🚨 Basic Income

Today Korean Social News for Beginners | 2025.10.21

0️⃣ Rural Basic Income Pilot Program and National Expansion Discussion

📌 Rural Basic Income: 150,000 Won Monthly Payment to 7 County Residents... 5 Trillion Won Annual Cost Expected if Expanded Nationwide

💬 Starting in 2026, residents of 7 counties including Yeoncheon in Gyeonggi, Jeongseon in Gangwon, Cheongyang in Chungnam, Sunchang in Jeonbuk, Shinan in Jeonnam, Yeongyang in Gyeongbuk, and Namhae in Gyeongnam will receive 150,000 won per month as rural basic income. Anyone who actually lives in these areas for more than 30 days can receive it, regardless of age or occupation. The government plans to run this pilot program for 2 years, analyze the results, and then decide whether to expand it nationwide. If expanded to all 69 population-declining regions nationwide, it is estimated that about 4.9 trillion won in annual funding will be needed. This is considered an innovative policy experiment to respond to the rural decline crisis and improve living stability in rural areas.

💡 Summary

• Basic income is a system that regularly pays a certain amount to all citizens unconditionally.
• Starting in 2026, a rural basic income pilot program of 150,000 won per month will begin in 7 counties.
• If expanded nationwide, about 5 trillion won in annual funding is expected, making funding sources important.

1️⃣ Definition

Basic income means a social security system that regularly pays a certain amount to all citizens unconditionally. The key is to ensure that everyone can be guaranteed a minimum standard of living, regardless of whether they work, their income level, or asset size.

Unlike traditional selective welfare, basic income has the nature of universal welfare and is paid equally to all citizens without complex screening procedures. This is a policy with various purposes such as poverty prevention, income gap reduction, and promotion of individual freedom, and experiments and discussions are actively taking place in many countries around the world.

💡 Why is it important?

• It is a universal social safety net that guarantees minimum living standards for all citizens.
• It is a practical way to respond to rural population decline and regional extinction crisis.
• It can increase welfare administration efficiency and eliminate welfare blind spots.
• It is a new welfare model to prepare for future changes in jobs.

2️⃣ Main Contents of Rural Basic Income Pilot Program

📕 Pilot Program Target Areas and Payment Method

• 7 counties have been selected as pilot program areas. The main details are as follows:

  • Yeoncheon-gun in Gyeonggi, Jeongseon-gun in Gangwon, Cheongyang-gun in Chungnam, Sunchang-gun in Jeonbuk, Shinan-gun in Jeonnam, Yeongyang-gun in Gyeongbuk, and Namhae-gun in Gyeongnam were selected.
  • All of these areas are designated as population-declining regions, with serious aging and population outflow.
  • They are evenly distributed across all regions nationwide to enable comparative analysis of regional characteristics.
  • The total population of the 7 counties is about 270,000, all of whom are eligible for basic income.

• The payment conditions and method have been clearly defined. The main criteria are as follows:

  • 150,000 won is paid monthly on an individual basis, not per household.
  • Anyone who actually lives in the area for more than 30 days can receive it.
  • It is unconditional payment that does not consider age, income, assets, or occupation.
  • It is paid in local currency, designed to be usable only within that region.
  • It will run for 2 years from January 2026 to December 2027.

📕 Purpose and Expected Effects of Pilot Program

• Preventing population outflow and regional revitalization are the main goals. The core purposes are as follows:

  • Prevent young and middle-aged people from leaving rural areas and encourage settlement.
  • Revitalize the local economy and create jobs through increased local consumption.
  • Promote living stability and improve quality of life for elderly residents.
  • Strengthen local communities by increasing the population returning to farming and rural areas.

• It is an experiment to verify the effectiveness of the basic income system. The main verification contents are as follows:

  • Carefully observe the impact of basic income on work motivation.
  • Analyze local economic ripple effects and income increase effects.
  • Measure changes in residents' life satisfaction and mental stability.
  • Monitor for false registrations or side effects.
  • Identify institutional improvements needed for nationwide expansion.

