Differences in social insurance, public assistance, and social services: Comparing social security systems at a glance
- Korea’s Basic Social Security Act divides social security into social insurance, public assistance, and social services.
- Social insurance prepares for risks through insurance premiums, and public assistance supports people who are having difficulty making a living through taxes.
- When comparing foreign systems, the implications can be clearly seen by creating a table based on financial resources, targets, and universality.
Contents
I've often heard that "the national pension is social insurance and basic living security is public assistance," but it's confusing to explain what the criteria are for dividing it. Since it is the basic content of social welfare policy theory and social security theory, we have compared and organized it by standard.
What are the three pillars of social security?
The Basic Act on Social Security defines social security as social insurance, public assistance, and social services to protect citizens from social risks such as childbirth, childcare, unemployment, old age, disability, disease, poverty, and death and to improve the quality of life. The three systems complement each other and create a life safety net.
This division is directly related to the flow of money in the household. Knowing which system the four major insurance premiums deducted from your salary, various allowances run through taxes, and care services for which you pay a portion of the service fee belong, will help you calculate social security costs and benefits for your household.
Compare by criteria
| Standard | Social insurance | Public assistance | Social services |
|---|---|---|---|
| Financial resources | Focus on insurance premiums for subscribers and users | Taxes (national/local governments) | Taxes and user burden, etc. |
| Target | Registered citizens | People having difficulties making a living (means test) | All citizens in need of help |
| Personality | Prepare for risks | Guarantee minimum living standards | Provide services such as care, counseling, and rehabilitation |
| Yes | National pension, health insurance, employment insurance, industrial accident insurance, long-term care insurance for the elderly | National basic livelihood security, medical benefits, basic pension | Elderly care, activity support for the disabled, child care |
첫 장에 오늘 말할 순서를 보여 주면 발표가 한결 정돈돼 보이더라고요. 슬라이드 글자는 크게, 짧게 쓰는 걸 한번 챙겨보면 좋을 것 같아요.
Comparison with the American system
The United States operates social insurance such as Social Security pension (OASDI) and Medicare, medical insurance for the elderly, and provides public assistance such as Medicaid and food assistance to low-income people. However, it is very different from our country in that there is no single national health insurance, so many people rely on private health insurance through their jobs. Because of this difference, the share of medical cost burden and insurance premium structure in household expenditures also varies, so comparative projects often deal with both the advantages and financial burden of universal health insurance.
Find implications from comparison
When comparing foreign systems, it is better to look at the method of raising funds, universality of target, salary level, and blind spots in the system rather than "which country is better." And, if you connect the implications for our country's system with changes such as low birth rate, aging population, and platform labor, you gain depth. When citing figures, please indicate official data from the Ministry of Health and Welfare or other government agencies and the base year.
Assignment writing tips and references
For assignments, the flow will be natural if you write in the following order: Concept → Comparison of the three systems → Foreign cases → Comparison with Korea → Implications. If you want to share the background of welfare state expansion, Social Welfare Policy Development Theory. Campus-style social security system comparison material is 1 page long, so it can be helpful for those who want to quickly check the main points of a social security theory assignment.
Related wiki: Moral hazard
Related wiki: Public goods
FAQ
What are the three parts of Social Security?
According to the Framework Act on Social Security, it is divided into social insurance, public assistance, and social services.
What are the four major insurances?
These are national pension, national health insurance, employment insurance, and industrial accident compensation insurance.
What are the sources of public assistance?
It is not an insurance premium, but a tax from the state and local governments.
What is the biggest difference from the United States?
A representative example of the United States is that there is no single health insurance for all citizens, so there is a high dependence on private health insurance.