Annual In-Kind Welfare Benefits Such as Free Childcare and Healthcare Amount to KRW 9.26 Million...12.5% of Annual Household Income

The government and non-profit organizations provide in-kind social welfare benefits, such as free childcare and healthcare services, to households, which amounted to KRW 9.26 million per year. This figure is equivalent to 12.5% of average annual household income. Due to the impact of population aging, nearly half of these benefits are related to healthcare, while in-kind support for education has decreased as a result of the declining school-age population.

Yongin Special City Suji District Public Health Center is providing home visit management services for elderly people with mobility difficulties. Yongin City

According to the "Income Statistics Reflecting Social In-Kind Transfers" released by the Ministry of Data and Statistics on August 18, 2026, the average annual in-kind transfer income per household in 2024 was KRW 9.26 million, up 0.4% from KRW 9.22 million the previous year. In-kind transfer income refers to the monetary value calculated for free educational and childcare services provided by the state, or free essential goods distributed by non-profit organizations. The proportion in comparison to the average household income (KRW 74.27 million per year) stood at 12.5%, meaning that the government and non-profit organizations effectively cover about one-eighth of household income annually through in-kind expenditures.

By sector, healthcare accounted for the largest portion at KRW 4.88 million, followed by education (KRW 3.77 million), childcare (KRW 320,000), and other vouchers (KRW 280,000). Compared to the previous year, healthcare and other vouchers increased by 3.5% and 11.4%, respectively, while education and childcare declined by 3.4% and 7.2%. The rise in healthcare demand due to an aging population has resulted in an increased proportion in this sector, whereas lower birth rates and a shrinking school-age population have led to reduced educational and childcare benefits.

The share of in-kind transfer income in total income was higher among lower income households. For the lowest quintile (bottom 20%), the share was 46.8%, the highest among all groups, followed by the second quintile (19%), third quintile (14.9%), fourth quintile (12.4%), and fifth quintile (7.2%). Adjusted household income, reflecting in-kind transfers, was found to be KRW 22.79 million for the first quintile, KRW 42.67 million for the second, KRW 66.71 million for the third, KRW 99.47 million for the fourth, and KRW 185.92 million for the fifth quintile.

In-kind transfer income has also contributed to alleviating income inequality to some extent. The Gini coefficient for 2024, when in-kind transfer income is considered, was 0.281, down 0.044 from 0.325 prior to its inclusion. The closer the Gini coefficient is to zero, the more equal the income distribution. Improvements by age group were highest for the retirement-age group (-0.077), followed by children (-0.062) and the working-age group (-0.032).

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