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This paper explores the growing trend in income inequality in Korea and Taiwan. The two recent East Asian democracies have witnessed rising inequality since the 1990s but with cross-national differences. We find that market inequality is higher in Taiwan than in Korea, yet the Taiwan government’s efforts to reduce this disparity are stronger than similar moves in Korea. By applying the logic of economic, social, and political effects, we find both similar trends and divergent paths in the politics of inequality in the two countries.

This article examines how party competition has led to electoral reforms in Taiwan. Dissatisfied with the existing system, political parties in Taiwan promoted electoral reforms. The Democratic Progressive Party led the reform process and the Kuomintang collaborated with it to change the electoral system from a single non-transferable vote and multi-member district system to a first-past-the-post mixed system. Despite opposition to the changes, these two parties successfully formed a coalition and passed reform bills with the support of the public. Using a theoretical framework of actors’ rational choices, this article argues that the parties’ goals of maximizing the number of seats and strategic interaction led to electoral reforms, and that during the reforms, the provision that the first-past-the-post system would provide more seats in the Legislative Yuan was crucial for the two parties. The article supports this argument with evidence from interviews, biographies and documents.

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