MDP raises 67,000 won for living costs of low-income people

Beginning next year, allowances for the livelihood protection of destitute citizens will be raised by 67,000 won on average.

The government and the ruling Millennium Democratic Party (MDP) held a meeting Wednesday at the National Assembly and decided on the raise. Participants at the meeting included MDP chief policymaker Lee Hae-Chan, Health and Welfare Minister Choi Sun-Jung and Labor Minister Kim Ho-Jin.

The government and the ruling party decided to change the present calculation system of the allowances and lower the portion of medical costs covered by another government program, estimated at 111,000 won, to 44,000 won, thereby increasing the monthly allowance for a four-member household by 67,000 won on average.

Anticipating a surge in the number of jobless people in the first half of next year, they also decided to increase the budget for public projects, which is currently set at 400 billion won, and organize a task force with the ministers of government administration and home affairs, health and welfare, labor, and planning and budget, which will arrange ways to expand the budget.

In addition, the government and the party agreed to advance the implementation of a tax deduction program for self-supporting laborers to the second half of next year from the original schedule of 2002, and also decided to cover medical costs for poor citizens designated temporary beneficiaries of the livelihood-protection program.

Cheon Seung-Hoon raphy@donga.com