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Social protection in South Korea
South Korea’s social protection system has undergone a profound transformation from a developmental welfare state, in which social protection policies were subordinated to the economic development goal, to a universal welfare state.
This study traces this trajectory by examining six key programmes―Industrial Accident Compensation Insurance, National Health Insurance, National Pension, Employment Insurance, the National Basic Livelihood Security Scheme, and the Basic Pension―focusing on their functions, policy design, coverage expansion, and responses to new social risks.
Findings show that initial programmes targeted formal-sector workers to support industrialization, but were gradually expanded to encompass broader populations. They were sequentially extended from large enterprises to small firms and then to the general population, with contribution rates increased incrementally to ensure administrative feasibility and fiscal sustainability. Democratization and electoral competition opened policy windows for universalization, while economic crises accelerated programme inclusivity.
The analysis reveals that social protection facilitated structural economic transformation while progressively recognizing social rights. However, persistent labour market dualism, population aging, and high elderly poverty underscore the need for recalibrating Korea’s welfare system toward greater inclusivity and sustainability.
This study traces this trajectory by examining six key programmes―Industrial Accident Compensation Insurance, National Health Insurance, National Pension, Employment Insurance, the National Basic Livelihood Security Scheme, and the Basic Pension―focusing on their functions, policy design, coverage expansion, and responses to new social risks.
Findings show that initial programmes targeted formal-sector workers to support industrialization, but were gradually expanded to encompass broader populations. They were sequentially extended from large enterprises to small firms and then to the general population, with contribution rates increased incrementally to ensure administrative feasibility and fiscal sustainability. Democratization and electoral competition opened policy windows for universalization, while economic crises accelerated programme inclusivity.
The analysis reveals that social protection facilitated structural economic transformation while progressively recognizing social rights. However, persistent labour market dualism, population aging, and high elderly poverty underscore the need for recalibrating Korea’s welfare system toward greater inclusivity and sustainability.
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