Suncheon-si, Revitalizing the Real Economy by Strengthening Basic Living Support for Citizens

Welfare as a Driving Force for Real Economy Revitalization in a Welfare-Oriented Growth Model
Abolishing Support Obligation Criteria to Solve Minimum Poverty Issues in Elderly Households
Separate Payment of Housing Benefits for Youth
Expanded Sup

[Asia Economy Honam Reporting Headquarters Reporter Lee Hyung-kwon] Suncheon City (Mayor Heo Seok) plans to create a welfare-oriented growth model that stimulates the real economy through welfare investment, becoming a driving force for regional economic development and fostering a virtuous cycle.

The city judged that achieving inclusive recovery to reduce the widened wealth gap caused by COVID-19 is of utmost importance. This year, through changes in welfare systems and expansion of projects for vulnerable groups, it will lead efforts to invigorate the real economy by strengthening basic living support for citizens and operating a dense social safety net, thereby realizing a warmer welfare city.

▶ Resolving Minimum Poverty Issues in Elderly Households by Abolishing the Support Obligation Criteria

The government provides seven types of tailored benefits (livelihood, medical, housing, education, funeral, childbirth, self-support) to low-income groups to guarantee basic living for citizens.

When selecting beneficiaries, the support obligation criteria (based on the support ability of direct relatives within the first degree) have been used to determine eligibility.

As a result, although individuals themselves faced livelihood difficulties, support eligibility was determined by their children's ability to provide support, making elderly poverty a social issue.

To address the minimum poverty problem of low-income groups who are genuinely struggling, the beneficiary selection criteria have been gradually relaxed each year, and from this year, the criteria for selecting livelihood benefit recipients have been significantly changed.

Specifically, the support obligation criteria have been abolished for livelihood benefit recipients in elderly households aged 65 or older, single-parent households, and households with severe disabilities.

As of December last year, Suncheon City's livelihood benefit recipients numbered 4,700 households and 6,050 individuals, but with the expanded guidelines, the number of beneficiaries is expected to increase significantly this year, leading to a livelihood budget of 26.539 billion KRW, an increase of 2.059 billion KRW compared to the previous year.

Accordingly, the poverty blind spots of elderly and single-parent households who have not received substantial support from obligated supporters are expected to be resolved, and recipients can receive livelihood benefits as long as they meet the income recognition amount (income + assets) criteria, even if they have obligated supporters.

However, in exceptional cases where the obligated supporter has an annual income exceeding 100 million KRW or real estate worth over 900 million KRW, the support obligation criteria will still apply as before, determining protection based on the supporter’s ability to provide support.

Additionally, the income recognition amount for livelihood benefit selection criteria has increased by 4%, and the benefit payment amount has risen by 2.68%, providing a total of 3.193 billion KRW monthly to 8,500 households receiving various benefits, which is expected to invigorate the real economy of ordinary citizens.

Meanwhile, the support obligation criteria are scheduled to be fully abolished for all households starting next year, marking a further step toward a welfare state.

▶ Separate Payment of Youth Housing Benefits

Suncheon City's housing benefits cover a total of 6,101 households, with 682 owner-occupied households receiving in-kind benefits such as home repair support, and 5,419 rental households receiving monthly rent support (253,000 KRW for a four-person household). Until last year, unmarried children within beneficiary households who lived apart from their parents due to schooling or job seeking in other cities or counties were recognized as part of the same household and could not receive separate housing benefits.

Starting this year, under the 'Youth Housing Benefit Separate Payment' system, if unmarried children aged 19 to under 30 live separately from their parents within housing benefit recipient households, additional housing benefits will be provided. This enables low-income youth to focus on their studies and job seeking without worrying about housing, with the full implementation of separate youth housing benefit payments.

For example, if a three-person household in a small or medium-sized city received 217,000 KRW, and one unmarried child under 30 lives in a metropolitan area, the two remaining in the small or medium city would receive rent support of 183,000 KRW, and the child in the metropolitan area would receive 310,000 KRW, totaling up to 493,000 KRW, representing a rent support increase of up to 128%.

▶ Expanded Support for Customized Job Creation to Stabilize Employment for Low-Income Groups

Suncheon City plans to support a total of 2.6 billion KRW this year for self-support projects and asset-building support projects aimed at creating jobs for low-income groups.

The self-support projects include two types: those directly implemented by Suncheon City and those entrusted to the Suncheon Regional Self-Support Center. A total of 225 people, including livelihood benefit recipients with work ability, special self-support benefit recipients, and near-poverty self-support candidates, will participate in 15 project groups.

Especially this year, five new projects will be added to enhance participants' capabilities and market entry, including sprout ginseng cultivation, food ingredient packaging, chestnut peeling, and specialized projects such as 'Youth Cafe' and 'Internship-type Projects' for youth independence.

The asset-building support project matches a certain percentage of workers' savings with government support funds to encourage work motivation and self-reliance among low-income workers. Currently, 269 people participate in five account projects including Hope Growth (I, II), Tomorrow Growth, Youth Hope Growth, and Youth Savings Account, with plans to expand by adding about 50 more participants this year.

▶ Expansion of Integrated Home Care Services for Medical Benefit Recipients Discharged from Hospitals

Home medical services provide integrated care services to 30 long-term inpatients with low hospitalization needs or those wishing to be discharged, allowing them to receive care in their homes or communities. This service will continue to be expanded.

The service includes △ care plans and health/lifestyle counseling linked with Suncheon Medical Center, △ housekeeping and nursing services through visits by care workers from Suncheon Linje Senior Welfare Center, △ provision of three meals a day considering discharged patients’ conditions by Suncheon Comprehensive Social Welfare Center, △ transportation cost support, and △ housing support and energy efficiency improvement projects for vulnerable groups in cooperation with LH, all promoted through public-private partnerships.

▶ Integration of Support for Items Such as Supplementary Textbook Fees and School Supplies into Educational Activity Support

Educational benefits for students from low-income households were previously provided separately for items such as supplementary textbook fees and school supplies. This year, they will be integrated into educational activity support based on the student's education level (elementary, middle, high school). The amounts for this year are 286,000 KRW for elementary students (38.8% increase), 376,000 KRW for middle school students (27.5% increase), and 448,000 KRW for high school students (6.1% increase), representing an average increase of 24% compared to last year.

Suncheon Mayor Heo Seok stated in his New Year's address, "Welfare investment is an essential foundation that invigorates the real economy. Welfare becomes the driving force for regional economic development and a catalyst for a virtuous cycle. We will accelerate efforts to operate a more detailed and inclusive social safety net so that Suncheon can become a welfare-friendly city where everyone prospers together."

A Suncheon social welfare official said, "If you discover or know of neighbors in difficulty, please do not hesitate to immediately inform administrative agencies so they can receive help from welfare systems."

Applications and inquiries for various benefits such as livelihood, housing, self-support, medical, and educational benefits can be made anytime by contacting the 129 Health and Welfare Call Center or Suncheon City Hall's Social Welfare Division, or by visiting the resident administrative welfare centers in your local town or neighborhood.

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