"K-Shaped Polarization Deepens"... Next Year's Standard Median Income to Rise by a Record 6.7%

The 'standard median income,' which serves as the eligibility benchmark for various welfare programs, has been increased by a record 6.7%, setting the amount at 6,929,885 won for a household of four. Consequently, the monthly basic livelihood allowance for beneficiaries will be 2,217,563 won. The government has also reformed the calculation method for the first time in six years—not only to reflect income growth, but also to more realistically account for the minimum living expenses needed for basic needs.

Jung Eun-kyung, Minister of Health and Welfare, is responding to lawmakers' questions during the Education, Social, and Cultural Affairs sector Q&A session held at the National Assembly on April 13, 2026. Photo by Hyunmin Kim

On July 28, the Ministry of Health and Welfare announced that the Central Livelihood Security Committee has decided to raise the standard median income for a four-person household from this year’s level of 6,494,738 won to 6,929,885 won for next year, an increase of 6.7%. For a single-person household, the standard median income will rise by 171,804 won, from 2,564,238 won to 2,736,042 won.

The standard median income represents the median value of household incomes in the country and is used as the basis for approximately 80 forms of welfare benefits, including the basic livelihood security allowance. After review by the Central Livelihood Security Committee, the Minister of Health and Welfare officially announces the figure. Households are eligible for the basic livelihood security allowance if their monthly income is at or below 32% of the standard median income (2,217,563 won), unchanged from this year.

The standard median income was raised by 5.02% in 2022, 5.47% in 2023, 6.09% in 2024, 6.42% in 2025, and 6.51% this year. The decision to implement three consecutive increases of over 6% stems from the government's assessment that living conditions for low-income groups are worsening. The average monthly deficit for households in the lowest 20% income bracket rose from 438,000 won in the fourth quarter of last year to 519,000 won in the first quarter of this year. The proportion of deficit households increased as well, from 58.7% to 62.5% over the same period.

In 2024, the disposable income of the top 20% of households was 5.78 times that of the bottom 20%. In the first quarter of this year, the disposable income growth rate was 5.1% for the top 20%, but only 1.9% for the bottom 20%.

A Ministry of Health and Welfare official explained, "There is an urgent need to respond proactively to the deepening of poverty and the K-shaped polarization. Under the new decision, the maximum basic livelihood payment will increase by approximately 55,000 won for a single-person household and about 140,000 won for a four-person household, which is expected to contribute to improving the standard of living for low-income groups."

This content was produced with the assistance of AI translation services.