Median income for a four-person household next year to reach 6.92 million won, up 6.7%, the highest on record

[Financial News] Next year’s median income for a four-person household has been set at 6,929,885 won, up 6.7% from this year. That is the largest increase on record. The median income serves as the benchmark for government welfare programs, including the Basic Livelihood Security system and various benefit payments. The Livelihood Benefit paid to basic livelihood recipients is also expected to rise sharply.
On the 28th, the Ministry of Health and Welfare held the 80th meeting of the Central Livelihood Security Committee and deliberated and approved the 2027 median income, eligibility standards for each Basic Livelihood Security benefit, and minimum guarantee levels.
Health and Welfare Minister Jeong Eun-kyeong said, "The record-high 6.70% increase in the 2027 median income reflects the government's determination to provide stronger protection for those facing the greatest hardship." She added, "The government will review broader and more fundamental reforms, including improvements to the family support obligation system, in the 4th Comprehensive Plan for Basic Livelihood Security to be drawn up later this year."
With this decision, next year’s median income has been finalized at 6,929,885 won for a four-person household. That is a 6.7% increase from this year’s 6,494,738 won. It is the highest growth rate since the median income benchmark began in 2015. The previous record was the 2026 increase of 6.51%.
The median income for a one-person household will rise to 2,736,042 won next year from 2,564,238 won this year, an increase of about 172,000 won. The increase marks a record high for the fifth consecutive year.
The median income is a key benchmark used to determine eligibility for 80 government welfare programs, including the Basic Livelihood Security system.
Eligibility standards and minimum guarantee levels for each benefit were also finalized.
Next year’s rates were set at 32% for the Livelihood Benefit, 40% for the Medical Benefit, 48% for the Housing Benefit, and 50% for the Education Benefit, unchanged from this year.
Eligibility for each benefit is determined by applying a fixed percentage to the median income.
The maximum Livelihood Benefit payment for a one-person household will rise by about 55,000 won, from 820,556 won this year to 875,533 won next year.
For a four-person household, it will increase by about 140,000 won, from 2,078,316 won this year to 2,217,563 won next year.
The Medical Benefit threshold was set at 40% or less of median income, at 1,094,417 won for a one-person household and 2,771,954 won for a four-person household.
This year, in particular, the government revised the method used to calculate the median income, which had been applied for six years since 2021. The new method adjusts the growth rate by reflecting major social and economic indicators such as the latest Consumer Price Index (CPI) and real economic growth rate (GDP). It also allows for additional adjustments to the growth rate by considering factors such as the reduction of relative poverty, the adequacy of Basic Livelihood Security benefits, and the country's fiscal conditions. However, the principle of multiplying this year’s median income by the latest three-year average growth rate from the Survey of Household Finances and Living Conditions was maintained.
The new calculation method will be reviewed again after being applied for three years and evaluated.
[email protected] Jeong Sang-gyun Reporter