Dependent support requirement for severe disability benefits to be abolished next year; basic pension selection criteria also to change

South Korea is set to significantly reform its social welfare system, with plans to abolish the dependent support requirement for livelihood benefits for individuals with severe disabilities starting in the latter half of next year. This move aims to provide greater financial security to a vulnerable population.

The government also intends to restructure the basic pension system, shifting towards a "bottom-up" approach that prioritizes support for low-income elderly individuals. Currently, the system provides benefits to the top 70% of income earners aged 65 and above. The Ministry of Health and Welfare announced these plans during a briefing on its second-half agenda, which includes seven core tasks focused on strengthening the welfare safety net and enhancing national care responsibilities.

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We plan to abolish the dependent support requirement for severe disabilities and the elderly, with the elderly to be phased in by age group starting in 2028.

Further changes include easing the dependent support criteria for medical aid, initially targeting elderly individuals with severe rare diseases and those receiving long-term care. The current system assesses eligibility based on a household's combined income and assets, considering the income and assets of relatives within the first degree of kinship. The ministry plans to simplify these complex criteria, gradually relaxing them to apply the requirement only to relatives with higher incomes or substantial assets.

In addition to these reforms, the government is introducing measures to address financial crises among vulnerable households. Starting next month, a system will be established to connect individuals suffering from high interest rates and debt collection to emergency support through administrative welfare centers. Next year, the emergency welfare system will be revamped to allow local centers to provide immediate small-scale living assistance upon discovering households in crisis. Field officials will also offer "Hope Dream Bundles" containing daily necessities during home visits to at-risk families.

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Basic pension reform is one of the important tasks to be pursued in the second half of this year.