The South Korean Ministry of Health and Welfare has proposed a record budget of 152 trillion won for 2027. The budget aims to strengthen welfare support for low-income individuals facing economic hardships and to revitalize local hospitals that are at risk of collapse due to an influx of patients to metropolitan areas. Additionally, a new "Future Response Fund" will be established to provide substantial financial support to young families raising children.
On September 1, the Ministry announced that the total expenditure for the 2027 budget is set at 148.77 trillion won, an 8.2% increase from this year's budget. When including the newly created Future Response Fund, which allocates 3.66 trillion won for welfare, the total budget reaches 152.43 trillion won, marking a significant 10.9% increase from the previous year.
Strengthened Welfare Support: Median Income Benchmark Increased by 6.7%
A key highlight of the budget proposal is the unprecedented increase in the "median income" benchmark. This benchmark represents the income level of the household that falls exactly in the middle of all households in South Korea. It serves as a crucial criterion for determining the distribution and amount of various welfare benefits.
The government plans to raise the median income by 6.7% next year, the largest increase since the introduction of the tailored benefit system in 2015. This adjustment will allow individuals who previously fell just short of qualifying for welfare benefits to receive support. For example, a four-person household already receiving basic living support will see an increase of up to 139,000 won per month, providing significant relief to their financial situation.
Furthermore, the basic pension for the elderly has been revised to focus benefits on the most impoverished individuals. An additional 30,000 won will be provided monthly to 3.48 million seniors in the lowest income bracket, allowing them to receive a maximum pension of 380,000 won.
Revitalizing Local Hospitals: 1.26 Trillion Won Investment
The budget also addresses the pressing issue of local healthcare, which has seen many patients forced to travel to large hospitals in Seoul. The government is creating a special fund called the "Essential Local Healthcare Fund," amounting to 1.26 trillion won.
This fund will be dedicated to revitalizing local healthcare services, with greater support directed to hospitals located far from the capital. Local public healthcare institutions will be prioritized for assistance, and local governments will be granted autonomy to plan and implement the healthcare services most needed in their communities.
Additionally, 490 medical students who commit to working in rural areas for ten years will receive full support for tuition and living expenses, encouraging skilled doctors to establish their practices in these regions.
Addressing Low Birth Rates: Future Response Fund to Support Families
The newly established Future Response Fund aims to tackle the issue of declining birth rates and support the challenging lives of young people. The Ministry plans to consolidate existing childbirth and childcare support into a new "Childbirth Support Fund." Families will receive 10 million won for their first child, 12 million won for the second, and 15 million won for the third and subsequent children, distributed over a year. Families living in areas experiencing population decline will receive an additional 5 million won bonus.
Moreover, a "Basic Child Allowance" will be introduced, providing 200,000 won per month (100,000 won in cash and 100,000 won in local gift certificates) for children aged 0 to 12. This initiative reflects a strong commitment to alleviating the financial burden on families raising children.
Additionally, the government will cover the first national pension insurance premium (approximately 42,000 won) for 451,000 young people turning 18 in 2027, helping them start saving for their future.
Minister of Health and Welfare Jeong Eun-kyeong emphasized, "We have structured the 2027 budget to strengthen the social safety net that protects lives, expand community care, and enhance essential public healthcare services to ensure high-quality medical care for all citizens, regardless of where they live. We are committed to realizing a welfare state that safeguards the lives of our citizens and have made every effort to reflect the necessary budget in this proposal."
* This article has been translated by AI.
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