Standard Median Income Up 6.09%... Monthly Income for 4-Person Household Below 1.83 Million Won Eligible for Livelihood Benefits

Increase of 32% in the Standard Median Income for Livelihood Benefit Eligibility
100,000 More People Benefit from Livelihood Benefits Due to Median Income Adjustment
'Welfare Standard Line' Raised by the Largest Margin for Two Consecutive Years

The 'standard median income' for next year, which is the selection criterion for welfare beneficiaries, has been increased by 6.09% for a 4-person household compared to this year. For a single-person household, which accounts for 73% of beneficiary households, it rises by 7.25%. Accordingly, from January next year, a 4-person household eligible for the National Basic Livelihood Security living allowance must have a monthly income less than 1,833,572 KRW, and a single-person household must have a monthly income less than 713,102 KRW. As of June, there are 1.59 million recipients of the National Basic Livelihood Security living allowance, and about 100,000 additional people will benefit due to the adjustment of the standard median income for next year. The government estimates that welfare finances will require an additional 2 trillion KRW annually (including local government expenses).

On the 28th, the Ministry of Health and Welfare held the 70th Central Livelihood Security Committee and announced that the 2024 standard median income and the selection criteria and minimum guarantee levels for each benefit were decided as such. The increase rate (raise) of the standard median income decided on this day is the highest since the transition to the customized benefit system in 2015. Minister Cho Kyu-hong of the Ministry of Health and Welfare said, "The standard median income for next year was decided by applying the highest increase rate of 6.09% since the transition to the customized benefit system in 2015, despite difficult domestic and international economic conditions, in line with the current government's policy to strengthen welfare for the vulnerable," adding, "As support for vulnerable groups is significantly strengthened, I hope the living conditions of low-income households improve amid the difficult economic situation."

The standard median income is the median value of household income nationwide, referring to the income of the household in the middle when all domestic households are lined up in order of income. The standard median income is used as the selection criterion for 73 projects across 13 ministries, including the Basic Livelihood Security system. The standard median income for next year is calculated by applying the basic increase rate and additional increase rate to the previous year's standard median income. The basic increase rate of 3.47% was applied considering the average increase rate of median income from the last three years of the Household Financial Welfare Survey and the stabilization trend of consumer price inflation. Additionally, an additional increase rate of 2.53% (based on a 4-person household) was applied to close the gap between the Household Financial Welfare Survey median income and the standard median income.

The standard median income for next year was decided as 5,729,913 KRW for a 4-person household, a 6.09% increase from this year's 5,400,964 KRW. For a single-person household, it was raised by 7.25% to 2,228,445 KRW from this year's 2,077,892 KRW. For 2-person households, it is 3,682,609 KRW; 3-person households, 4,714,657 KRW; 5-person households, 6,695,735 KRW; and 6-person households, 7,618,369 KRW.

The Central Livelihood Security Committee also finalized the selection criteria and minimum guarantee levels for each benefit next year. The selection criteria for each benefit are determined by applying a certain percentage to the standard median income. The living allowance selection criterion for next year was raised from 30% of the standard median income in 2023 to 32% for the first time in seven years since 2017, in order to fulfill the national task of "gradually raising to 35% of the standard median income." Housing benefits were increased from 47% in 2023 to 48% of the standard median income. Medical benefits and education benefits remain unchanged at 40% and 50% of the standard median income, respectively. For a 4-person household, the selection criteria for each benefit are as follows: living allowance 1,833,572 KRW, medical benefit 2,291,965 KRW, housing benefit 2,750,358 KRW, and education benefit 2,864,956 KRW or less.

The living allowance is paid at a level that guarantees a minimum standard of living. If income is below the standard, the government supplements the shortfall with benefits. The maximum benefit amount increased from 1,620,289 KRW this year to 1,833,572 KRW (13.16%) in 2024 for a 4-person household, and from 623,368 KRW this year to 713,102 KRW (14.40%) in 2024 for a single-person household. This is the highest level ever.

Medical benefits continue to cover the full amount of medical expenses for eligible items, excluding the recipient's co-payment. Medical benefits are available for households with a monthly income of 2,291,965 KRW for a 4-person household. Type 1 medical benefit recipients without working ability receive free hospitalization and pay 1,000 to 2,000 KRW for outpatient treatment. Type 2 recipients with working ability pay 10% of hospitalization costs, 1,000 KRW at local clinics for outpatient care, and 15% at hospitals or higher-level medical institutions.

Housing benefits target households with a monthly income of 2,750,358 KRW or less for a 4-person household. The upper limit for rental benefits for tenant households was raised by 11,000 to 27,000 KRW (3.2% to 8.7%) by region and household size compared to this year. For owner-occupied households, housing repair costs remain the same as this year, ranging from 4.57 million KRW to 12.41 million KRW depending on the degree of housing deterioration.

Education benefits are available for households with a monthly income of 2,864,956 KRW or less for a 4-person household. For low-income students, the 'education activity support fund,' which can be used at the individual's discretion, is provided as 461,000 KRW for elementary school, 654,000 KRW for middle school, and 727,000 KRW for high school students. This was raised to 100% of the minimum education cost. For high schools not covered by free education, entrance fees, tuition, and textbook costs are reimbursed at actual cost.

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