[National Policy Briefing] Child Allowance Expanded to Under 13... Reduced Caregiving Costs for Severely Ill Patients

Building a Fundamental Society That Cares for Citizens' Lives
Lowering Barriers to Livelihood Benefits

The Lee Jaemyung administration will strengthen essential and public healthcare to guarantee the right to health for all citizens and reduce the burden of medical expenses, including caregiving costs for severely ill patients in long-term care hospitals. The eligibility for child allowance will be expanded from the current under-8 age group to include children under 13 by 2030. This reflects the administration's commitment to caring for people's lives and taking responsibility for public health, aiming to build a "society with strong fundamentals."

Namhee Kim, Planning Committee Member of Social Division 1 at the National Policy Planning Committee, is presenting at the National Policy Planning Committee Public Report Conference held on the 13th at the Blue House State Guest House. Photo by Yonhap News

On August 13, the Presidential National Policy Planning Committee unveiled 123 key national policy tasks. In the welfare and population sectors, the tasks include: ▲strengthening the safety net for a basic standard of living; ▲providing integrated care that allows people to receive support where they currently live; ▲improving the quality of life and guaranteeing basic rights for people with disabilities; and ▲creating a favorable environment for childbirth and parenting. In the healthcare sector, tasks include: ▲transitioning to a sustainable healthcare system; ▲reducing regional disparities, expanding essential medical services, and strengthening public healthcare; ▲promoting public health through primary care-based health and caregiving services; and ▲alleviating the burden of medical expenses for citizens.

With the elderly poverty rate exceeding 40%, the government will first work to minimize insecurity in old age and establish a community-based integrated care system. This will include expanding home-based services so that people can maintain a dignified life in their own homes without having to enter facilities or hospitals. The government also plans to reduce the out-of-pocket caregiving costs for severely ill patients in long-term care hospitals-which are currently not covered by health insurance and must be paid in full by patients-to within 30% by 2030.

With the implementation of the state responsibility system for people with developmental disabilities, the eligibility for disability pension will be expanded from the current grades 1 and 2 and overlapping grade 3 disabilities to include single grade 3 disabilities. As a result, the number of disability pension recipients will increase significantly from the current 349,000 to 584,000 by 2030.

The government also plans to ease the burden of child-rearing, strengthen support for children, adolescents, and young adults in crisis, and expand support for childbirth and parenting. The child allowance, which currently provides 100,000 won per month for children under 8, will be expanded to cover children under 13 by 2030, increasing the number of recipients from 2.15 million to 3.44 million. During the same period, the number of households eligible for public childcare services will rise from 120,000 to 145,000.

The government will raise the standard for the basic living security program's livelihood benefit from 32% to 35% of the median income and will fully introduce sickness benefits to ensure that low-income individuals can take time off work when ill.

Plans have also been announced to reform the pension system. Measures include supporting national pension premiums for young people, expanding military service credits, providing childbirth credits in advance, and improving the reduction applied to basic pension benefits for couples where both spouses are recipients (currently a 20% reduction for each). The government will also address the reduction applied to national pension benefits. In particular, the period of military service recognized for national pension coverage (military service credit) will be further extended from the current 6 to 12 months, and childbirth credits will be provided in advance.

Additionally, to guarantee the right to health, the government will improve the compensation system for essential healthcare and pursue innovation and expansion in public healthcare. The plan is to address disparities in medical service provision by region and specialty, and to strengthen local, essential, and public healthcare through measures such as restructuring pediatric and emergency medical systems.

The government also aims to reduce the burden of caregiving and medical expenses for citizens, and to promote public health by strengthening the management of chronic diseases based on primary care-such as diabetes-as well as rare and intractable diseases and mental health.