Seoul welfare scheme rebranded as 'Stepping Stone Income'

Seoul Mayor Oh Se-hoon tours a gallery showcasing the progress of the Seoul Safety Income initiative before attending the "Seoul Safety Income 2nd Anniversary Discussion Forum" held at City Hall on July 4. (Seoul Metropolitan Government)

The Seoul Metropolitan Government announced the rebranding of its "Safety Income" scheme as the "Seoul Stepping Stone Income," in order to promote its program as a model welfare program for other regions.

The city's signature welfare program was rebranded through a public competition held last month, which garnered 12,580 name suggestions, according to the Seoul Metropolitan Government. From the five finalists, the city selected "Stepping Stone Income" -- "Didimdol Sodeuk" in Korean -- as the new name, citing its potential to appeal more broadly to and be understood by the public.

The initiative, based on economist Milton Friedman’s negative income tax, was launched as a pilot project by the city government in July 2022. It is a selective welfare program that provides differentiated cash payments based on household income for households earning less than 85 percent of the median income, according to Seoul city.

A key feature of the program is that eligibility is maintained even if the predetermined income threshold is exceeded, with a structure that provides more support to those with lower incomes, following a "support the lower, aid the upper" approach.

It supports half of the difference between a predetermined standard amount and each household's income -- or up to 947,090 won ($708.66) per month for a single-person household -- for households with an income of 85 percent or less of the median income and assets of 326 million won or less. A total of 2,076 households were selected for Seoul's pilot program.

Unlike the existing basic welfare system, where recipients lose eligibility if they earn money above an income threshold, the initiative is designed to motivate recipients to continue working, according to city officials.

The Seoul city government is in talks with other local governments to expand the initiative to other regions. This involves examining the program's potential relationship with existing welfare systems and refining its policies for broader applicability.

“With 'Seoul Stepping Stone Income,' our goal is to create a solid foundation for those in need, not only in Seoul but throughout Korea,” said Jung Sang-hoon, head of Seoul City's Welfare Department. “We hope it becomes an essential tool for helping individuals move from challenging situations to brighter futures.”

By Lee Jaeeun(jenn@heraldcorp.com)