Cash support can give low-income households greater control over their daily lives, and Seoul should look beyond income and employment figures to understand its impact, British social policy researcher Abigail Davis said.
Davis, a professor and co-director of the Centre for Research in Social Policy at Loughborough University, said the value of Seoul’s Stepping Stone Income project lies in allowing recipients to decide how best to meet their needs.
“By offering cash transfers, rather than vouchers or other ways of bolstering household finances, it offers dignity and choice,” she told The Korea Herald.
“People are trusted to know how best to use their resources, rather than being given assistance in prescriptive ways that may not be appropriate for all.”
Seoul launched the project as Safety Income in July 2022 to help low-income households overlooked by existing welfare programs and narrow income gaps. It was renamed Stepping Stone Income in September 2024.
The pilot’s eligibility criteria included household income at or below 85 percent of Korea’s standard median income and assets of no more than 326 million won ($247,000). Monthly payments covered half the difference between a household’s assessed income and the income threshold for its size.
For Davis, understanding the effects of such support means asking people what they can now afford, what they still lack and how their choices have changed.
“Income and expenditure data do not by themselves explain what people need but are having to go without, what sacrifices they are having to make in order to keep going,” she said.
Listening to recipients before, during and after support can reveal changes that surveys alone may miss, including what helped and what difficulties remained.
Davis has helped develop research on Britain’s Minimum Income Standard since 2006. The research brings members of the public together to discuss and agree on what different households need to live with dignity.
It considers not only basic expenses, but also the resources people need to participate in society.
“One of the most powerful aspects of MIS research is that we know not just what is needed for each individual in each household, but why those things are important,” she said.
That focus informs her view of Seoul’s project. Its evaluation covers employment, household finances, housing, education and training, health, family and social relationships, and attitudes toward life.
“One of the most appealing aspects of this project is the holistic approach it takes, understanding that multiple factors impact on people’s lives,” Davis said.
“It recognizes the importance of not only income but also people’s ability to develop and maintain connections with their family, friends and community.”
In findings released in December 2023, Seoul reported that recipients’ spending on food and medical services increased by 12.4 percent and 30.8 percent, respectively, relative to the comparison group.
Across three stages of the pilot, city figures covering July 2022 through June 2025 showed 2,076 households receiving cash support. Researchers also tracked 3,527 households that did not receive payments to compare changes in their lives, with research continuing through this year.
Drawing on the experiment, Seoul plans to launch a separate program early next year to help households facing caregiving challenges build assets and become more financially independent. Potential participants include young single-parent families and households raising children with disabilities, according to the city government.
Davis said testing policies with select groups allows researchers to examine benefits and identify ways to reduce unwanted effects. Regular evaluation is also needed as social norms and expectations change, so policies continue to reach those most in need.
But evaluating a pilot requires looking beyond what happens while payments are being made. Researchers and policymakers must also consider who is left out and what happens when support ends.
“Difficult decisions about who is included and excluded have to be made and careful thought needs to be given about how the policy/intervention will be evaluated and what happens to participants once it ends,” Davis said.
yunapark@heraldcorp.com
