The standard median income, which serves as the benchmark for various welfare programs, will see its largest increase ever at 6.7%. This decision reflects the government's commitment to better protect the most vulnerable populations suffering from rising living costs amid deepening income polarization.
On July 28, the Ministry of Health and Welfare held the 80th Central Living Security Committee meeting, where it was decided to raise the standard median income by 6.7% for 2027. The standard median income represents the income of households positioned exactly in the middle when all households are arranged in order of income.
This amount acts as the 'welfare benchmark' for selecting beneficiaries of 80 welfare programs operated by 15 central ministries, including the basic living security system. An increase in the standard median income will expand the number of individuals eligible for welfare benefits and increase the support amounts for existing beneficiaries.
The 6.7% increase is the highest since the calculation of the standard median income began in 2015. Consequently, the standard median income for a four-person household will rise to 6.92 million won, an increase of approximately 435,000 won from this year’s figure of 6.49 million won. For single-person households, the new standard will be 2.74 million won, up about 172,000 won.
As the welfare benchmark rises, the basic living allowance, which is crucial for low-income households, will also see significant increases. The maximum living allowance for a four-person household, which is set at 32% of the standard median income, will increase from 2.08 million won this year to 2.22 million won next year, an increase of about 140,000 won. The maximum living allowance for single-person households will also rise by approximately 55,000 won to 875,533 won.
Additionally, the standard rent for housing benefits (for those earning 48% or less of the median income) will increase by up to 50,000 won, depending on the number of household members and region, while the education allowance (for those earning 50% or less) will rise by an average of 4.7% compared to the previous year.
To facilitate this increase, the government has revised the method for calculating the standard median income. This adjustment aims to address the lag in existing statistical data, which was based on figures from 3 to 5 years ago, by incorporating the latest consumer price index and real GDP growth rates, significantly enhancing its relevance.
Minister of Health and Welfare Jeong Eun-kyeong stated, "The recent widening gap in income among lower-income groups and the increasing deficit faced by them have made living conditions difficult for many citizens. The decision to raise the standard median income by a record 6.7% for 2027 reflects the government's determination to provide stronger support for the most vulnerable citizens."
On July 28, the Ministry of Health and Welfare held the 80th Central Living Security Committee meeting, where it was decided to raise the standard median income by 6.7% for 2027. The standard median income represents the income of households positioned exactly in the middle when all households are arranged in order of income.
This amount acts as the 'welfare benchmark' for selecting beneficiaries of 80 welfare programs operated by 15 central ministries, including the basic living security system. An increase in the standard median income will expand the number of individuals eligible for welfare benefits and increase the support amounts for existing beneficiaries.
The 6.7% increase is the highest since the calculation of the standard median income began in 2015. Consequently, the standard median income for a four-person household will rise to 6.92 million won, an increase of approximately 435,000 won from this year’s figure of 6.49 million won. For single-person households, the new standard will be 2.74 million won, up about 172,000 won.
As the welfare benchmark rises, the basic living allowance, which is crucial for low-income households, will also see significant increases. The maximum living allowance for a four-person household, which is set at 32% of the standard median income, will increase from 2.08 million won this year to 2.22 million won next year, an increase of about 140,000 won. The maximum living allowance for single-person households will also rise by approximately 55,000 won to 875,533 won.
Additionally, the standard rent for housing benefits (for those earning 48% or less of the median income) will increase by up to 50,000 won, depending on the number of household members and region, while the education allowance (for those earning 50% or less) will rise by an average of 4.7% compared to the previous year.
To facilitate this increase, the government has revised the method for calculating the standard median income. This adjustment aims to address the lag in existing statistical data, which was based on figures from 3 to 5 years ago, by incorporating the latest consumer price index and real GDP growth rates, significantly enhancing its relevance.
Minister of Health and Welfare Jeong Eun-kyeong stated, "The recent widening gap in income among lower-income groups and the increasing deficit faced by them have made living conditions difficult for many citizens. The decision to raise the standard median income by a record 6.7% for 2027 reflects the government's determination to provide stronger support for the most vulnerable citizens."
* This article has been translated by AI.
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