This study examines the macroeconomic and welfare impacts of replacing South Korea’s targeted income support programs with a universal income support system. A life-cycle overlapping generations (OLG) model with heterogeneous households is constructed to reflect existing programs, such as basic livelihood assistance, child allowances, earned income credits, and public pensions, and to incorporate institutional features and household-level income distribution, including joint household labor decisions.

Simulations of five policy scenarios show that universal benefit increases aggregate output but reduces social welfare due to weaker safety net effectiveness. Program impacts vary, suggesting well-designed targeted schemes may outperform universal income support. Findings also highlight the importance of aligning income support policies with household needs while ensuring fiscal sustainability.

Abstract (ENG)
Preface
Summary (KOR)

Chapter 1. Background and Purpose of the Study

Chapter 2. Model Economy

Chapter 3. Benchmark Economy
　Section 1. Setting the Benchmark Economy
　Section 2. Analysis of the Benchmark Economy

Chapter 4. Policy Simulation Experiments

Chapter 5. Summary and Conclusion

References