In the context of the globalization of economy, structural reform of labor market, and paradigm shift in welfare policy, Korea has introduced, in October, 2000, a new program,`National Basic Livelihood Protection(NBLP),based on welfare-to-work policy,...
In the context of the globalization of economy, structural reform of labor market, and paradigm shift in welfare policy, Korea has introduced, in October, 2000, a new program,`National Basic Livelihood Protection(NBLP),based on welfare-to-work policy, replacing the old program limited to poverty protection. This paper aims to suggest needed policy directions and measures that should supplement the NBLP program for the intended `welfare-to-work` principles to be productively realized in the application process. In particular, we suggest and describe work-inducive income tax credit system, drawing on the EITC(U.S.) and WFTC(U.K.), that need to be attached to the benefit scheme of the NBLP. And we further detail how it could be linked to the unemployment benefit scheme as part of active labor market program. In this paper, citing policy experiences in the advanced countries, we also point out that, for a successful implementation of the welfare-to-work policy, first, an effective PES(public employment service) and activation program are appropriately settled and, second, decent work opportunities should be provided to the target group so that they could be on their own by working and earning by themselves.