Criteria for Selecting Basic Livelihood Security Recipients to Be Relaxed from Next Year... Maximum Basic Property Deduction Amount 99 Million Won

[Asia Economy Reporter Lee Gwanju] The Ministry of Health and Welfare announced on the 29th that it will relax the asset criteria for the Basic Livelihood Security Program by raising the basic asset deduction amount used as the selection criterion for beneficiaries, effective from January 1 next year.

Under the Basic Livelihood Security Program, households are selected as beneficiaries if their recognized income amount is below a certain percentage of the median income (as of 2023: 30% for livelihood benefits, 40% for medical benefits, 47% for housing benefits, and 50% for education benefits). For a four-person household, the median income for next year is 5.4 million KRW per month, with 30% being 1.62 million KRW, 40% 2.16 million KRW, 47% 2.54 million KRW, and 50% 2.7 million KRW.

When calculating this recognized income amount, the 'basic asset deduction amount' necessary for maintaining basic living and housing conditions is excluded. Therefore, raising the basic asset deduction amount reduces the recognized income amount, effectively relaxing the beneficiary selection criteria.

The basic property deduction amount changing from January 1st next year. [Data=Ministry of Health and Welfare]

First, the basic asset deduction amount, currently applied between 29 million and 69 million KRW depending on the region, will be raised to between 53 million and 99 million KRW. The regional classification will also change from the existing three categories of metropolitan cities, small and medium cities, and rural fishing villages to four categories: Seoul, Gyeonggi, metropolitan areas including Sejong and Changwon, and other regions. This adjustment reflects the rise in housing asset prices and aims to better align the regional classifications and deduction standards with current realities.

The revised basic asset deduction standards can be found in the Ministry of Health and Welfare notice (standards for calculating the asset value of automobiles and the basic asset amount and debts deducted from asset value), which will be amended and implemented on January 1 next year.

Min Youngshin, Director of the Basic Livelihood Security Division at the Ministry of Health and Welfare, stated, "By raising the basic asset deduction amount and thus updating the asset criteria, we expect to contribute to preventing households with no actual income from losing beneficiary status solely due to the increase in the value of their housing assets."

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