Mandatory welfare spending to rise

The country's welfare spending is expected to rise over the next few years even when excluding the estimated costs incurred by pledges political parties are ramping up ahead of the presidential election, data showed Wednesday.

Mandatory spending in the social welfare sector is likely to reach 62.9 trillion won ($56.5 billion) in 2013, up from 59 trillion won this year, according to the data by the Ministry of Strategy and Finance. The figures were calculated on the basis of status quo laws and policies.

South Korea is scheduled to hold its presidential race in December, with three candidates vying to become the next leader of Asia's fourth-largest economy.

The figure is expected to reach 72.6 trillion won in 2015 and 78.8 trillion won in 2016, growing at an annual 7.5 percent rate.

Mandatory spending refers to the amount the government is subject to spend under related regulations. Since the cost and range of the spending are set, it is difficult for the government to reduce the respective amount.

An annual 10.8 percent growth was projected on average in the public pension sector as the number of recipients rise amid the country's rapidly aging population.

The spending to support low-income earners is expected to rise 4.2 percent each year on the basis that the number of recipients stays at the current 1.43 million level and annual inflation reaches 3 percent. (Yonhap)