[News Terms] Seoul Mayor Oh Se-hoon's Welfare Experiment 'Ansim Income'

[Asia Economy Reporter Kim Jong-hwa] 'Ansim Income' is a project by the Seoul Metropolitan Government that provides cash support at a certain rate for the shortfall to households whose income falls below a certain amount. Launched as a pilot project on July 11 last year under the campaign promise of Seoul Mayor Oh Se-hoon, it is an income guarantee system of the 'Ha-hu-sang-bak' type, which supports more for those with lower income, unlike 'Basic Income' which pays the same amount to everyone.

In the first phase of the project last year, 500 households with income below 50% of the median income and assets below 326 million KRW were selected for support over three years. This year, an additional 1,100 households with income exceeding 50% but below 85% of the median income and assets below 326 million KRW will be selected for support over two years.

Seoul Mayor Oh Se-hoon is taking a commemorative photo after signing an agreement with participating households at the launch ceremony of the 'Seoul Basic Income Pilot Project' in July last year.
[Photo by Yonhap News]

The Ansim Income payment amount is 50% of the difference between the 85% median income standard and the household income. For a single-person household with no income, the 85% median income in 2023 is 1,766,208 KRW, so they will receive half of that, 883,110 KRW, every month. A two-person household will receive half of the 85% median income standard (2,937,732 KRW), which is 1,468,870 KRW. A three-person household will receive half of 3,769,594 KRW, which is 1,884,800 KRW, and a four-person household will receive half of 4,590,819 KRW, which is 2,295,410 KRW monthly.

The Seoul Metropolitan Government plans to separately select 2,200 comparison households that do not receive Ansim Income to conduct comparative analysis. Based on these results, they will decide whether to adopt Ansim Income as an official welfare policy of Seoul.

On the 13th, in a dialogue with Muhammad Yunus, chairman of the Yunus Foundation, Mayor Oh said, "We are considering Plan B in case Ansim Income does not go as planned," adding, "We are thinking of trying new experiments like the successful microcredit by Chairman Yunus." This implies that in addition to the Ansim Income pilot project, they may explore new welfare models such as the 'Microcredit' successfully implemented by Chairman Yunus.