This study examines the composition and trends of quasi-cash welfare expenditures among Seoul’s 25 districts (gu) from 2019 to 2024, focusing on both overall patterns and district-specific variations. Analysis of administrative data on welfare program expenditures revealed that, across most districts and years, quasi-cash welfare programs, including national income security schemes such as the Basic Pension, consistently accounted for approximately 80% of total welfare budgets. However, a declining or stagnant trend for such budgets was observed in many districts during the later years, particularly after 2022.
Despite the dominance of quasi-cash programs in the overall welfare budget, the proportion of district-financed (100% locally funded) quasi-cash transfers remained below 6% in nearly all districts and years. Considerable variation existed across districts, indicating a high level of volatility in local-level budgeting for such programs.
In domains such as veterans’ support and childbirth-related benefits, increased policy relevance and disparities in the financial standing of the district-level governments, quasi-cash programs were increasingly created and have generated neighborhood effects, where benefit levels in adjacent districts influence local policy decisions and resident expectations. Evidence of both successful coordination (e.g., standardizing childbirth grants) and fragmented outcomes among districts highlights the need for improved inter-district collaboration
To address these challenges, this study developed a diagnostic tool for Seoul’s districts to systematically evaluate the relevance, fiscal impact, and welfare effectiveness of their own cash-based programs. It also proposes an enhanced governance structure for welfare coordination among districts and between districts and the Seoul Metropolitan Government, building on the existing Council of District Mayors. This framework aims to support data-driven policy deliberation and equitable resource allocation based on local welfare needs and priorities.