[Second Half Economic Policy] Increase in Livelihood Benefit Eligibility Criteria, Pilot Introduction of Personal Budget System for Disabled

2023 Second Half Economic Policy Direction
Full Support for Semi-basement Flood Prevention Facilities

A water barrier installed on the window of a semi-basement in Gwanak-gu, Seoul. Photo by Jinhyung Kang aymsdream@

The government is strengthening financial support for vulnerable groups as part of welfare for the underprivileged. It will enhance livelihood benefits for low-income households, improve the elderly care system, and promote the personal budget system for persons with disabilities.

On the 4th, the government announced the "2023 Second Half Economic Policy Direction" containing these measures.

To expand support for low-income groups, the government stated it will gradually raise the eligibility criteria for livelihood benefits. Currently, to receive livelihood benefits, one must have an income at or below 30% of the median income. In June last year, when announcing the "New Government Economic Policy Direction," the government declared it would raise this threshold to 35%, and expand the housing benefit eligibility from the current 46% to 50% of the median income.

The government plans to fully cover the installation costs of flood prevention facilities for semi-basement owner-occupied households within the second half of the year. Additional support will be provided for floodgates, operable security insect screens, and flood warning devices.

Youth will be offered opportunities for asset formation and self-reliance support. The Youth Leap Account will be modified to link with existing financial products so that young people can utilize lump sums. Additionally, the tax exemption sunset for the Soldiers' Tomorrow Preparation Savings will be extended, and the subscription period for the Youth Income Deduction Long-term Fund will be prolonged, continuing tax benefits for youth savings. Vulnerable youth requiring self-reliance support will receive reduced fees at psychological counseling centers, and a dedicated support system for them will be established.

For small business owners, the focus is on reducing debt burdens and expanding sales bases. The eligibility criteria for the New Start Fund, which previously supported only COVID-19 affected borrowers, will be relaxed to assist micro small business owners and self-employed individuals in recovery. The sunset for the special VAT deduction system for micro self-employed persons receiving payments via credit cards, etc., will also be extended. To boost sales, the usage scope of Onnuri gift certificates will be expanded.

Furthermore, an integrated medical, nursing, and care assessment system will be introduced for the elderly, and the expertise of care professionals will be strengthened to eliminate blind spots in support. A pilot project for the personal budget system for persons with disabilities, allowing them to choose welfare benefits themselves, and enhanced vocational rehabilitation support for persons with severe disabilities will also commence. Strengthened management of unregistered children, support for opening zero-year-old classes in daycare centers, and phased increases in childcare fees will be actively pursued.