South Korea

Abstract

Since its democratization, South Korea has widened the population coverage of various social programs, yet the generosity of most programs remains shallow. Existing studies offer state/elite-centered explanations for this move toward a weak universalistic welfare state. I suggest that the move rather accurately reflects citizen attitudes as well: a majority of Koreans across economic classes support welfare state expansion, yet a large segment of the self-proclaimed supporters are unwilling to pay for the expansion. I argue that underlying such mixed attitudes is the perceived unfairness of the tax and transfer systems. More specifically, (1) the perception of unfair contribution vis-a-vis other taxpayers and (2) the perception of unfair fiscal exchange with the government significantly lower one's willingness to contribute to the welfare state. My analysis of a nation-wide survey lends support to my argument. My findings have important policy implications for the emerging economies where, despite a growing citizen demand for social protection, the fiscal support base for welfare state expansion is frail.