"If You Receive Local Government Support, What Happens to Livelihood Benefits?"... Ministry of Health and Welfare Discusses the 'Principle of Subsidiarity' in Basic Livelihood Security

Ministry of Health and Welfare and KIHS Hold Basic Livelihood Security Development Forum

Expansion of Local Basic Income Brings 'Principle of Subsidiarity' to the Forefront

The government is embarking on a major overhaul of its public assistance system to guarantee the basic livelihood of its citizens in response to rapid socio-economic changes, such as the expanded adoption of artificial intelligence (AI) and the proliferation of platform-based labor. In particular, with local governments increasing direct cash support—including basic income programs for rural and fishing communities—society has begun earnest discussions on how to apply the "principle of subsidiarity," which underpins the Basic Livelihood Security System.

Scene at the "1st Basic Livelihood Security System Development Forum." Ministry of Health and Welfare.

On the afternoon of March 6, the Ministry of Health and Welfare and the Korea Institute for Health and Social Affairs held the '2nd Basic Livelihood Security System Development Forum' at BnD Partners near Seoul Station, under the theme 'Long-term Development Directions and Operating Principles of the Public Assistance System.' This forum was organized to evaluate the achievements of the past decade following the tailored benefit system reform in 2015, and to design a future vision for the system in preparation for a transition toward a "basic society."

Seeking Alternative Income Security Amid Diversification of Poverty Types

The forum focused on alternative income security systems to address new forms of poverty distinct from the past, including the growing number of working poor, the aging of beneficiaries, and the increase in vulnerable youth populations. Senior Research Fellow Noh Daemyung from the Korea Institute for Health and Social Affairs emphasized the need to establish a new income security system that reflects economic and social changes and proposed reform directions to supplement the limitations of the current system.

Changes are also anticipated for the medical assistance program, which is approaching its 50th anniversary. Research Fellow Yeo Nageum from the Korea Institute for Health and Social Affairs suggested that medical assistance should evolve beyond simply supporting medical expenses to become a system that genuinely guarantees the right to health for vulnerable groups.

Expansion of Local Basic Income... 'Principle of Subsidiarity' Criteria Under the Spotlight

One of the most hotly debated issues at this forum was the redefinition of the "principle of subsidiarity." The Basic Livelihood Security System is based on the premise that beneficiaries must make every effort to utilize their own income and assets, with the state only filling what is insufficient.

However, with the recent increase in public transfer income from local governments and other ministries—such as basic income programs for rural areas—a key issue has emerged: whether these forms of support should be counted as the beneficiary’s income and thus reduce national support payments. Park Minjeong, Director of Basic Livelihood Security at the Ministry of Health and Welfare, underscored the need to establish clear criteria for applying the principle of subsidiarity and shared relevant case studies.

The Ministry of Health and Welfare plans to continue the forum until October, conducting comprehensive discussions on current practices and criteria improvements for each type of benefit, including livelihood, medical, housing, education, and self-reliance. The tasks identified through these discussions will be reflected in the '4th Comprehensive Basic Livelihood Security Plan,' which will commence in 2027 and serve as the system’s mid- to long-term indicators.

Jung Eun-kyeong, Minister of Health and Welfare, stated, "We will do our utmost to faithfully incorporate the experts’ discussions so that we can build a social foundation where the basic livelihood of all citizens is guaranteed."

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