Deputy Minister Gi Jae: "Next Year's Budget Focuses on Improving Income Inequality Centered on Low-Income Groups"

"Support Package for Low Birthrate and Aging Population... Strengthening Customized Support for Vulnerable Groups"

Ando-geol, 2nd Vice Minister of the Ministry of Economy and Finance. (Photo by Yonhap News)

[Sejong=Asia Economy Reporter Moon Chaeseok] Ando-geol, Vice Minister of Strategy and Finance, stated on the 6th regarding next year's social welfare budget, "We will focus on improving income inequality centered on low-income groups."

Vice Minister Ahn made these remarks at a social welfare budget consultation meeting held at the Jongchon Comprehensive Welfare Center in Sejong City. He said, "We will also focus on effective customized package support in response to low birth rates and aging, as well as strengthening tailored protection and self-reliance support for vulnerable groups such as the disabled and abused children."

The proportion of welfare spending in government expenditures increased from 32.3% in 2017 to 35.8% in 2021. Public social welfare expenditure (SOCX) relative to Gross Domestic Product (GDP) also expanded from 10.1% in 2017 to 12.2% in 2019.

To improve income inequality centered on low-income groups, the government will completely abolish the support obligation criteria for the Basic Livelihood Security System starting in October. The number of households receiving livelihood benefits is expected to expand to about 1.15 million households next year. The housing benefit standard rent, currently 95% of market rent, will be adjusted to the market rent level by 2022. The scale of education benefits will be increased, and remote education support to reduce educational gaps for low-income groups will also be expanded.

To respond to low birth rates, the government will promote package projects such as activating parental leave for couples (providing up to 3 million KRW per month to those on joint leave), establishing an infant allowance (increasing from 300,000 KRW per month in 2022 to 500,000 KRW per month in 2025), the First Meeting Package (a 1 million KRW voucher for pregnancy and childbirth medical expenses and a 2 million KRW First Meeting voucher), expanding public childcare, and increasing support for families with multiple children.

As measures to address aging, the government will provide basic pensions for the elderly, strengthen non-face-to-face health and safety management systems for seniors and chronic disease patients, including remote health checks.

The government also plans to allocate budget for providing self-reliance support services aligned with the phased abolition of the disability grading system, asset formation support for children aging out of care, and expanding healing and recovery programs for abused children.

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