Seoul Basic Security System Livelihood Benefits Up to 7.2% Higher... "Stronger Support for Vulnerable Groups"

Strengthening the "Seoul Basic Security System" to Support Those Falling Through the Cracks
Expansion of Youth Income Deduction... Relaxed Automobile Asset Criteria

The Seoul Metropolitan Government is strengthening the "Seoul Basic Security System" to better protect vulnerable groups. This system is a policy in which the city provides livelihood, childbirth, and funeral benefits to citizens who are struggling financially but do not meet the criteria for the National Basic Livelihood Security System and therefore cannot receive support.

Seoul City Hall Archive Photo

Last year, the Seoul Basic Security System newly supported 2,770 households (a total of 3,789 people). The main changes to the system this year include: ▲ an increase in the amount of livelihood benefits ▲ expansion of the applicable age and earned/business income deduction for young people ▲ and relaxed automobile asset criteria.

The monthly livelihood benefit amount has increased by up to 7.2% for single-person households (from 382,730 won to 410,280 won, an increase of 27,550 won), and by up to 6.5% for four-person households (from 975,650 won to 1,039,160 won, an increase of 63,510 won).

To actively encourage economic activity among young people who have a high potential to exit the system through employment or entrepreneurship, the age limit for the earned/business income deduction for youth has been raised from 29 years old or younger to 34 years old or younger, and the deduction amount has been increased from 400,000 won to 600,000 won.

The scope of essential vans and trucks for business, to which the general asset conversion rate (4.17%) applies, has also been relaxed. Previously, the criteria were vehicles with engine displacement under 1,000cc and over 10 years old, or with a value under 2 million won. Now, the criteria have changed to small or smaller vans/trucks that are either over 10 years old or valued under 5 million won.

The eligibility for applying the general asset conversion rate to passenger cars for families with multiple children has also been eased, lowering the threshold from three children to two or more children.

The Seoul Basic Security System, along with customized livelihood and housing benefits, can be applied for at any time at the local community service center. After an income and asset investigation by the district office, eligibility is determined, and the result is individually notified in writing to the applicant.

Once selected as a beneficiary, the recipient will regularly receive livelihood benefits on the 25th of every month. In addition, to protect beneficiary rights, a childbirth benefit of 700,000 won per child is provided upon the birth of a child, and a funeral benefit of 800,000 won is provided upon the death of a beneficiary.

The selection criteria for the Seoul Basic Security System are as follows: ▲ not being a beneficiary of the National Basic Livelihood Security System ▲ having an assessed income of 48% or less of the median income (for single-person households, 1,230,834 won or less) ▲ and having assets of 155 million won or less per household (or 254 million won or less if including residential property).

Applicants are excluded if their financial assets exceed 36 million won, if they own a vehicle to which a 100% income conversion rate applies, if their obligor's annual income exceeds 130 million won, or if their obligor's general assets exceed 1.2 billion won.

The Seoul Basic Security System determines beneficiaries by separately evaluating assessed income and asset criteria. This has the advantage of providing more robust protection for vulnerable groups compared to the National Basic Livelihood Security System, which selects recipients based on the "recognized income"-the sum of assessed income and the income-converted value of assets.

Yoon Jongjang, Director of Welfare at the Seoul Metropolitan Government, stated, "The selection criteria for the Seoul Basic Security System have been eased to support a greater number of vulnerable people," and added, "We will continue to pursue a variety of policies to build a more comprehensive welfare safety net, not only through the Seoul Basic Security System but also through other measures."