Despite its status as a high-income country, poverty in South Korea remains a persistent challenge as the country strives to achieve Sustainable Development Goal (SDG) 1, which is to end poverty. However, the newly proposed 2025 budget plan shows potential for significant progress to occur at both the domestic and international levels. Here are some updates on SDG 1 in South Korea.

Tracking Progress on SDG 1 in South Korea

All UN member states adopted the 17 SDGs in 215, which form the backbone of the global 2030 Agenda for Sustainable Development. Since then, South Korea has steadily improved its SDG Index score, reaching 77 out of 100 last year and ranking 33rd among 166 countries according to the Sustainable Development Report 2024.

More specifically, when it comes to SDG 1 in South Korea, the country has managed to reduce the relative poverty rate from 18.5% in 2015 to 14.9%. Going forward, this rate will likely to decline further, especially as the annual living allowance was increased by 1.41 million KRW (approximately $1,000 USD) compared to last year under the new basic livelihood security program.

However, the Sustainable Development Goals Index marks South Korea’s progress on ‘no poverty’ at the stage of ‘challenges remain,’ which means that the country is moderately improving but this is not enough to achieve the goal. Such challenges include old-age poverty. Although it has dropped from 43.6% in 2016, it remains at an alarming rate of 39.8% – the highest among other OECD states. This is particularly troubling considering South Korea’s fast-aging society as more than 20% of the population is now aged 65 or over.

Policies To Tackle Domestic Poverty

In response to these challenges, the 2025 budget proposal lays out measures specifically to address elderly poverty. A major component is the expansion of the Basic Pension Program, which allocates 70% of public transfers to senior citizens as opposed to the significantly smaller proportion of 25.9% in 2016.

The new budget proposal not only aims to tackle elderly poverty but also introduces specific measures targeting various dimensions of poverty in South Korea to support other marginalized groups. For instance, the government plans to increase the number of beneficiaries of disability-related employment incentives from 633,000 to 756,000 by expanding its budget by 6.6%. In addition, the proposal includes the launch of the ‘National Advance Payment System for Child Support,’ which supports single-parent families where child support is unpaid since they are also particularly vulnerable to poverty.

The 2025 budget plan addresses poverty among younger generations as well by increasing the stipend granted to young adults to support them with financial independence. The plan moreover expands the youth work experience program to accommodate 58,000 participants to help with improving job prospects as unemployment is often the root cause of poverty among young adults.

Extending Impact Beyond Borders 

South Korea’s efforts to alleviate poverty extend beyond its borders. Since its reclassification as a developed country in 2021, South Korea has expanded its role in international development. The 2025 budget plan allocates 6.5 trillion KRW (approximately $4.8 billion USD) in Official Development Assistance – a 3.8% increase from last year. The country has also joined the Global Alliance Against Hunger and Poverty, further solidifying its commitment to addressing poverty in developing countries.

In addition to financial support, the country is also sharing its own experience in addressing poverty in South Korea and the development model they used. One example is the Saemaul Undong (New Village Movement) Project which is now adapted into overseas Saemaul Projects. These rural development programs based on Korea’s own transformation in the 1970s now support 42 villages in 10 countries, helping establish community infrastructure and improve agricultural productivity. By focusing on empowering local communities, these initiatives allow sustainable economic growth that breaks the cycle of poverty.

Looking Ahead

As a former aid recipient that is now a donor state, South Korea shows how efforts through social policy and international cooperation can lead to real progress. Although SDG 1 in South Korea has yet to be fully achieved, the 2025 budget plan, with its expanded support for vulnerable groups and initiatives for international development, marks a significant step toward the goal of ‘no poverty.’

– Lucy Cho

Lucy is based in Edinburgh, Scotland and focuses on Good News for The Borgen Project.

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