BASIC LIVELIHOOD SUBSIDIES

[Anchor Lead]

Some 1.5 million people in Korea living on basic livelihood subsidies are struggling these days due to inflation. Their subsidies have remained unchanged in the past year despite inflation. Changing the relevant regulations is not going to be easy, but there are calls for them to be addressed given the tough economic situation.

[Pkg]

This man relies on basic livelihood subsidies. These days he has to think twice even before buying daily necessities such as eggs.

[Soundbite] "(How much are these eggs?) 8,500 won."

He receives a fixed monthly subsidy of 583,000 won, but prices are soaring.

[Soundbite] (Subsidy Recipient) : "(What items are more expensive now?) Instant noodles and eggs. Sometimes I buy nearly expired products that cannot be sold anymore."

Those relying on such subsidies spend the majority of their income on food. Last month food prices surged 7.7 percent on-year.

[Soundbite] (Subsidy Recipient) : "Even ordinary people are struggling these days. It's even harder for people like me."

The government has introduced emergency measures. From last week, those eligible for basic livelihood subsidies are also receiving emergency livelihood funds. But they are not enough. This man living alone will receive 400,000 won in emergency living funds through the end of the year. That's just 60,000 won a month.

[Soundbite] (Subsidy Recipient) : "I thought I would get more in living subsidies, but they are the same. They are unchanged."

Despite the soaring prices, basic livelihood subsidies remain unchanged. This year's subsidies were set in August last year. They were estimated not on consumer prices, but on the median household income, which does not grow in line with inflation. This results in less money for those who need support from the government to make a living.

[Soundbite] Park Young-ah(Former member of Central Basic Livelihood Security Committee) : "People who live on the minimum cost of living are hit hardest by inflation. The gap with the median income should be eliminated as much as possible and inflation should also be taken into account."

Basic livelihood subsidies for next year will also be decided on August 1 based solely on the median income.