[Public Voices] The Basic Livelihood Security System: Broad Protection Starting with the Most Vulnerable

At the Central Basic Livelihood Security Committee meeting held on the 19th, the government presented a three-year blueprint for the National Basic Livelihood Security System, the final social safety net of our society. The development directions outlined in the "3rd Comprehensive Plan for the Basic Livelihood Security System (2024?2026)" can be summarized into three main points.

First, the scope of beneficiaries and the level of benefits under the Basic Livelihood Security will be further expanded. In addition to raising the median income standard, which serves as the basis for calculating the minimum cost of living, to record highs in both 2022 and 2023, the eligibility criteria for livelihood benefits and housing benefits will be expanded from 30% to 32% and from 47% to 48% of the median income, respectively. As a result, next year, livelihood benefits for a four-person household will increase by 13.16%, providing a maximum additional monthly support of 213,000 KRW. The standard rent for housing benefits will be adjusted to reflect regional rental differences, and education benefits will also be raised to 100% of the minimum education cost. Furthermore, the home-based medical benefit program, which supports medical care, caregiving, meals, and housing at home, will be expanded nationwide.

Second, multifaceted institutional improvements will be pursued to eliminate blind spots in poverty. The support obligation criteria remaining in medical benefits will be gradually relaxed, starting with those with high medical needs. From 2024, households receiving medical benefits that include persons with severe disabilities will no longer be subject to the support obligation criteria, allowing over 50,000 people to newly benefit. A particularly notable change is the improvement in the income conversion rate for automobiles, which had been criticized as problematic in calculating recognized income. Currently, automobiles are considered as 100% of their value as monthly income. Starting next year, one commercial-use vehicle under 2000cc will not be counted as income. For multi-child beneficiary households (households with six or more members or with three or more children), the general property conversion rate (4.17%), previously applied only to passenger cars under 1600cc, will be relaxed to include vehicles under 2500cc. Additionally, the income conversion rate applied to residential property (1.04% per month) will be gradually reduced by 2026.

Third, to encourage beneficiaries with work capacity to actively become self-reliant and escape poverty, the current 30% income deduction level will be further expanded, and the number of asset-building beneficiaries will increase from a cumulative 113,000 to 150,000. From 2024, earned and business income of young people will be more broadly protected. The current additional deduction of 400,000 KRW for youth aged 24 and under will be extended to those under 30, benefiting approximately 48,000 more people. Moreover, for single-parent youth aged 24 and under, the deduction amount will be increased by 200,000 KRW to a total of 600,000 KRW, after which 30% of the remaining amount will be deducted. This is equivalent to the income deduction for youth preparing for independence and is a special support measure for young people facing difficult circumstances.

The "3rd Comprehensive Plan for the Basic Livelihood Security System" reflects the strong national policy will of the Yoon Seok-yeol administration to provide thicker protection starting with the "most vulnerable" in our society. Strengthening the final social safety net, which guarantees a dignified life for our citizens under any circumstances, is a welcome policy direction as it provides security not only to those currently in poverty receiving direct benefits but also to all citizens at risk of falling into poverty. However, since the National Basic Livelihood Security System is a retrospective safety net for already impoverished citizens, it is important to keep in mind that sound development of this system is possible only when the primary social safety net?ensuring job security in the labor market and preemptive protection from various social risks?is solid. This is the true meaning of robust welfare starting with the vulnerable.

Seok Jae-eun, Professor, Department of Social Welfare, Hallym University

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