Even with Assets of 250 Million Won, Basic Livelihood Benefits Are Provided... Seoul City Expands Basic Security Coverage

Considering high inflation, high interest rates, and COVID-19
Property limit expanded from the existing 155 million won

From this month, the selection criteria for the 'Seoul-type Basic Security' will be relaxed. People with assets worth 254 million KRW may be able to receive livelihood benefits from the Seoul Metropolitan Government depending on their circumstances.

The Seoul Metropolitan Government announced on the 3rd that it will ease the selection criteria for the Seoul-type Basic Security system from this month to broadly respond to the worsening economic situation of citizens due to high inflation, high interest rates, and COVID-19.

The Seoul-type Basic Security system, which started in 2013, is a program where Seoul supports the poor who do not meet the legal criteria and are therefore not eligible for government assistance, by providing livelihood, childbirth, and funeral benefits.

From this month, Seoul has relaxed the asset and income criteria and introduced a financial asset deduction for households raising children.

Residential assets such as owned houses, jeonse (long-term deposit rental), and monthly rent with deposit are deducted up to 99 million KRW per household. This is intended to reduce cases where households are excluded from support simply because they own a house despite having no actual income. Accordingly, the asset limit has increased from the previous 155 million KRW to 254 million KRW, allowing more households to receive support.

The deduction rate for earned and business income has been expanded from 30% to 40%. A higher deduction rate lowers the assessed income, enabling recipients to receive more benefits provided by the Seoul Metropolitan Government.

Households raising children under the age of 19 can deduct up to 10 million KRW in financial assets per child. Seoul stated, "There have been criticisms that the financial asset criteria were too strict and hindered the savings of beneficiaries, so we introduced a financial asset deduction."

Earlier, from January this year, Seoul relaxed the income criteria for the Seoul-type Basic Security system from 46% or less to 47% or less of the median income and also increased the livelihood benefit amount by 5.47%.