South Korea's per capita gross national income (GNI) is about to enter the US$30,000 (33.85 million won) level, but its actual economic levels felt by South Korean workers, such as wages and working hours, fall short of countries which have achieved a GNI per capita of US$30,000 (33.85 million won).
According to a report entitled “Gap between Economic Development and Public Economy” released by Hyundai Research Institute on July 16, South Korea fell short of the G7 countries in most of key indicators in comparison with the G7 levels of wages and working conditions when they reached a GNI per capita of US$30,000 (33.85 million won).
The report forecasted that South Korea will achieve a GNI per capita of US$30,000 (33.85 million won) between 2018 and 2021. Since surpassing the US$20,000 (22.6 million won) mark in 2006, South Korea’s GNI per capita showed an annual wage growth rate of 0.7 percent until last year, which is below the average of 1.1 percent of the G7 countries. South Korea had an annual average of 2,069 work hours in 2016, which was 120.8 percent level of the G7 with the average of 1,713 hours. South Korea also had 11.4 percent of the improvement rate of the Gini coefficient, which is often used to measure income redistribution of taxation and fiscal policies, in 2014, far below 31.5 percent of the average of the G7.
The report also said, “The country needs to establish a growth model that can make the outcome of economic growth spread to the public economy.”