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Developing the Seoul Basic Livelihood Security Scheme:Plan to Reduce Welfare Blind Spots

Seung-Yun KimㆍHye-Rim LeeㆍYoung-Joo LeeㆍKyoung-Hoon Han

Since 2013, Seoul city offers the Seoul Basic Livelihood Security Scheme (SBLS) in order to protect marginalized population who left behind by National Basic Livelihood Security (NBLS) Scheme. In this paper, we focus on non-take-up of the SBLS, which has not been widely studied to date.

First, we examine the size and determinants of non-take-up in Seoul by using 13rd Korea Welfare Panel Study. Our finding suggests that nearly 18 million people remains as non take-up of SBLS and 80% of this entitled population has never been applied for the benefits, 20% of them failed means test mostly because of strict family support obligation rule.

Second, we examine entry barriers of the SBLS include: income standard, property standard and family support obligation rule. We suggest various options to alleviate means test standard and estimate the number of increased beneficiary under the improved eligibility criteria. ‘Abolishing family support obligation model’ confirmed to be the best and the most effective way to reducing welfare blind spot among others. Our estimation presents that additional 500 thousand of marginalized population can obtain SBLS entitlements under this model.