💡 Main Issues of Rural Basic Income

1. Regional Equity: Concerns about backlash from other population-declining regions as only some areas are selected
2. Financial Burden: Huge annual cost of 5 trillion won if expanded nationwide
3. False Registration: Possibility of side effects from address changes to receive basic income
4. Local Currency Limitations: Concerns about reduced real benefits due to usage restrictions
5. Effect Verification: Difficulty judging long-term effects with only a 2-year short-term experiment

3️⃣ Issues and Prospects in Basic Income Discussion

✅ Support: Value as an Innovative Welfare Model

• Expanding universal welfare eliminates welfare blind spots. The main advantages are as follows:

  • All citizens receive benefits without income or asset checks, leaving no one out.
  • Can reduce complex welfare administration costs and increase efficiency.
  • Can receive minimum living guarantees with dignity without stigma.
  • Contributes to living stability not only for the poor but also for the middle class.

• It is a practical alternative to prevent rural extinction crisis. Expected effects are as follows:

  • Stable income guarantees encourage young people to settle in rural areas.
  • Increased local consumption revitalizes commercial districts and creates jobs.
  • Alleviates poverty problems for elderly residents and improves quality of life.
  • Provides strong motivation for people considering returning to farming or rural areas.
  • Local communities are maintained and culture and traditions are preserved.

✅ Opposition: Concerns About Financial Burden and Side Effects

• The huge financial burden is the biggest obstacle. Main concerns are as follows:

  • About 5 trillion won annually is needed when expanded to 69 population-declining regions nationwide.
  • Expanding to all citizens costs over 100 trillion won annually, an astronomical amount.
  • Tax increases are inevitable to secure funding, and tax resistance is expected.
  • There is a possibility that other welfare budgets will need to be cut, potentially shrinking overall welfare.

• Various side effects and institutional limitations are being pointed out. Main problems are as follows:

  • There are concerns that false registrations to receive basic income will increase sharply.
  • A balloon effect where population moves to surrounding areas may occur.
  • Work motivation may decrease, leading to lower productivity.
  • Real benefits may decrease due to local currency usage restrictions.
  • Some point out that 150,000 won per month has limited effect on improving living standards.
  • Issues of overlap and conflict with existing welfare systems need to be adjusted.

4️⃣ Related Terms Explained

🔎 Basic Social Security Act

• The Basic Social Security Act is a fundamental law to guarantee dignified living for citizens.
  • The Basic Social Security Act is a law enacted in 1995 to guarantee dignified living for citizens and systematically operate the social security system according to the Constitution of the Republic of Korea. It stipulates the basic direction and principles of social security, including social insurance, public assistance, and social services.
  • The main contents of the law include: First, it specifies the state's responsibility for social security. Second, it guarantees the right to receive social security as a basic right of citizens. Third, it stipulates that social security benefits should be set at a level necessary to maintain and improve living standards. Fourth, it clarifies the operating principles of the social security system and the responsibilities of the state and local governments.
  • Basic income is being discussed as a system that conforms to the basic purpose of social security set forth in this law. In particular, the legitimacy of basic income is being raised as a concrete way to realize "the right of all citizens to live a dignified life."

🔎 National Basic Livelihood Security System

• The National Basic Livelihood Security System is a system that guarantees minimum livelihood to low-income citizens.
  • The National Basic Livelihood Security System is a system that provides necessary benefits to people in financial difficulty to guarantee minimum living standards and help them become self-reliant, in accordance with the National Basic Livelihood Security Act enacted in 1999. It is a public assistance system where the state takes responsibility for the basic living of the poor, replacing the previous livelihood protection system.
  • Main types of benefits include: First, livelihood benefits support costs necessary for daily life such as food, clothing, and shelter. Second, medical benefits support medical costs necessary for treating diseases and injuries. Third, housing benefits help with housing rental or maintenance repair costs. Fourth, education benefits support children's education costs. Eligibility for benefits is for households whose recognized income is below a certain percentage of the median income standard.
  • Basic income can be seen as a universal expansion of this system. While the National Basic Livelihood Security System is selective welfare, basic income is universal welfare, with the biggest difference being that it is paid to all citizens without income checks.

