Social Welfare System

The social welfare system in Korea has become a public issue recently. Before the 1997 financial crisis, policy makers as well as the general public were mainly interested in pursuing economic growth and largely downplaying welfare needs. In the wake of the crisis, however, the demand for welfare increased significantly, and this in turn has brought changes in the welfare structure, along with an expansion in welfare expenditures. This paper highlights the features of the Korean welfare system in terms of social insurance, pubic assistance, and social service. It examines the basic limitations and key issues surrounding the system. It compares the size of social welfare expenditures in Korea to other Organization for Economic Cooperation and Development (hereinafter the OECD) countries. In sum, welfare coverage, expenditures, and benefit levels are among the barriers to surmount especially in these times of high aspirations toward national unification and globalization.