"Korean Social Capital Index Ranks 107th... Trust Must Be Restored"

Korea Economic Research Institute Analyzes 2023 Legatum Prosperity Index
South Korea Ranks 29th Among 167 Countries Overall
Trust Domain Index Ranks 100th Among 167 Countries

It has been argued that transparency of the government and non-profit organizations should be improved and the rule of law established to restore trust, which is social capital.

According to an analysis of the '2023 Legatum Prosperity Index' by the Korea Economic Research Institute (hereinafter KERI) on the 9th, South Korea's social capital index ranked 107th in the world, significantly lagging behind its overall ranking of 29th, indicating that trust among individuals and society is very low.

The Legatum Prosperity Index, published by the UK think tank Legatum, is a global prosperity index that scores and ranks countries based on nine indicators: ▲economy ▲business environment ▲governance ▲education ▲health ▲safety and security ▲personal freedom ▲social capital ▲natural environment.

According to the 2023 Legatum Prosperity Index, South Korea's overall ranking is 29th out of 167 countries surveyed, placing it in the upper tier, but its social capital index ranks 107th, significantly lower than the overall ranking. While the overall ranking dropped three places from 26th in 2013 to 29th, the social capital index fell 12 places from 119th to 107th, indicating a serious situation. Among East Asia-Pacific countries (18 countries), South Korea's social capital index ranks 15th, near the bottom, suggesting that social trust has collapsed.

Im Dong-won, a research fellow at KERI, explained, "It is widely accepted that 'trust,' as social capital, enhances economic growth and plays many useful roles such as strengthening the foundation of social integration. Therefore, for the future of our society, the broken trust must be restored." He added, "In particular, trust encourages tolerance and acceptance of political differences as legitimate, thereby reducing political costs for conflict and problem-solving."

KERI also pointed out that not only the social capital index but also the trust index in public institutions is low. The ranking in the trust in institutions category was 100th out of 167 countries surveyed. Detailed items such as the judicial system ranked 155th, military 132nd, politicians 114th, and government 111th, mostly in the lower ranks. Among these, the judicial system dropped nine places from 146th in 2013 to 155th this year, confirming that public trust in the judicial system has further deteriorated. Due to the decline in trust in the public sector, complaints and accusations related to fraud, false accusations, and perjury?crimes involving lying?have also significantly increased.

Research fellow Im pointed out, "The phenomenon of the deterioration of social trust in our country is driven by state-related institutions or politicians. Recently, there have been judicial rulings on current and former members of the National Assembly that contradict common public sense, clearly explaining why trust in institutions is declining."

KERI argued that as polarization deepens and social trust in the government, judicial system, and non-profit organizations (such as civic groups and labor unions) collapses, there is a need for improvement measures that can foster trust for integration and coexistence. KERI explained that if trust in public institutions is enhanced, trust for integration and coexistence will be formed, which could alleviate the polarization that has deepened since the previous administration.

Research fellow Im said, "Since transparency is an essential condition for trust, improving transparency is necessary as a way to restore and enhance trust. To resolve controversies such as statistical manipulation by the previous administration and accounting transparency of non-profit organizations, the government’s public information disclosure system should be expanded and the accounting transparency of non-profit organizations improved." He continued, "For a fair society, the rule of law must be established to increase social trust. Public trust in the rule of law will only be firmly established when there is a widespread perception that there are no prejudices, biases, or partial tendencies based on discrimination."

This content was produced with the assistance of AI translation services.