Health and Welfare Policy Forum

Social Expenditures and Policy Challenges as Seen Through the OECD SOCX 2025

  • Author

    Shin, Jeongwoo

  • Page

    4-14

  • PubDate

    2025. 10.

  • Language

    kor

According to the latest OECD SOCX update announced in April this year, Korea’s public social expenditure as a share of GDP was 15.2 percent in 2021. This figure, representing about 70 percent of the OECD average of 22.1 percent, indicates that a significant gap in overall welfare expenditure remains between Korea and other OECD countries. In some policy areas―such as unemployment, housing, and active labor market programs―Korea spends more than the OECD average, whereas in pensions and family benefits, its social expenditure as a percentage of GDP is substantially lower than that of other OECD countries. Korea’s social welfare expenditure has increased at an average annual rate of 7.6 percent from 2011 to 2021, growing especially rapidly in the wake of the COVID-19 pandemic. This reflects a remarkable expansion of the social welfare infrastructure in a relatively short span of time. Yet, challenges remain in mobilizing resources on a large scale for emergency responses and in ensuring stable funding for continued service provision. Our findings suggest that Korea’s welfare system requires a shift toward greater support for old-age and family-related programs, enhanced private-sector involvement, and policies that promote productivity through welfare. Welfare expenditure should be viewed not as a cost, but a driver of future growth as Korea pursues the goal of an inclusive, sustainable welfare state.

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