Next Year Median Income Up 5.47%... Monthly Income Below 1.62 Million Won for 4-Person Household Qualifies for Livelihood Benefits (Comprehensive)

Medical Benefits Paid Up to 2.16 Million Won, Housing Benefits Up to 2.53 Million Won, and Education Benefits Up to 2.7 Million Won

The 'standard median income' for next year has been increased by 5.47% compared to this year. Accordingly, next year, a household of four with a monthly income of 1,620,289 KRW or less will be eligible to receive livelihood benefits.

The Ministry of Health and Welfare announced on the 29th that it held the 68th Central Living Security Committee meeting and deliberated and approved the 2023 standard median income, selection criteria for each benefit, and minimum guarantee levels.

The standard median income refers to the median value of national household income and is used as the selection criterion for recipients in 76 welfare programs across 12 ministries, including the Basic Livelihood Security Program.

The standard median income for next year was finalized to increase by 5.47% compared to this year by applying a basic increase rate of 3.57% and an additional increase rate of 1.83% due to the use of household financial welfare survey statistics and household equivalence scales. A Ministry of Health and Welfare official explained, "Despite difficult domestic and international economic conditions, in line with President Yoon Suk-yeol administration's policy direction to provide dense and substantial support to low-income groups, this is the highest increase rate since the transition to a customized benefit system in 2015."

Accordingly, the standard median income for a household of four increased from 5,121,080 KRW this year to 5,400,964 KRW next year. For a single-person household, which accounts for more than 70% of beneficiary households, the increase is 6.48%, rising from 1,944,812 KRW this year to 2,077,892 KRW next year.

The median income for a two-person household is set at 3,456,155 KRW, for a three-person household 4,434,816 KRW, for a five-person household 6,024,515 KRW, and for a six-person household 6,907,004 KRW.

The budget required due to the increase in the standard median income is estimated to exceed 600 billion KRW annually for livelihood benefits.

Housing Benefit Selection Criteria Expanded from 46% to 47% of Standard Median Income

Next year, livelihood benefits will be provided when household income is 30% or less of the median income, and medical benefits when it is 40% or less. Housing benefits are provided to those with 47% or less, and education benefits to those with 50% or less.

Livelihood benefits are provided at a level that guarantees minimum living standards. If income is below the standard, the government supplements the shortfall with benefits.

The maximum benefit amount for a household of four increased from 1,536,324 KRW this year to 1,620,289 KRW, and for a single-person household from 583,444 KRW to 623,368 KRW. The actual livelihood benefit amount provided to each household is the difference between the selection criterion amount and the household's recognized income. For example, a four-person household with an income of 620,000 KRW can receive about 1,000,000 KRW, the difference from the maximum benefit, and if the income is zero, the full maximum benefit is received.

Medical benefits are provided by covering the full amount of medical expenses excluding the beneficiary's co-payment. Next year, a household of four with a monthly income of 2,163,860 KRW or less will be eligible.

Type 1 medical benefit recipients without work ability have free hospitalization, and outpatient treatment costs range from 1,000 to 2,000 KRW. Type 2 recipients with work ability pay 10% of hospitalization costs, 1,000 KRW for outpatient visits at local clinics, and 15% at general hospitals.

The housing benefit selection criteria will be expanded from 46% to 47% of the standard median income starting next year. For a household of four, those with a monthly income of 2,538,453 KRW or less will be eligible, resulting in housing cost support for approximately 140,000 additional households compared to this year. Also, the 'standard rent for rental households,' which is the upper limit for rental benefits, will be increased by fully reflecting the market rent increase.

Housing benefits vary by region. The maximum benefit for a household of four is 510,000 KRW in Seoul (Grade 1), 394,000 KRW in Gyeonggi and Incheon (Grade 2), 313,000 KRW in metropolitan cities and Sejong City (Grade 3), and 256,000 KRW in other areas (Grade 4). For example, if a beneficiary lives in a 600,000 KRW monthly rent house in Seoul, the government pays 510,000 KRW, and the beneficiary pays the remaining 90,000 KRW.

Households that own their homes without renting can receive support ranging from 4,570,000 KRW to 12,410,000 KRW depending on the scale and duration of home repairs.

'Educational Activity Support Fund' in Education Benefits Increased by 23.3% Compared to This Year

Education benefits are available to households with a monthly income of 2,700,482 KRW or less for a household of four. The Ministry of Health and Welfare explained that the 'educational activity support fund,' which individuals can use autonomously within education benefits, was increased by 23.3% compared to this year to assist low-income students struggling with learning during the COVID-19 period.

Accordingly, elementary school students eligible for education benefits receive 451,000 KRW, middle school students 589,000 KRW, and high school students 654,000 KRW annually as educational activity funds. High school students also receive full coverage for textbooks, entrance fees, and tuition included in the regular curriculum.

Cho Kyu-hong, the first vice minister of the Ministry of Health and Welfare, said, "I hope that the difficult situation caused by inflation and COVID-19 will be overcome quickly and that the lives of low-income groups will improve next year. I also hope that the increase in the standard median income for next year, which serves as the basis for the Basic Livelihood Security Program and various welfare projects, will be of some help."

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