[Exclusive] Korea's National Burden Ratio at 25.3% Near Bottom... OECD Hits All-Time High

OECD Revenue Statistics Analysis
Korea Ranks 30th in National Burden Ratio
8.8 Percentage Points Lower Than OECD Average
Sharp Decline in Korea's National Burden Ratio
Decrease Driven by Corporate Tax Revenue
OECD Average Hits Record High a

President Lee Jaemyung recently remarked that "Korea's tax burden ratio is very low compared to advanced countries." At the same time, the national burden ratio, which includes various social insurances such as pensions and health insurance, was also found to be among the lowest. While Korea's national burden ratio for 2024 stands at 25.3%, down from the previous year, the average burden ratio among Organisation for Economic Co-operation and Development (OECD) countries reached a record high of 34.1%. Among countries where the burden ratio declined, Korea experienced the second-largest drop.

The OECD recently released its "Revenue Statistics 2025" report, which contains these findings. The report details the average national burden ratio among OECD member countries and the revenue structure of each country. The national burden ratio is the proportion of gross domestic product (GDP) accounted for by taxes (national and local) and social security contributions. While Korea typically focuses on the tax burden ratio, international organizations primarily examine the national burden ratio.

On the 3rd, citizens are moving at Gwanghwamun Intersection in Jongno-gu, Seoul. Photo by Yonhap News

Among the 38 OECD member countries, the 2024 average national burden ratio, calculated from data available for 36 countries, was 34.1%. This figure represents an increase of 0.3 percentage points from the previous year and is the highest since the OECD began compiling these statistics. This is also the first time the national burden ratio has risen since 2021, during the COVID-19 pandemic. The increase was influenced by member countries implementing policies to expand tax revenues in response to both short- and long-term spending pressures.

Korea's national burden ratio was 25.3%, which is 8.8 percentage points lower than the OECD average, ranking 30th out of 36 countries. The United States ranked 29th at 25.6%, followed by Costa Rica (24.8%), Ireland (21.7%), Chile (20.5%), Colombia (19.9%), and Mexico (18.3%). Denmark (45.2%), France (43.5%), Austria (43.4%), Germany (38.0%), and the United Kingdom (34.4%) were among the European countries at the top of the list.

In 2024, the national burden ratio increased in 22 countries. Latvia (2.4 percentage points), Slovenia (1.9 percentage points), and both Poland and Luxembourg (1.7 percentage points each) saw relatively large increases. By contrast, 13 countries experienced a decline. Korea's ratio dropped by 1.5 percentage points, the second-largest decrease after Colombia (-2.2 percentage points), followed by Norway (-1.4 percentage points).

The relatively large decrease in Korea's ratio was mainly due to a drop in corporate tax revenues. In fact, the Korean government's total national tax revenue for 2024 amounted to 336.5 trillion won, a decrease of 7.5 trillion won (2.2%) from the previous year. Corporate tax revenues plummeted to 62.5 trillion won, down 17.9 trillion won (22.3%) from the previous year due to deteriorating corporate performance. The OECD also noted that declines in corporate tax revenue contributed to the decreases in Colombia and Norway.

Looking at the 2023 figures, it was a global trend for income tax revenues to increase while the share of corporate tax revenues declined. Personal income tax was mainly based on labor income. In Korea, social security contributions accounted for the largest share of tax revenue at 29.2%, while income tax made up 19.8%, surpassing corporate tax at 14.4%. Property taxes accounted for 11.5%, the highest among countries where the share exceeded 10% (the United States, Israel, and the United Kingdom).

Meanwhile, on December 24, President Lee Jaemyung visited Severance Hospital in Sinchon, Seoul, where he met with patients with rare diseases and their families. In response to a request to increase the hours for disability activity support services, he said, "I will try to increase them as much as possible," and added, "Korea's tax burden ratio is very low compared to advanced countries. We need to increase it through consensus among members of society." According to the National Statistical Portal (KOSIS), the tax burden ratio for 2024 was 17.7%, a decrease of 2.7 percentage points. Last year, the government projected in its "2025-2029 National Fiscal Management Plan" that by 2029, the tax burden ratio and national burden ratio would reach 19.1% and 27.0%, respectively.