[2022 Budget Guidelines] Overview of Major Projects... Introduction of Korean-style Sickness Allowance and Monthly 30 Infant Allowance

Final Budget Draft of Moon Administration... Focus on Supporting 'Inclusive Nation' Policy Implementation

Ando-geol, Director of the Budget Office at the Ministry of Economy and Finance (right), is announcing the budget formulation guidelines and fund management plan preparation guidelines at the briefing room of the Government Seoul Office Building on the afternoon of the 26th. March 30, 2021 [Photo by Yonhap News]

[Sejong=Asia Economy Reporter Son Sun-hee] The government will introduce a Korean-style sickness allowance and infant allowance system in next year's budget. The four key investment areas are ▲ revitalizing the economy ▲ future innovation investment ▲ establishing a foundation for livelihood and inclusion ▲ national safety and quality of life. As this is the last budget prepared by the Moon Jae-in administration, it reflects the determination to achieve government tasks so far and to lay the groundwork for the 'Korean New Deal.'

According to the '2022 Budget Formulation Guidelines' passed at the Cabinet meeting on the 30th, the Ministry of Economy and Finance will also focus on strengthening income, employment, and education safety nets to reinforce the foundation for inclusion by allocating the budget accordingly. To strengthen the income safety net, the criteria for livelihood benefit support obligations will be abolished, and the budget will be used for the pilot project of the Korean-style sickness allowance, which will be implemented from next year. The sickness allowance is a system that guarantees a certain portion of previous income when receiving treatment for a certain period due to 'general illnesses other than work-related injuries' not covered by industrial accident insurance.

To address the serious low birthrate issue, an infant allowance will also be newly established for children aged 0 to 1. Starting next year, 300,000 KRW per month will be paid, with a plan to gradually increase it to 500,000 KRW by 2025. Additionally, resources will be allocated to support new enrollment in national employment insurance for platform workers, support the national employment support system for vulnerable groups such as youth, and expand senior job opportunities.

Along with this, as global economic recovery is expected due to COVID-19 vaccine supply, emphasis will be placed on 'economic normalization' by strengthening investment in responding to employment structure changes such as digitalization and non-face-to-face transitions. Furthermore, resources will be distributed to support exports in promising sectors like non-face-to-face and new markets, enhance competitiveness of global social overhead capital (SOC) such as metropolitan transportation networks, and promote balanced national development.

In the future innovation investment sector, the budget will be invested to expand Korean New Deal investments and establish the foundation for the '2050 Carbon Neutrality' project. Leading investments will continue in building an innovation ecosystem, including support for ventures and startups, research and development (R&D), and fostering innovative talents.

The Ministry of Economy and Finance plans to notify each ministry of the next year's budget formulation guidelines and fund operation plan preparation guidelines, which were approved at the Cabinet meeting, by the end of this month.

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