South Korea’s Growth Story Meets New Test of Inclusive and Sustainable Well-being

South Korea’s transformation from a poor, agrarian economy into a global economic powerhouse is widely seen as one of the most remarkable development stories of modern times. A new OECD report, prepared by the OECD Centre on Well-being, Inclusion, Sustainability and Equal Opportunity (WISE) in collaboration with Korean institutions such as the Ministry of Data and Statistics, now shifts the focus from growth to quality of life. After 30 years of OECD membership, the central question is no longer just how fast Korea has grown, but whether that growth has improved everyday well-being for all its people.

Strong Gains in Health, Safety and Education

On many fronts, Korea has delivered impressive results. People are living longer than ever, with life expectancy now higher than the OECD average. The country is also one of the safest among developed nations, with very low crime rates and major reductions in road deaths. Education remains Korea’s biggest strength. Young people are among the most highly educated in the world, and students consistently perform at top levels in global assessments. These achievements reflect long-term investments in human capital and a strong cultural focus on learning.

Rising Incomes, But Uneven Benefits

Economic progress has improved living standards across the country. Household incomes and wealth have increased steadily, and inequality has narrowed over time. Child poverty has dropped significantly, placing Korea among the better performers in the OECD. However, not everyone has benefited equally. Older people face particularly high levels of poverty, and many continue working in low-paid jobs even after retirement age. This highlights gaps in social protection systems and shows that rapid economic growth has not fully translated into security for all generations.

Hidden Pressures: Environment and Social Trust

While Korea performs well economically, there are warning signs in other areas. Environmental challenges are growing, with high carbon emissions and pressure on natural resources. Although recycling rates are strong, the transition to cleaner energy remains slow. At the same time, social trust is weakening. Fewer people feel confident in government institutions or believe they have a say in decision-making. These issues suggest that economic success alone is not enough to guarantee long-term well-being or social stability.

Young People and Mental Health at Risk

One of the most pressing concerns is the situation facing young Koreans. Despite their strong education, many struggle to find stable and well-paying jobs. High housing costs and financial pressures make it difficult to live independently, often forcing young adults to rely on their families for longer. This has led to rising stress, lower life satisfaction, and even social withdrawal in some cases. Mental health is another major challenge across all age groups. Korea has the highest suicide rate in the OECD, and loneliness is increasing, especially among the elderly and young people. Experts say the country needs more accessible mental health services and stronger community support systems.

Gender Gaps Still Persist

Despite progress, gender inequality remains a serious issue. Women continue to earn less than men and are underrepresented in leadership roles. Many leave the workforce during their childbearing years due to difficulties in balancing work and family responsibilities. Cultural expectations and workplace practices still limit opportunities for women. Addressing these gaps will require stronger policies, better childcare support, and efforts to change social attitudes about gender roles.

A Shift Toward People-Centred Policies

The report makes it clear that Korea’s future success will depend on more than economic growth. It calls for a shift toward policies that focus on people’s daily experiences, not just national income. This includes supporting young people as they enter the workforce, improving mental health care, promoting gender equality, and protecting the environment. By taking a more balanced and inclusive approach, Korea has the opportunity to build a society where prosperity is shared more widely and sustained over the long term. In short, South Korea has come a long way, but its next challenge is ensuring that progress benefits everyone.