Basic Livelihood Security Selection Criteria Clash: "Income vs Expenditure"... Government Discusses System Reform

3rd Basic Livelihood Security System Development Forum Held
Active Discussions to Lay the Foundation for System Improvements

The government has discussed system improvements regarding the selection criteria that determine the "threshold" for national basic livelihood security. Experts engaged in heated debates over whether to further develop the current "standard median income" system, which is based on the concept of relative poverty, or to return to a "minimum cost of living" standard focusing on alleviating absolute poverty.

The scene during the first Basic Livelihood Security System Development Forum in January. Ministry of Health and Welfare.

On April 17, the Ministry of Health and Welfare and the Korea Institute for Health and Social Affairs held the "3rd Basic Livelihood Security System Development Forum," presided over by First Vice Minister Lee Seuran, to discuss rational reform directions for public assistance selection criteria. The forum centered on two key perspectives: "income (standard median income)" and "expenditure (minimum cost of living)."

Kang Shinwook, Senior Research Fellow at the Korea Institute for Health and Social Affairs, who was the first presenter, emphasized the purpose behind adopting the "standard median income" as the relative poverty line. Kang insisted that welfare should ensure an adequate standard of living by reflecting changes in the overall income level of society and proposed improvements to the current method for calculating the standard median income.

In contrast, Kim Migon, Visiting Research Fellow at the Korea Institute for Health and Social Affairs, made it clear that the essence of public assistance lies in "alleviating absolute poverty." Kim argued that the system should be reformed based on the minimum cost of living, in order to guarantee a practical standard of living for recipients without discouraging their motivation to work.

The government fully shifted the selection criteria from the minimum cost of living to the standard median income in 2015 with the introduction of customized benefits. Currently, the standard median income is widely used as a criterion not only for basic livelihood security programs such as livelihood, medical, housing, and educational benefits, but also for more than 80 projects across 14 ministries, including the National Scholarship Program and child care services.

The Ministry of Health and Welfare plans to use the issues identified through "Gibalpo" (the Basic Livelihood Security System Development Forum), which has been operating since January this year, as the foundation for system improvements. In particular, the selection criteria reform measures discussed at this forum will be reflected as key tasks in the "4th Comprehensive Basic Livelihood Security Plan (2027–2029)," which is scheduled to be announced in the second half of this year.

Vice Minister Lee Seuran emphasized, "The selection criteria are a critical factor in ensuring the public's basic standard of living," adding, "Based on the discussions, we will seek a rational reform direction that balances benefit security and the sustainability of public finances."

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