B. CORE ISSUES I. Social Security 1. Low Budget Rate for Social Security (187-188)1 19. Even though governmental budget for ESCR has steadily increased during the last eighteen years, the level of protection of ESCR in the Republic of Korea is relatively lower than other developed welfare states. Dividing average income into market income and social income, the latter, comprising unemployment allowances, childcare subsidy, basic old-age pension, health insurance etc., constitutes only 7.9% in Korea compared to the 31.9% average of OECD countries. Diminishing job opportunities due to economics crisis poses a serious threat to Korean wageworkers as they rely mostly on market income for their livelihood. Therefore, it is necessary to make vigorous effort to expand social welfare resources for enhancing social security level. 2. Increase of People in Poverty (194 and 196) 20. In regard to social welfare budgeting, there is an urgent need to solve the problem of blind-spots resulting from economic downturn and institutional loopholes. An estimated 1.6 million households are placed on health insurance suspension for not being able to pay the fees and almost half of local subscribers of the national pension system are exempt from the duty to subscribe. Only 40% of employed workers are covered by employment insurance as low wage and non-regular workers are excluded from the system. Seventeen percent (1 million) of the total population that is in poverty have been excluded from basic benefits such as livelihood subsidies, medical subsidies, and rehabilitation subsidies as a result of the stricter criteria to be eligible for benefits. The Government estimates that the population situated in various blind-spots to be around 3.4 million. The safety-nets established in response to the economic crisis are not sufficient for people who newly fell into the poverty and quasi poor class from experiencing further suffering. 1 The numbers in the brackets hereafter refer to the paragraphs in the Replies by the Government of the Republic of Korea to the list of issues (E/C.12/KOR/Q/3). 6