The Seoul Metropolitan Government (SMG) is the first local government in the nation to implement an income relief initiative with its pilot project. As one of the pledges of Mayor Oh Se-hoon, this is a welfare initiative that supports households with relatively limited means of income and resources to realize the city’s values of fairness and coexistence. Households with an annual income of less than a certain amount will be provided a certain percentage of income in cash.
As it is directly related to the livelihood of citizens, the SMG is organizing an advisory group to design the pilot project that will carefully design the initiative in order to allow many-sided approaches and studies by the advisory group made up of 24 experts of various fields, including welfare, economics, management, and employment. The appointment ceremony for the advisory group was held on May 27. The advisory group will have in-depth discussions on the basic direction and targets of the project, as well as ways to select eligible beneficiaries and analyze the growth index.
The SMG is expecting that the introduction of the income relief will lead to five effects: eased income polarization; increased working motivation; economic revitalization; supplementation of the existing welfare and administrative processes; and significant guarantee of a certain amount of income.
This initiative will ease income polarization by discovering and supporting low-income households that are in the welfare blind spots and counter the side effects of the existing welfare system, where people earning low income do not work for fear of being disqualified as recipients even if they are capable. Supplementing the annual income of low-income households will result in smart spending and saving, which will contribute to desirable asset-building as well as lead to economic revitalization and enhanced quality of life.