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Minimum income schemes expansions and heterogeneous effects in South Korea

Abstract

Korea introduced minimum income schemes (MIS) in 2000 as the last resort of the welfare system. With their expansion, benefit adequacy approached the average of developed countries, considerably mitigating Korea’s poverty rate. However, old-age, female householders, and single households continue to face the threat of severe poverty. This study examines the extent to which MIS supports vulnerable groups using the Korean Welfare Panel Study between 2019 and 2023, including the COVID-19 pandemic. The National Basic Livelihood Security (NBLS) and Basic Pension schemes were analysed separately as major minimum income benefits. The main results indicate that MIS provides limited coverage, benefits, and contributions to the poverty rate. During the pandemic, MIS played a limited role, as the Korean government introduced its first universal benefits rather than adjusting the current MIS. Among the three groups, female householders benefited more from the NBLS, and old-age received more from the Basic Pension. However, single households secured limited support because the equivalence scale of the NBLS provided more assistance to larger families. Therefore, the Korean government needs to provide more inclusive schemes and improve institutional designs to mitigate poverty among vulnerable groups.

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Posted in: Journal Article Abstracts on 03/17/2026 | Link to this post on IFP |
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