The ruling Democratic Party(DP) and the government have decided to increase the monthly basic pension given to elderly low-income citizens to 300-thousand won from next year, two years earlier than initially planned. 

The decision to raise the basic pension for those aged 65 and older in the bottom 20 percent of the income bracket was made Tuesday during a meeting at the National Assembly on ways to support low-income families and review economic conditions in the second half. 

A basic pension of 200-thousand won a month is currently paid to those in the lower 70 percent of the income bracket. DP’s chief policy maker, Kim Tae-nyeon, said in a briefing after the meeting that the participants also agreed to raise that payment to 250-thousand won in September. 

They also decided to expand the amount of tax refunds for low-income households and expand the number of beneficiaries as part of efforts to cope with the possible side effects of the minimum wage hike.