Median Income to Rise 6.7% Next Year... Controversy Over Calculation Method

The government has raised the standard median income for next year by the largest margin ever, but critics argue it is insufficient to close the gap with the actual median income of households. The Ministry of Health and Welfare increased the 2027 standard median income by 6.7% from this year to 2.736 million won per month for single-person households. This rate of increase is the highest since the calculation began in 2015.

The gap between national income levels and the standard median income is widening. According to the Economic Justice Citizens' Alliance, the gap for four-person households expanded from 12.49% (800,000 won) in 2021 to 28.22% (1.6 million won) in 2024. The group argued that this is not a matter of statistical time lags, but rather a lack of government will to narrow the gap.

The government has introduced a new calculation method that explicitly references economic and social indicators such as the consumer price index and real GDP. The Central Livelihood Security Committee decided to maintain current ratios for livelihood, medical, housing, and education benefits next year. The eligibility threshold for livelihood benefits was frozen at 32% of the standard median income. The People's Solidarity for Participatory Democracy pointed out that the timeline for reaching the 35% eligibility threshold for livelihood benefits has been delayed by four years compared to the government's original target.