Welfare Policy Expected to Undergo Overhaul

Elderly people line up to apply for a position at a welfare facility in Chuncheon, Gangwon Province. The new government plans to upgrade and strengthen programs to create more jobs for the elderly to cope with the “graying” of the country. / Yonhap

By Park Si-soo
Staff Reporter

The incoming Lee Myung-bak administration aims to apply economic principles to its welfare policy, emphasizing ``focus and efficiency'' as it concentrates its resources on resolving the low-birth rate and improving childcare, and giving the retired elderly jobs and medical care.

The welfare policy also aims to help the poor escape poverty and to develop a skilled work force.

``If social welfare is not strong, there will be many who question the market economy, and the foundation of society will shake,'' said the President-elect, who believes that investing in welfare is in the end the same as investing in the economy. Strong welfare will act like nutrition to strengthen the market economy.

He calculates that about 11 trillion won will be needed to execute his welfare policies and said that he will find up to 20 trillion won in budgetary cuts to invest in them.

However, some observers call the President-elect's aims lack substance and are unrealistic.

Birth and Childcare

Lee plans to guarantee that all Koreans will receive birth and childcare aid, no matter how much they earn in a move to increase the birth rate.

``We have to create a good environment for raising children, before we ask people to have more babies," he said. ``A low birth rate means fewer people working and this will hurt the domestic economy.''

At the current rate, Korea's potential growth rate will fall from five percent in 2000 to three percent in 2020 and 1.5 percent in 2040.

To fight this trend, the incoming administration plans to exempt children aged five years and below from medical fees and give subsidies to those parents who hire care givers for their children.

If the policy is executed, the benefits will be introduced between 2009 and 2012 by which time all children below school age will be receiving comprehensive childcare and education benefits.

Additionally the government will pay for the all medical costs incurred between pregnancy and delivery.

Lee also said that he will introduce special atopic dermatitis treatment centers and amend construction laws to make it illegal to use substances that cause the sick house syndrome. These policy measures will cost an estimated three trillion won.

Policy for Senior Citizens

The incoming administration is looking for ways to maximize national output by utilizing senior citizens in suitable positions, and minimizing social costs by offering free medical services for preventable diseases.

In addition, the new president is considering delaying the retirement age, while encouraging more companies to introduce a ``salary peak program,'' enabling them to keep older skilled employees at a lower cost while securing new blood.

The presidential transition team is also looking into giving incentives or subsidies to companies hiring the elderly.

A number of state-backed employment agencies for senior citizens will also be established nationwide over the next five years, to develop various occupations for them, allow the elderly to remain financially independent.

The government's welfare policy concerning health will focus on preventing ``destructive diseases,'' which require a huge amount of money to treat such as senile dementia and strokes.

Such diseases usually impose a financial burden on the patient's family, possibly causing bankruptcy if the patient's condition fails to improve over time.

``Free physicals for senior citizens who are at risk of such diseases could ease the financial burden of medical treatments,'' the transition team said.

To expand the infrastructure for the welfare of the aged, the Presidential-elect has promised to hire more than 79,000 specialized nurses, whil keeping the charge for medical treatment at an acceptable level.

Lee also said a special unified emergency call center ― ``129 Ubiquitous Care System'' ― will be launched to support the aged living alone on an insufficient income.

Policies for the Low-Income Bracket

President-elect Lee Myung-Bak is preparing a policy for the low-income bracket to sever the chain of poverty handed down from generation to generation.

In an attempt to give those in need some advantages, Lee is considering adopting a quota system in the civil service examinations, similar to affirmative action in the U.S, which guaranteed college places for ethnic minorities.

More than twenty countries including China, India, Japan, and Canada have currently adopted the system.

While the free supply of briquettes has been given to the bottom income bracket only, the committee said this will be expanded to other people from September. While 4,000 households are currently given free briquettes, the number of beneficiaries will be increased to 10,000.

Policies for the Disabled

The next administration is planning on making public transportation more usable for the disabled by installing escalators and elevators in subway stations, and increasing the number of low-entry buses for the disabled, elderly, and pregnant. It will also introduce a government-sponsored call taxi service for the disabled.

Surgery for the National Pension Plan

Lee said his government will revamp the National Pension Fund that is being operated inefficiently.

The Ministry of Health and Welfare is reviewing integrating the National Pension Plan and the basic pension for the aged, and is also seeking ways to increase profits from investing pension funds.

pss@koreatimes.co.kr