Sanghoon Ahn, Senior Executive: "Advance Service Welfare Sector Led by Private Sector"
Will Implement Welfare for Vulnerable Groups, Not Populist Welfare

[Image source=Yonhap News]

[Image source=Yonhap News]

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[Asia Economy Reporter Ki-min Lee] On the 15th, the Presidential Office stated, "Establishing the foundation for a sustainable Korean-style welfare state is the mission of the Yoon Seok-yeol administration," and presented a direction to implement welfare policies focused on protecting vulnerable groups rather than populist welfare in the future.


This involves adjusting thousands of overlapping welfare policies and concentrating cash welfare on those who cannot work or have low income even if they do work. Additionally, the plan is to resolve rigidity and advance service welfare sectors such as care, nursing, education, and health by promoting private sector leadership.


On the same day, Ahn Sang-hoon, Senior Secretary for Social Affairs at the Presidential Office, said at a briefing held at the Yongsan Presidential Office, "Due to the introduction of various welfare systems since 2000, expenditures in related fields have surged."


He explained that the indiscriminate introduction of cash welfare systems favorable for votes amid political excess and populism has resulted in chronic deficits and excessive debt. He compared national models that succeeded in shifting to vulnerable-centered welfare through rational discussions involving national and citizen participation, stating, "Overcoming the low birthrate and aging society in the era of the Fourth Industrial Revolution and establishing a sustainable Korean-style welfare state foundation is an important task that the Yoon Seok-yeol administration regards as its historic mission."


He continued, "Since increased welfare spending inevitably leads to higher public burdens, it is essential to carefully and efficiently manage only the necessary welfare." He added, "The core is to solidify cash welfare focused on vulnerable groups who cannot work or whose income is insufficient even if they work, and to advance service welfare sectors such as care, nursing, education, employment, and health, where nationwide demand is clearly confirmed, through private sector leadership."


Ahn emphasized, "The service jobs created through this will function as a reservoir of decent jobs for labor market vulnerable groups. We will establish a virtuous cycle of growth through employment. This is the essence of the sustainable Korean-style welfare state that the Yoon Seok-yeol administration pursues with a sense of mission."


He particularly noted, "The welfare philosophy of the Yoon Seok-yeol administration is thoroughly reflected in the new government's national agenda and next year's budget proposal," adding, "Despite the tight fiscal policy aimed at slimming down the bloated government budget, the budget was prepared under the principle of properly supporting only the most vulnerable groups."


Specifically, "The overall welfare expenditure growth rate was increased to 5.6%, higher than this year's 5.4%, focusing support on low-income groups, persons with disabilities, vulnerable youth, the elderly, adolescents, and children." He said, "Next year's budget for this sector has been significantly expanded from 65.7 trillion won this year to 74.4 trillion won. Of the 9 trillion won available resources of the central government in next year's budget, 97% will be invested in welfare for the vulnerable."


Ahn, who mentioned President Yoon’s visits to welfare centers, self-reliance support agencies, and volunteer work at free meal services for socially vulnerable groups, evaluated, "These places are examples where the private sector actively participates and, in cooperation with the government, has advanced and expanded welfare services for the vulnerable."


He emphasized, "President Yoon promised to change welfare from vote-winning welfare to welfare that provides fair opportunities to the vulnerable who find it difficult to voice their opinions."



Ahn added, "Another important task for realizing welfare for the vulnerable is to consolidate the current patchwork welfare system, which is fragmented into hundreds or thousands of overlapping and missing parts, making it difficult to even know who is eligible for what welfare." He said, "We will strengthen the social security policy coordination function and promptly establish an integrated management system for planning, operating, and evaluating the system."


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

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