Jin Jinsuk: "Government's Welfare Exit Policy Is Ineffective"

Failing to Provide Meaningful Support for Self-Reliance, Rendering the System Ineffective
"Directly Linked to Public Welfare...Urgent Need for Overhaul"

Jin Jinsuk, member of the Democratic Party of Korea.

Criticism has been raised that the government's "welfare exit policy" is failing to provide meaningful support for the self-reliance of low-income individuals with work capacity.

Jin Jinsuk, a member of the Democratic Party of Korea (representing Gwangju Buk-gu Eul), pointed out during the National Assembly audit of the Korea Self-Sufficiency and Welfare Development Institute on October 28 that the current welfare exit support system does not adequately reflect reality.

According to data submitted to Assemblywoman Jin by the Ministry of Health and Welfare, as of 2024, there were approximately 125,000 conditional beneficiaries with work capacity, but only 37,744 people participated in self-sufficiency projects, accounting for just 30.1% of the total. In particular, only 14,588 people successfully exited the basic livelihood benefit system and achieved self-reliance, representing just 11.6% of all conditional beneficiaries, revealing the system's very low effectiveness.

The "Hope Savings Account I" program, designed to help beneficiaries build assets and exit welfare, was also not free from criticism regarding its effectiveness. In 2024, only 2,962 households joined the program, continuing a downward trend, while the early termination rate rose to 13.4%. Notably, of the 2,134 households that terminated their accounts early, 1,832 households (85.8%) did so because they "voluntarily gave up." Assemblywoman Jin criticized this, stating, "The program, which was created to provide incentives for welfare exit, is ironically causing people to give up due to fear of losing their basic livelihood benefits."

According to the "2024 Korea Welfare Panel Survey" by the Korea Institute for Health and Social Affairs, the greatest burdens felt by beneficiaries upon exiting welfare were medical expenses (65.8%) and housing costs (31.8%). Assemblywoman Jin pointed out that "while medical benefits can be maintained for up to five years as a special provision for self-sufficiency recipients, basic livelihood benefits are immediately discontinued under the current system. This structure undermines the motivation to work and the willingness to exit welfare among beneficiaries." She explained that this paradoxically creates a situation where starting work makes recipients' livelihoods even more unstable.

Assemblywoman Jin called on the Ministry of Health and Welfare and the Korea Self-Sufficiency and Welfare Development Institute to introduce a grace period for basic livelihood benefits and to enhance the effectiveness of the "Hope Savings Account I" program by adjusting the amount of support to better reflect reality. She particularly emphasized that the current monthly matching support of 300,000 won does not function as a real incentive for self-reliance, and urged that the system be reformed to focus on improving work continuity and asset accumulation rather than simply increasing the number of participating households.

Meanwhile, Assemblywoman Jin stated, "Policies directly related to public welfare must not remain mere administrative formalities," and demanded that these improvement measures be specifically reflected in the 2026 budget and that progress be reported to the National Assembly.

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