South Korea to shift social security to universal welfare model

South Korea's government announced a significant shift in its social security policy, moving away from a focus on targeted support for vulnerable populations towards a universal welfare system designed to benefit all citizens throughout their lives. This revised direction, outlined in the 'Third Social Security Basic Plan (2026-2030),' aims to create a society where 'everyone lives well.'

The new vision broadens the scope from the previous administration's emphasis on 'welfare for the vulnerable.' Key initiatives include the introduction of a basic income, intended as a new social safety net to address labor market changes driven by artificial intelligence and the limitations of the current social security framework. The government also plans to strengthen its role in care services, expanding the scope of regional integrated care programs and enhancing support across all life stages, from infancy to old age.

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The direction is valid, but it remains to be seen how much of the planned initiatives can be realized during the term.

While experts acknowledge the positive direction of embracing universal welfare, concerns remain about the practical implementation and financial sustainability. Critics point out the lack of concrete policies and funding strategies to realize these ambitious goals. They emphasize that universal welfare inevitably requires increased taxation and must be accompanied by robust economic growth strategies and job creation to be sustainable.

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A universal welfare system inevitably entails tax increases. Sustainable welfare is possible only when growth strategies and good job creation are considered together.