Gwangju City Provides 300,000 Won Support to Bottom 40% Income Bracket for Basic Pension

Gwangju City Hall

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Metropolitan City announced on the 21st that starting this month, the number of elderly people receiving a basic pension of up to 300,000 won per month has been expanded from the bottom 20% income bracket to the bottom 40% income bracket.

This expansion of basic pension support was prepared in accordance with the revised "Notice on the Selection Criteria for Basic Pension Recipients, Standard Pension Amount, and Detailed Standards for Calculating Recognized Income," which has been applied since January this year.

Accordingly, Gwangju City adjusted the timing of raising the standard pension amount, reflecting the inflation rate, from the previous April to January, and increased the basic pension selection criteria amount from 1.37 million won last year to 1.48 million won for single households (from 2.192 million won to 2.368 million won for couple households).

The basic pension selection criteria amount is the income and property threshold for receiving the basic pension. It is adjusted annually reflecting changes in publicly announced property prices, overall household income levels, and inflation rates. If the recognized income is below the selection criteria amount, one is eligible to receive the basic pension.

Gwangju City has secured a total budget of 408 billion won for the basic pension project this year and plans to pay the January basic pension on the 23rd.

The basic pension was introduced in July 2014 to ensure stable retirement income for the elderly. As of the end of 2019, among 195,479 elderly people aged 65 or older, 129,975 (66.5%) were receiving the basic pension.

As of last year, Gwangju City supported a total of 359.5 billion won in basic pensions to about 130,000 elderly people, providing them with a stable income base and contributing to their livelihood stability.

Starting next year, according to government policy, the maximum monthly basic pension payment of 300,000 won will be gradually expanded to cover up to the bottom 70% income bracket.

Lee Pyeong-hyung, Director of the Welfare and Health Bureau of the city, said, “The basic pension is a system designed to alleviate the economic difficulties of our elderly who have worked hard for the country and their children. Although it is challenging to secure the budget due to the annual increase in the basic pension selection criteria amount, we will do our best to ensure support is provided without any setbacks.”