S. Korea pushes up minimum cost of living guideline

SEOUL, Aug. 25 (Yonhap) -- The South Korean health ministry said Tuesday it will
raise its standard for the minimum cost of living by 2.75 percent for next year
to reflect changes in oil prices and inflation.
"The 2009 increase was determined in consideration of steep falls in oil prices
and inflation estimates by key institutions," an official of the Ministry for
Health, Welfare and Family Affairs said.
The government will set the monthly minimum cost of living for a family of four
at 1.36 million won (US$1,090) for 2009, compared to 1.33 million won this year,
according to the ministry.
The government sets the guideline annually to earmark a portion of the budget for
financial subsidies for the country's poorest people.
The rate of increase is lower than last year, when the minimum cost of living was
adjusted up 4.8 percent.
The Bank of Korea projected South Korea's annual inflation may reach 3 percent
next year, while the Ministry of Strategy and Finance forecast prices will grow
in the upper 2 percent range.
As of the end of July, the government gave subsidies to around 1.58 million
people in the country's lowest income bracket.
pbr@yna.co.kr
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