Improving Social Security Policies to Enhance Work Incentives for the Working Poor – South Korea Institute of Public Finance
Korea has various social security programs, such as unemployment benefits, basic living allowances, and the National Employment Support System, aimed at assisting low-income groups. These government welfare policies help individuals who are unemployed, either voluntarily or involuntarily, or have low incomes, guiding them back into the labor market. However, how effective are these policies in practice? To explore this, the Korea Institute of Public Finance has published a report titled "Improving Social Security Policies to Enhance Work Incentives for the Working Poor." This report aims to develop improvements in social security policies to ensure the working poor can sustain economic activities . It evaluates existing social security programs and seeks ways to strengthen inter-policy alignment to enhance work incentives. A key focus is resolving conflicts between basic living allowances and the Earned Income Tax Credit (EITC). 1. Overview of Social Security Policies Kor...