Steps Are Taken To Patch Safety Net for Elderly, Working Class

The government announced plans at a special Blue House meeting Thursday to implement a wide array of measures designed to assist lower- and middle-income families and the elderly. The steps include a rental cooperative system for people who do not own their homes, rezoning greenbelt areas to build more rental housing and an insurance plan to provide the elderly with proper and affordable medical care.

President Kim Dae-jung presided over the meeting attended by the deputy prime minister for the economy, Jin Nyum, 10 other cabinet ministers, the chief policymakers for all three political parties and the heads of several think tanks.

In a report to the president, the deputy prime minister said, "We have laid the foundation to protect the welfare of the people, having completed four social insurance plans － Employment Insurance, Medical Insurance, National Pension and Industrial Accident Compensation Insurance, and the National Livelihood Act.

"However, the overall social network is not sufficiently in place yet to ensure that these benefits go to the intended beneficiaries. The elderly and the disabled are not receiving the care they deserve, and the slow economic recovery is hindering improvement in income distribution."

In response, President Kim ordered his cabinet members to ensure that welfare benefits reach the people who need them.

Besides providing medical care to the elderly, the cabinet decided to expand the amount of rental housing available for middle income and poor families. The government will mandate that all housing projects set aside 20 to 27 percent of their construction for rental housing. For publicly-developed housing, the government will require 30 percent be set aside for rental units.

The government and the ruling Millennium Democratic Party agreed to expand the role of thrift institutions, such as mutual saving and finance companies, community credit cooperatives and credit cooperatives, to better accommodate the needs of the working classes, who rely on those financial institutions most.

by Song Sang-hoon