🔎 Population-Declining Region

• A population-declining region is an area where population decline is serious and requires special government support.
  • A population-declining region is a region designated under the "Special Act on Balanced National Development" where the population is rapidly decreasing and aging is intensifying, facing a regional extinction crisis. As of 2023, 89 cities, counties, and districts nationwide are designated as population-declining regions, of which 69 are county-level areas.
  • Designation criteria include: First, the recent population decline rate must be above a certain level. Second, the youth net migration rate is negative. Third, the aging ratio greatly exceeds the national average. If these criteria are met, special financial support and policy consideration from the government can be received.
  • The rural basic income pilot program is part of measures to overcome the crisis in these population-declining regions. The core purpose is to prevent the outflow of young population through stable income guarantees and increase the population returning to farming and rural areas to prevent regional extinction.

🔎 Finland's Basic Income Experiment

• Finland conducted the world's first national-level basic income experiment.
  • The Finnish government conducted a basic income experiment for 2 years from January 2017 to December 2018. They randomly selected 2,000 unemployed people aged 25-58 receiving unemployment benefits and paid them 560 euros (about 750,000 won) per month unconditionally. It was paid regardless of employment status, and no taxes were imposed.
  • The experiment results showed: First, the employment rate of the group receiving basic income increased slightly. Second, work motivation did not decrease, and attempts at entrepreneurship or self-employment actually increased. Third, mental stability and life satisfaction improved significantly. Fourth, stress levels decreased and health conditions improved. Fifth, social trust increased, showing positive effects.
  • This experiment showed that the concern that basic income would make people "not work and just play" was unfounded. Rather, the minimum living guarantee gave people psychological stability and provided the leisure to find better jobs or challenge entrepreneurship. This became an important catalyst for the expansion of basic income discussions worldwide.

5️⃣ Frequently Asked Questions (FAQ)

Q: If I receive basic income, can I not receive other welfare benefits?

A: The rural basic income pilot program is paid separately from existing welfare, but adjustments will be needed when institutionalized in the future.

• In the current rural basic income pilot program, it is paid separately regardless of existing welfare benefits. First, National Basic Livelihood Security recipients can also receive basic income. Second, duplicate receipt with other social security benefits such as disability pension or basic pension is possible. Third, social insurance benefits such as health insurance or national pension are also maintained. This is designed to purely measure the effects of the pilot program.
• However, if basic income is expanded nationwide and institutionalized, the situation may change. Due to the huge financial burden, integration or adjustment with existing welfare systems is expected to be inevitable. Some experts are proposing to reduce or consolidate some selective welfare while introducing basic income. Therefore, careful consideration is needed in the future system design process to ensure that the rights of existing welfare recipients are not violated.

Q: Won't basic income increase the number of people who don't work and just play?

A: Empirical studies show that basic income does not significantly reduce work motivation.

• Various studies, including Finland's basic income experiment, show that basic income does not significantly reduce work motivation. First, in the Finland experiment, the employment rate of basic income recipients actually increased slightly. Second, with psychological stability from minimum living guarantees, cases of finding better jobs or challenging entrepreneurship increased. Third, instead of forcing themselves to maintain low-income jobs, people had the leisure to invest in vocational education or skill acquisition. Fourth, with only about 150,000 won per month in basic income, sufficient living is impossible, so most people continue to work.
• Of course, some people may reduce their working hours. But this is not entirely negative. For example, there are positive aspects such as reducing work hours for childcare or family care, or gaining negotiating power to improve poor working conditions. The important point is that basic income does not make people lazy, but gives them the freedom to choose a more humane life.

Q: Won't many people make false registrations to receive rural basic income?

A: A management system is being prepared to prevent false registrations, but complete prevention is a difficult task.

• The government is preparing several measures to prevent false registrations. First, a requirement of living for more than 30 days is set, so it cannot be received with just an address change. Second, a system is operated to conduct on-site investigations of actual residence after registration. Third, actual residence is confirmed through objective data such as electricity and water usage, health insurance qualifications, etc. Fourth, if false registration is detected, the paid basic income will be recovered and legal punishment will be imposed.
• However, complete prevention is realistically difficult. Some may actually move or maintain dual residence to target the basic income. In particular, 150,000 won per month is 1.8 million won annually, which is a substantial amount, so the incentive may be large. To minimize these side effects, thorough management and supervision are needed, along with a social system where local communities cooperate to monitor false registrations. During the pilot program period, these side effects should be carefully monitored to create an improved system when expanding nationwide.

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