The purpose of this study is to examine the effectiveness of globalization to income equality in South
Korea. The empirical models are constructed with real (RTR) and financial (FDI) sectors, respectively, and
cointegration methodologies by fully modified (FM)-OLS and cannonical cointegration regression (CCR) are
employed for empirical analysis. Empirical evidence indicates that income equality in terms of Gini
coefficients is sited at increasing range of Kuznets curve. And, the shapes of Kuzntes curve are not altered
even if the models are associated with the globalization. These are retained in the short run and in the
long run as well. However, the globalization may affect positively to mitigate income inequality in general.
In this case, the RTR has an effect by lagged variables, while the FDI influences by current variable in
reducing income inequality. As far as financial crisis in the late of 1990s concerns, the income inequality
is deteriorated before the crisis, and it turns to be improved since then. It also has to be mentioned that the inflection or turning point of Kuznets curve is displaced to lower level of GDP and per capita GDP.