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A sickness benefit for all, leaving no one behind.

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South Korea's sickness benefit program, while aiming for inclusivity, risks excluding precarious workers due to low benefits and long waits. This "paradox of redistribution" highlights the need for equitable, people-centered reforms to achieve true social protection.

Keywords:
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Area of Science:

  • Public Health Policy
  • Social Protection Systems
  • Labor Market Economics

Background:

  • South Korea launched a pilot sickness benefit program in 2022, expanding to 14 regions by 2025.
  • The program aims to enhance social protection but faces challenges in its current structure.

Purpose of the Study:

  • To critically examine the design of South Korea's sickness benefit program.
  • To analyze how current features may exacerbate existing labor market inequalities.
  • To assess the program's alignment with universal health coverage goals.

Main Methods:

  • Qualitative analysis of program design features and eligibility criteria.
  • Application of the
  • paradox of redistribution
  • framework.
  • Examination of potential impacts on vulnerable worker populations.

Main Results:

  • The program's low replacement rates (60% of minimum wage) and extended waiting periods create perverse incentives.
  • Precarious workers are systematically disadvantaged, undermining inclusive goals.
  • The restriction in the second phase to the bottom 50% income bracket risks worsening the paradox of redistribution.

Conclusions:

  • Current design choices may undermine universal health coverage by excluding the most vulnerable.
  • Successful implementation requires integrating equity, people-centered, and gender-transformative perspectives.
  • The program has the potential to reshape structures producing health and economic inequalities if reformed.