[Exclusive] Transition Team Reviews Abolition of Support Obligation in Ahn and Lee's Pledges

Presidential Pledges of Lee and Ahn, Not President-Elect Yoon
Cooperation with Major Opposition Democratic Party... Also Laying Groundwork for Joint Government with People's Party

[Asia Economy Reporters Kim Hyemin and Bu Aeri] The Presidential Transition Committee is considering abolishing the support obligation criteria in the Basic Livelihood Security System. Since this was not part of President-elect Yoon Seok-yeol's campaign promises, there is analysis that this move reflects considerations for cooperation with the Democratic Party and the pursuit of a joint government with the People's Party.

A transition committee official said on the 13th, "Although the current administration has mostly relaxed the support obligation criteria, we are internally reviewing the current status and implementation plans to see if there are any remaining blind spots."

The support obligation system is a mechanism that denies various subsidies if parents or children have assets or income above a certain level, even if the recipient meets the Basic Livelihood Security eligibility criteria. The system is based on the principle that family members should fulfill their support responsibilities before the state, but it has faced criticism for creating blind spots in poverty support.

The current administration has gradually relaxed the support obligation criteria in consideration of these issues. In 2015, the support obligation criteria for education benefits were abolished; in 2018, those for housing benefits were removed; and in October last year, the criteria were eliminated for most livelihood benefits except for some cases. However, the support obligation system still remains in medical benefits, which account for the largest portion of the Basic Livelihood Security support budget. For livelihood benefits, the criteria continue to apply to high-income (annual income over 1 billion KRW) and high-asset (over 900 million KRW) support obligors. Accordingly, Chairman Ahn and former Governor Lee pledged during the presidential election to completely abolish the support obligation criteria for both livelihood and medical benefits.

The transition committee's consideration of abolishing the support obligation criteria, which was not part of President-elect Yoon's campaign promises, appears to reflect the committee's stance that if justified, it can incorporate other parties' presidential pledges. Currently, the transition committee and government are reviewing President-elect Yoon's campaign promises related to the Basic Livelihood Security System, and in this process, they are also examining whether to incorporate pledges from other presidential candidates. This is also interpreted as emphasizing cooperation in the upcoming situation of a divided National Assembly and fulfilling the promise of a joint government.

The transition committee estimates that about 50,000 households are unable to receive livelihood benefits due to the asset and income criteria of parents or children, and is considering raising these criteria. Regarding medical benefits, where the support obligation criteria are still maintained, it is known that the committee is reviewing a phased relaxation, such as exempting the criteria if the support obligor household includes severely disabled, mildly disabled, or chronically ill individuals. Since a comprehensive plan for the Basic Livelihood Security System through 2023 is already in place for medical benefits, it is likely that these changes will be implemented starting from the third plan covering 2024 to 2026.

The key issue is the possibility of securing the budget. The transition committee's review of additional relaxations besides the complete abolition of the support obligation criteria is also related to this. For livelihood benefits, it is estimated that completely abolishing the support obligation criteria would require approximately 180 billion KRW in additional annual funding. For medical benefits, where the criteria remain, it is estimated that about 600,000 people currently do not receive benefits, and relaxing the criteria could require an additional budget of at least 3 trillion KRW and up to more than 6 trillion KRW annually. The annual budget for Basic Livelihood Security support is about 13 trillion KRW.

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