The Ministry of Health and Welfare announced on September 1 that the ministry's 2027 budget proposal was approved at the Cabinet meeting. Total expenditure is 148.7697 trillion won, an increase of 8.2% from the 2026 main budget (137.4949 trillion won).

The ministry organized the budget around five core investment areas. The first is 'strengthening the social safety net that saves lives,' which includes the reform of the Basic Pension.

■ Basic Pension: Enhanced Support Centered on Low-Income Earners... Budget Up 11%

The Basic Pension reflects, to provide substantial support centered on low-income earners: ▲differentiated payments favoring lower incomes (3.48 million recipients) ▲a reduced spousal deduction ratio (2.34 million recipients) ▲support for occupational pension recipients and their spouses (110,000 recipients). Accordingly, the Basic Pension budget will increase 11% from 23.1 trillion won in 2026 to 25.7 trillion won in 2027.

The 2027 Basic Pension increase varies by income bracket. For couple households in the bottom 0–30%, differentiated payments will rise from 560,000 won in 2026 to 684,000 won in 2027, an additional support of up to 124,000 won. For couple households in the 30–45% bracket, differentiated payments will rise from 560,000 won to 646,000 won, up to 86,000 won in additional support.

Support for occupational pension recipients and their spouses is also newly included. Support, which stood at 0 won in 2026, will increase by up to 380,000 won in 2027 depending on the lower income bracket.

■ Standard Median Income Raised 6.7%... Maximum Livelihood Benefit Expanded

The social safety net area also includes an increase in the standard median income. The ministry will raise the standard median income by 6.7%, the largest increase since the customized benefit reform in 2015. The maximum monthly livelihood benefit will increase by 55,000 won for single-person households and 139,000 won for four-person households; for four-person households, it will rise from 2.078 million won to 2.178 million won per month.

For livelihood benefit recipients with severe disabilities (20,000 households), the dependents' support obligation rule will be abolished.

[This article is based on the Ministry of Health and Welfare's 2027 budget proposal announcement materials, and policy details are subject to change. AI assisted in part.]