Good Practices and Innovations in Public Governance 2003-2011

2010 Category 2: Republic of Korea
Replicability and Sustainability
Sustaining and expanding the Hope-Plus and Ggum-Na-Rae Savings project depends
in part on having adequate financing. Therefore, it is necessary to identify a stable
source of financial resources by forging an alliance with private fund-raisers who
share an understanding of the purpose of the project. In particular, efforts should be
made to establish cooperative relations with the philanthropic arms of large companies
or religious organisations to obtain financial support in the mid- to long term.
It is also necessary to raise awareness of poverty across society and to actively utilize
charitable resources within the community. Aside from financial assistance, various
educational and cultural or welfare services that help develop a sense of economy,
vocational skills and child care capacity should be provided in a comprehensive manner.
In addition, it is also necessary to prepare follow-up self-support programmes
that can be adopted after participants complete the savings programme. When a local
government carries out this project with the focus on these issues, the synergistic effects
will be maximized.
In terms of regulatory sustainability, it is necessary to enact laws supporting asset
creation for the poor so that the project can be implemented in a stable manner. Under
the current system, the poor instantly lose their eligibility for welfare benefits
from the NBLS once their assets exceed the minimum subsistence level. Therefore,
it is likely that those who are close to the minimum subsistence level will refrain
from joining the project. For this reason, it is important to make reforms so that the
poor can maintain their benefits eligibility for a certain period while receiving longterm
assistance with self-reliance.
As Seoul City pushes forward with the Hope-Plus and Ggum-Na-Rae Savings programmes,
other efforts to promote individual development accounts (IDAs) are also
under way. In October 2009, a government-led IDA pilot project began to recruit
participants in four metropolitan cities or provinces (Gyeonggi, Incheon, Busan and
Jeonbuk). The project supports low-income families where the head of the household
is under the age of 34. In addition, the Korean government launched the Hope
Building Savings Account programme in 2008, targeting 180,000 people nationwide.
To encourage NBLS recipients to work, the programme allocates up to
300,000 won (about $270) to those who earn more than 70 percent of the minimum
subsistence costs. Half of the expenses are supported from the central and local
governments, and the remainder is covered by private sponsorship. The accumulated
funds are given to participants only after they get de-listed from NBLS. Meanwhile,
many local governments (Changwon City, Namyangju City, Pyongtaek City,
Dalseo District of Daegu City, etc.) are also implementing initiatives modeled after
the Hope Dream project.
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