Basic Livelihood Security for Vulnerable Single-Person Households... Shared Housing Supply and 24-Hour Care Provision

Introduction of 24-Hour Patrol Care Service

[Image source=Yonhap News]

[Asia Economy Reporters Joo Sang-don and Jang Se-hee] The government plans to revitalize the convenience food industry and actively foster the 'Solo Economy' by developing single-person dining menus in response to the sharp increase in single-person households. Additionally, the supply of service robots for single-person households will be expanded, including smart home robots for youth and dementia prevention robots for the elderly.

On the 26th, the government discussed and announced mid- to long-term policy directions and response measures for single-person households at the '8th Emergency Economic Central Countermeasures Headquarters (Economic Central Headquarters) Meeting' chaired by Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki. Since 2015, single-person households have become the most common household type in South Korea, increasing to 30% of all households by 2020. However, household-related policies such as housing and welfare have remained centered on the traditional four-person household structure, highlighting the need for improvement.

Deputy Prime Minister Hong stated, "Since early this year, we have operated a task force (TF) on single-person household policies to explore government-wide policy response directions, resulting in measures focused on five key areas: income, housing, safety, social relationships, and consumption."

First, to strengthen the safety net for vulnerable single-person households, the government plans to establish a comprehensive plan for the Basic Livelihood Security System by August. Efforts will also be made to promote shared housing (share houses), enhance safety for single women households, and prevent solitary deaths among elderly single-person households. To support asset formation for vulnerable households, five existing bankbook programs will be consolidated into two. A 24-hour mobile care service providing short visits (20-30 minutes) multiple times a day will be introduced. Early screening services will be expanded for solitary elderly individuals who are at high risk of dementia. The Housing Act will newly define shared housing to spread supply guidelines to the private sector, and a shared housing seed fund will be established.

Furthermore, in response to changes in the consumption environment, the rapidly growing Solo Economy will be actively promoted. The Solo Economy refers to corporate marketing targeting single-person households due to their increase. The government plans to revitalize industries aligned with the changed consumption patterns in the single-person household era and create new export engines. A new food category for meal kits, which sell pre-prepared ingredients, will be introduced, and support will be provided to secure core technologies for high value-added convenience foods. Additionally, the development of convenience and processed seafood products will be expanded from 9 to 16 items.

At the Economic Central Headquarters meeting, the government also presented improvement measures for regulatory difficulties faced by small and medium-sized enterprises (SMEs) based on field feedback from public institutions. Public institutions, which employ 420,000 people, procure 54 trillion won, and generate 326 trillion won in sales, are important business partners for private companies, especially SMEs. The government will reduce usage fees for SMEs leasing land from the Korea Expressway Corporation. Usage fees, previously 5% for non-cultivated land, will be applied at 2-5% depending on the land use. The number of companies eligible for advance payments in procurement contracts will be increased. Government advertising fees will be paid in cash, abolishing electronic promissory notes. Deputy Prime Minister Hong said, "Public institutions, which employ 420,000 people, procure 54 trillion won, and generate 326 trillion won in sales, are important business partners for private companies, especially SMEs," adding, "We identified and addressed 115 regulatory difficulties across 69 public institutions."

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