Daejeon City to Invest 44 Billion Won This Year in Self-Sufficiency Projects for Low-Income Groups

Increase of 2.7%~2.9% in Wage Rates for Self-Support Work

Daejeon City will promote this year's self-sufficiency projects to establish a foundation for low-income groups' independence. / Daejeon Photo by Park Jong-myeong

Daejeon City announced that it will invest 44 billion KRW this year to promote self-sufficiency projects aimed at establishing a foundation for low-income groups to become self-reliant.

The city finalized the 2024 self-sufficiency project support plan, which includes raising wages for self-sufficiency labor and expanding self-sufficiency labor projects, after review by the Social Security Committee.

The self-sufficiency labor projects, operated by 83 business units targeting recipients and near-poverty groups, will invest 27 billion KRW to provide jobs for 2,455 low-income individuals. The wage rates will also be increased by 2.7% to 2.9% depending on the type. As a result, participants in the self-sufficiency projects will receive between 1,460,000 KRW and 1,506,000 KRW per month.

Additionally, to encourage the work motivation of low-income workers and youth, 13.3 billion KRW will be invested in asset-building support projects that provide monthly matched savings of 100,000 to 300,000 KRW. Through eight asset-building savings account programs, including the Youth Tomorrow Savings Account, 7,202 people will be supported to establish a foundation for independence.

Using the established self-sufficiency fund, the city will support the successful operation of self-sufficiency enterprises and expand scholarship programs. A budget of 700 million KRW has been allocated for rental deposits and business loans for self-sufficiency enterprises with high profitability and startup potential, supported at a fixed annual interest rate of 1%.

Scholarships will also be awarded to 40 outstanding middle and high school students, university students, and out-of-school youth from low-income families such as basic livelihood recipients and legally defined near-poverty groups, with each receiving between 500,000 and 1,000,000 KRW.

Those with work ability who are recipients or near-poverty groups with middle-income levels at 50% can inquire about self-sufficiency projects at district self-sufficiency centers or district offices and dong administrative welfare centers.

As of the end of last year, Daejeon City had 20 self-sufficiency enterprises employing a total of 100 people, with annual sales of approximately 5.32 billion KRW. These enterprises operate in various sectors such as home repair, cleaning and disinfection, car washing, cafes, convenience stores, and lunchbox businesses.

Min Dong-hee, Director of the Welfare Bureau of Daejeon City, stated, “We will strive to promote effective self-sufficiency labor projects targeting vulnerable groups with work ability to establish a stable and sustainable foundation for independence.”

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