From Next Month 1st, Emergency Welfare Support System Expanded... Responding to High Inflation

Livelihood Support Fund Increased by Up to 19.35%
Asset Criteria for Eligibility Also Relaxed
Existing Unemployment and Livelihood Benefit Recipients Not Eligible for Support

[Asia Economy Reporter Kim Young-won] The emergency welfare support system, which provides financial aid to low-income households struggling to maintain their livelihoods in crisis situations, will be expanded.

On the 22nd, the Ministry of Health and Welfare announced that to stabilize the livelihoods of low-income groups heavily affected by high inflation and high oil prices, it will raise the amount of emergency welfare living support payments and temporarily relax the asset criteria for eligibility, effective from the 1st of next month.

The living support payment, which had been about 26% of the median income standard, will now be expanded to about 30%. The highest increase rate is 19.35% for single-person households, who can receive 583,400 KRW per month. For a four-person household, the support amount will increase by 17.73% to 1,536,300 KRW.

Among the eligibility criteria for the emergency welfare support system?income, general assets, and financial assets?the standards for general and financial assets will be temporarily relaxed until December 31 of this year. The current asset limits are 241 million KRW for metropolitan areas, 152 million KRW for small and medium cities, and 130 million KRW for rural areas. For financial assets, the limit is 6 million KRW.

Under the relaxed criteria, a deduction limit has been introduced allowing one residential property (including leased) owned by the applicant or cohabiting family members to be exempted from the asset calculation. The deduction limits are 69 million KRW for metropolitan areas, 42 million KRW for small and medium cities, and 35 million KRW for rural areas.

For example, Mr. A living in Seoul has assets totaling 280 million KRW, including a lease deposit of 50 million KRW. Under the original criteria, he would be excluded from receiving living support, but by deducting the lease deposit within the deduction limit, his assets amount to 230 million KRW, making him eligible for emergency welfare living support.

Regarding financial assets, the deduction rate for living preparation funds deducted from the queried financial assets will be raised from 65% to 100% of the median income standard. For instance, Mr. B, a four-person household in Chungcheongnam-do, saved 10 million KRW for his children's tuition. Under the original criteria applying 65% of the median income (3,329,000 KRW), even after deduction, his financial assets exceed 6 million KRW, making him ineligible for support. However, applying the expanded deduction criteria, 5.12 million KRW (100% of the median income) is deducted from the 10 million KRW, recognizing about 4.87 million KRW as financial assets, thus qualifying him for support.

Those facing livelihood difficulties due to crises such as unemployment or business closure can request emergency welfare living support through city, county, or district offices, town or neighborhood community centers, or the Health and Welfare Counseling Center. After consultation and on-site verification, if the applicant meets the income and asset criteria, they can receive support for living and medical expenses.

However, those already receiving support under other laws, such as livelihood benefits or unemployment benefits, are excluded from emergency welfare living support. The Ministry of Health and Welfare explains that this is due to the nature of the system as a last social safety net temporarily supporting low-income households facing sudden crisis situations and struggling to maintain their livelihoods.

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