Nobel Laureate in Economics Discusses "Didimdol Income"
Pilot Project Concludes as Discussions Begin for Institutionalization
Consistency Research Revealed: "Toward a Future-Oriented Income Security System"
Discussions are underway to establish Seoul Mayor Oh Se-hoon's flagship social welfare policy, "Didimdol Income," as a future-oriented income security system. This event serves as an opportunity to evaluate the results of the pilot project that Mayor Oh has dedicated the past three years to and to seek its institutionalization.
According to the Seoul Metropolitan Government on November 5, the "International Didimdol Income Forum," featuring James Robinson, a professor at the University of Chicago and the recipient of the 2024 Nobel Prize in Economics, will be held in Seoul next month.
Seoul Mayor Oh Se-hoon is talking with participants at the "Didimdol Income Participating Households Meeting." Seoul City
Didimdol Income is Seoul's income security experiment, targeting households with less than 85% of the median income (and assets below 326 million won), by supplementing the shortfall in household income compared to the median. It is designed as a progressive system where those with lower incomes receive more support. From July 2022 to June 2024, a total of 2,076 households received benefits, and Seoul will continue performance evaluation research through 2026.
The forum, planned as part of these efforts, will explore new directions for welfare systems alongside research related to Didimdol Income. In particular, James Robinson, professor at the University of Chicago, will deliver a keynote speech on "Inclusive Institutions: The Social Foundation for Sustainable Prosperity," in which he will evaluate the Didimdol Income program. The comprehensive results from the three-year pilot project will also be released.
The Seoul Metropolitan Government maintains that nationwide adoption of Didimdol Income is necessary to address polarization and inequality. According to internal research, integrating Didimdol Income with 36 existing welfare programs-including basic living allowances and the basic pension-would enable the creation of an efficient welfare system.
The core feature of Didimdol Income lies in its design, which allows recipients to maintain eligibility even if their income exceeds the threshold, thereby not discouraging work incentives. Over the course of the three-year income experiment, the exit rate-households whose income surpassed 85% of the median and no longer needed Didimdol Income-was 8.6%. Additionally, 31.1% of households saw an increase in earned income.
The forum will also present in-depth research on the consistency of Didimdol Income. This includes analysis of the required budget and effects if the program is expanded nationwide, with target groups segmented as follows: households earning up to 65% of the median income (high-risk poverty group), up to 75% (at-risk poverty group), and up to 85% (low-income insecure group). Previously, the Seoul Metropolitan Government estimated that integrating Didimdol Income with ten programs-including basic living and self-sufficiency allowances under the National Basic Livelihood Security System, the National Employment Support Program, and local government supplementary benefits-would require at least an additional 13 trillion won in funding.
Seoul plans to develop an experimental model for nationwide expansion of Didimdol Income, conduct further research on establishing a Didimdol Income-social service delivery system, ways to enhance work incentives, and strategies for gradually securing welfare resources. Customized implementation models for local governments are also under discussion. Yoon Jongjang, Director General of Welfare at the Seoul Metropolitan Government, stated, "For the system to take root, it must be validated both in practice and academically," adding, "Through comprehensive review, we will design Didimdol Income as a future-oriented income security system."
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