Korean Social Welfare Reform during the Economic Crisis

Abstract

This paper deals with the Korean welfare reform carried out due to the extremely unstable societal atmosphere, caused by the 1997 economic crisis. Introduction of the National Basic Livelihood Security Act and expansion of the coverage of social insurance are characterized as the projected reform. Nevertheless, the newly introduced public assistance program and the social insurance schemes still have room for improvement. For example, social insurance schemes had provided a protective umbrella in favor of regular workers, but it did not do the same for temporary contract-based workers or the self-employed. The government's efforts have not been sufficient to overcome these problems. This paper suggests some measures to resolve problems still existing in the Korean welfare system today.