Based on a measure that combined the Gini coefficient, the level of democratic development, and the degree of government's conflict management ability, he said that a country with a low degree of income disparity, highly developed democratic institutions, and a government capable of resolving conflicts well tends to have a low social conflict index. According to the institute's own analysis, Korea's social conflict index is high because the government's ability to resolve conflicts is inadequate despite the fact that the country's income inequality and democracy levels are in the middle of the OECD countries.

 

Park said, "The economic cost incurred by social strife is between 82 and 246 trillion won a year. If Korea's social conflict index improves to the level of the OECD average, our per-capita GDP could rise by 7 to 21 percent. Social and political instability is one of the most important factors that increase uncertainties for corporate decision makers and make high-caliber talents move out of the country."