Oh Se-hoon's 'Safe Income Pilot Project' Recruiting 500 Households... First Payment in July

'More for Lower Income' In-depth Study Until 2026
Targeting 50% Median Income... Assets Below 326 Million Won

Seoul Mayor Oh Se-hoon is holding a New Year's press conference at Seoul City Hall on the 7th. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Lim Cheol-young] Seoul City will launch the ‘Safe Income Pilot Project,’ a future welfare model under Mayor Oh Se-hoon, starting with the recruitment of participating households at the end of March. The city plans to begin the first payments in July and enter a five-year policy experiment.

On the 22nd, Mayor Oh Se-hoon held a press briefing on the ‘Safe Income Pilot Project’ at Seoul City Hall and announced that 800 households with income at or below 85% of the median income (approximately the bottom 33% income bracket) and assets below 326 million KRW will be selected as the support group to carry out the project. In the first phase this year, 500 people will be selected, and in the second phase next year, 300 people will be selected, with a total of 19.5 billion KRW to be paid to participating households over three years.

Mayor Oh said, “Over the past 20 years, the government and Seoul City have made multifaceted efforts to support vulnerable groups through systems such as the National Basic Livelihood Security System, but the shadows in our society have not diminished. Now, as digital transformation and the Fourth Industrial Revolution accelerate, this is the golden time to prepare for a major shift in global human welfare history.”

The support group will receive half of the difference between 85% of the median income and their household income for three years. For a single-person household with zero income, they will receive half of the shortfall compared to 85% of the median income (1,653,000 KRW), which amounts to 827,000 KRW per month. Safe Income cannot be received concurrently with existing cash welfare benefits such as ▲Living and Housing Benefits ▲Basic Pension ▲Seoul-type Basic Livelihood Security ▲Seoul-type Housing Voucher ▲Youth Allowance ▲Youth Monthly Rent.

This year, in the first phase, 500 households with income below 50% of the median income will be selected through open recruitment, and payments of ‘Safe Income’ will begin on July 11. Next year, in the second phase, an additional 300 households with income between 50% and 85% of the median income will be selected, expanding the total to 800 households.

The selection of 500 households in the first phase will be conducted through a scientific random selection method in three rounds, considering household size, head of household age, and income level. Online applications will be accepted, and from the first round of 5,000 households, income and asset investigations will narrow the group to 1,800 households, from which the final 500 households will be selected.

A comparison group will also be selected to verify the effects. Over a total of five years, including the three-year support period, the support group and comparison group will be surveyed and studied in a time-series manner to analyze changes within the groups. The impact of Safe Income will be deeply analyzed focusing on seven major areas: work and employment, household management, education and training, housing environment, healthy living, family and society, and attitudes toward life.

In particular, Seoul City aims to promote the ‘Safe Income Pilot Project’ as a global income experiment by conducting research with domestic and international scholars based on credible data and through a provisional ‘World Income Security Network.’ From the initial research design stage, scholars from welfare, economics, and social sciences both domestic and abroad who are interested in the pilot project will participate, and regular forums will be held to discuss and verify the new income security system objectively and credibly.

Efforts will also be made to establish an international cooperative system for the development of income security systems. Initially, cooperation will be strengthened through memorandums of understanding and regular academic meetings, and the network will be expanded into a ‘World Income Security Network’ involving cities, research institutions, and scholars from countries conducting or interested in related income security experiments, such as Berlin and Chicago. Starting next year, annual general meetings, information exchange, research cooperation, and joint academic presentations will be held to share multilateral experiences and collaborate globally on new system development.

Mayor Oh said, “Through the ‘Safe Income Pilot Project,’ we will closely verify with domestic and international experts what a future welfare system is that allows all Seoul citizens to live a dignified life without losing self-esteem, leaving no one behind.”

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