[Inside Chodong] Ending "Welfare You Can't Receive If You Don't Know About It"

"The application-based welfare system is extremely cruel. If you don't apply, you don't receive support, and people die because they can't get help."

After President Lee Jaemyung ordered a review of measures to change the system so that welfare recipients, including the poor and vulnerable groups, can automatically receive benefits, the Ministry of Health and Welfare and other related agencies are busy preparing improvement plans. While some see this as a strong commitment by the President to resolve the recurring tragedies of welfare blind spots and as an opportunity to change the paradigm of national welfare policy, there are also concerns that it will not be easy to find practical solutions.

Welfare services in South Korea are based on an application-based system, where beneficiaries must apply to receive benefits. There are 367 types of government-supported welfare allowances and services, and when including welfare benefits provided by local governments, the total exceeds 5,300 types. For most of these, applicants must go through a direct application process. The rationale is that citizens should be aware of their rights and choose to receive benefits themselves, which also helps prevent fraudulent claims and allows the government to manage its limited budget efficiently.

For example, to receive basic living support, applicants must visit their local community center or apply online, submitting documents such as a family relationship certificate, housing lease contract, and proof of assets. Their income and assets are then reviewed to determine eligibility. During this process, authorities verify personal income and bank accounts, and may require consent to access family members' financial information to confirm family relationships.

The problem is that even those in extreme poverty, whose livelihoods are at risk, can be excluded from welfare services if they do not apply themselves. Vulnerable groups with low access to information, such as elderly people living alone or isolated and reclusive youth, often do not know what support is available to them or how to apply. Many also find it difficult to fill out application forms and obtain necessary documents. Those who have been struggling in isolation for a long time may fear the stigma of proving their poverty and being labeled as welfare recipients, or may lack the motivation to apply altogether. As a result, "welfare you can't receive if you don't know about it" is even harsher for the poor, the sick, and the marginalized.

On the other hand, for an automatic payment system?the opposite of the application-based model?to be realized, the government would need to have transparent access to all citizens' income and asset information. It is not easy to obtain consent for the provision of personal information, and there must also be monitoring to prevent people from hiding assets or income and abusing welfare through loopholes. It is difficult to identify those who, despite having no apparent issues on paper, are experiencing unexpected hardships in real life. Not only would the government budget need to increase, but the welfare workforce would also need to be expanded, further burdening social welfare officials who are already overwhelmed with excessive work.

The encouraging aspect is that, just as crisis signals such as overdue health insurance premiums or utility cutoffs are used to identify households in need, more big data and artificial intelligence (AI) can be utilized in the future to select and support welfare recipients. There is also consideration of converting universal benefits such as parental allowances or child benefits to automatic payment first, then expanding to other welfare programs. If benefits are provided even without an application, this could change the public's perspective and sense of empowerment. As the presidential office explained, this is a "major shift that makes the government responsible for identifying and providing for welfare recipients." Now is the time for government agencies, experts, and the private sector to work together to establish an efficient welfare delivery system that works effectively on the ground.