S. Koreans to fork out more tax, welfare payments: report

SEOUL, Oct. 25 (Yonhap) -- South Koreans will likely shell out more taxes and
welfare payments in the coming years as its population ages, weighing on the
livelihoods of ordinary people suffering from an economic slowdown, a report said
Sunday.

According to the finance ministry report, the ratio of taxes and payments for
social safety net programs to gross domestic product will rise to 28.1 percent in
2013 from this year's estimated 26.5 percent.
The ratio would be the highest ever since the previous record of 26.6 percent in
2006, the report showed.
Based on the data, per-capita outlays for taxes, pension and other welfare
programs will amount to 7.84 million won (US$6,638) in 2013 compared with 5.59
million won for this year, according to the report. A four-member family would
pay an average of 31.39 million won.
The rise is attributed to an increase in payments for social safety net programs,
though the government has lowered taxes in an effort to stimulate sluggish
domestic demand.
Some experts say that the increase might reflect the nation's fast transition
toward an aged society coupled with a low birth rate, which could further
increase overall burden down the road.
The finance ministry, however, said that it is "inevitable" to see an increase in
such payments as it is in line with rising income.
kokobj@yna.co.kr
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