The government announced a record increase in the median income standard for next year, but civic groups are urging reforms, claiming the decision does not reflect the actual income levels of citizens.
On July 28, the Ministry of Health and Welfare held the 80th Central Living Security Committee meeting, where it confirmed the calculation method for the median income standard to be applied from next year and for 2027. According to the new calculation method, the median income standard for a four-person household will rise by 6.70% to 6,929,885 won, marking the highest increase since the standard was first established in 2015.
The median income standard represents the income of the household that falls in the middle when all households are arranged in order of income. It serves as a criterion for selecting beneficiaries for approximately 80 welfare programs, including the basic living security system.
The government explained that the median income standard for the current year is calculated based on the average increase rate of the median income from the past three years of the Household Financial Welfare Survey, with adjustments made according to key economic indicators such as the consumer price index and real GDP growth rate.
However, the Economic Justice Action Coalition criticized the government for emphasizing the 'record high' increase in the median income standard, arguing that it obscures real issues. They stated, "The Central Living Security Committee has arbitrarily set the standard amounts for the past six years, ignoring the legally stipulated basic increase rate. As a result, the gap between actual income levels and the median income standard has widened from 12.49% in 2020 to 28.22% in 2024."
They further pointed out, "The government has been reviewing improvement measures in response to these criticisms, but ultimately decided to maintain the existing method. If this continues, the gap between actual median income and the standard will only widen, leading to increased living insecurity for the most vulnerable citizens."
Participatory Action also issued a statement emphasizing that the median income standard should not be an arbitrary variable determined by the government's financial conditions but rather a social benchmark to ensure the minimum living standards for citizens. They stressed the need for a practical baseline to protect the lives of low-income individuals, rather than merely repeating the phrase 'record high increase' each year.
The Basic Law Restoration Joint Action and the Joint Action for the Abolition of the Three Major Injustices Against the Poor and Disabled also released a joint statement criticizing the government's calculation method changes. They argued, "Adjusting the increase rate based on the consumer price index and economic growth rate is tantamount to institutionalizing existing erroneous practices, leaving the welfare baseline for all citizens at a regressive level and effectively neglecting K-shaped polarization."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.