South Korea ranked 28th among 29 OECD countries for the effectiveness of its tax and welfare systems in reducing income inequality, according to the latest available data. Its 2023 Gini coefficient improvement rate was 17.6%, compared with the OECD average of 34.4%, while only Costa Rica posted a lower result at 12.1%. South Korea had the most equal market-income Gini coefficient among the countries compared, at 0.392, but its disposable-income measure stood at 0.323 after taxes, pensions and benefits, ranking it 22nd. The findings come as the economy enters an expansionary phase driven by semiconductor exports, while concerns remain that economic polarization could become entrenched. Kim Kwang-seok of the Institute for Korean Economy & Industry called for stronger government support for low-income households.