This study employed the Gini coefficient decomposition analysis to classify and examine fishery household income inequality according to income sources. The raw data from the Fisheries Economic Survey by the National Statistical Office were used for the analysis after equalization according to the recommended method of the OECD. In particular, the Gini coefficient was decomposed by classifying with and without public subsidies, and the contribution, correlation, and marginal effect by income source were presented.As a result of the analysis, the inequality of fishing income and non-fishing income of fishermen was worsening, and the inequality of transfer income was continuously easing. Among them, fisheries subsidies have been analyzed to have the greatest contribution to the Gini coefficient of gross income and the highest relative marginal effect, although distribution inequality has been alleviated. On the other hand, other subsidies, including public pensions, were found to have the opposite contribution, correlation, and marginal effect to fisheries subsidies. The results of this analysis showed that even within public subsidies, the contribution to income redistribution might differ depending on the nature of the subsidy. In addition, in the case of other public subsidies, it can be seen that the transition from selective welfare to universal welfare occurs.

We propose some countermeasures needed to cope with fortifying international regulations for fisheries subsidies. The government should rigorously select the recipients of fisheries subsidies to ensure that they are not engaged in ineffective projects by resorting to subsidies. On the other hand, the government should make the individual applicant’s application for the subsidies easier by exempting them from the submission of a burdensome feasibility report. As for the strengthening regulatory international movements against the fisheries subsidies, we can consider the following countermeasures. One is not to designate and provide prohibitive subsidies in such a way that violates international norms. The other one is to reform the domestic fisheries subsidies system in Korea with the following points considered. It should be considered that fisheries subsidies, which can be categorized as the actionable subsidies, should not be granted to the items that can be exported but to the items that can be used for domestic consumption or processing. In the case of non-actionable subsidies, the subsidies are mainly allowed for promotion of public-sector research and development, regional development, and adaptation to new environmental regulations. Thus, the non-actionable subsidies should be designated in the consideration of the allowances for these activities.