[Insight & Opinion] Distributing Everything Evenly Is Not True Fairness

Everyone Wants a Fair Society Where All Prosper
Fiscal Execution Requires "Selection and Concentration"
Support Groups That Drive Growth Rather Than Imposing Regulations

No one would oppose supporting those in need in order to create a fair society where everyone prospers together. The issue lies in how to achieve this.

The state must choose policies that accumulate wealth, strengthen public finances, and pursue efficiency in fiscal execution. Even conservative candidates claim they will increase the middle class to 70%, but this is merely populist and does not provide a substantive solution. Fiscal resources cannot be increased by simply reallocating funds from one group to another.

Given that just over 40% of people do not pay income or corporate taxes, the proportion of taxpayers must first be increased, even if only by a small amount, by reducing deductions and similar measures. The so-called principle of universal taxation should be expanded so that everyone fulfills their tax obligations. At the same time, since the top 10% already pay more than 70% of income taxes, and large corporations (22.1%) bear a higher corporate tax burden than small and medium-sized enterprises (14.4%), policies must be developed that lower tax rates but increase the actual tax collected.

Policies that drag down or hinder leading companies or individuals should be avoided. The entire nation can prosper only if these frontrunners are allowed to advance. Forcing top-tier scientists to focus on paperwork in exchange for meager support, proposing to create ten Seoul National Universities, or constraining companies not only with taxes but also with various laws and regulations, ultimately prevents the nation from increasing its wealth or fiscal resources.

Policies or catchphrases such as co-prosperity, mutual growth, and walking together may sound appealing, but they are burdensome to those who need to focus solely on moving forward. These individuals should be able to fulfill their obligations through taxes as a result of their achievements. While any misconduct by frontrunners should be met with strict punishment, they must be allowed to concentrate on global competition. It is the state's responsibility, not theirs, to care for those in need. Rather than restricting their activities, it would be better to foster a culture of giving, as Bill Gates did by donating his entire fortune.

All government support policies must not go against the principles of a free market economy, human nature, or fiscal capacity. Fiscal execution must be based on efficiency. When allocating limited resources, there are principles that must be followed: selection and concentration. Instead of distributing money to the entire population for popularity, it should be focused on those who meet the objectives. Distributing resources evenly is not fairness. R&D (research·development) budgets, too, should not be spread thinly across all fields, but rather allocated selectively and intensively. Only then can we compete globally. Even China is said to be making concentrated investments in urgent and important R&D areas such as AI.

The culture of dividing everything equally (the so-called 1/n culture) must change. During the Park Geun-hye administration, when a performance-based pay system for public officials was implemented and bonuses were distributed differentially, labor unions collected and redistributed them equally. For the nation’s future, it is essential to manage the country’s limited resources efficiently, with a focus on the future.

Although both the government and companies have declared their commitment to investing in AI, the scale and talent pool are insufficient. There are reportedly about 150 unicorn companies in the global AI sector, but only one from Korea is included. This is not the time for us to distribute resources equally. When the resources of the state, businesses, and finance are limited, it is not "fair" to spread them thinly, but rather essential to invest intensively in areas with the greatest potential.

Kim Hongjin, CEO of Work Innovation Lab