2027 Minimum Living Cost Increase: What Changes for Personal Rehabilitation Living Costs and Repayments

From 2027, the minimum living cost standard recognized in personal rehabilitation (gaein hoesaeng) will change. Basic living costs in personal rehabilitation are set based on the standard median income (gijun jungwi sodeuk), so this increase directly affects the repayment amount you must pay each month. We have summarized the 2027 change in minimum living costs, how it changes repayment amounts, and when the new standard applies, for anyone preparing for personal rehabilitation.

2027 minimum living costs: standard median income up 6.70%

On July 28, 2026, the Ministry of Health and Welfare decided at the Central Livelihood Security Committee meeting to raise the 2027 standard median income by 6.70% over the previous year. As a result, the amount equal to 60% of the standard median income used in personal rehabilitation has also risen. The larger the household, the bigger the increase in monthly living costs.

This means that even if income stays the same, a debtor who files for personal rehabilitation in 2027 may be able to have more living costs recognized.

When living costs rise, personal rehabilitation repayments may fall

This is the question people exploring personal rehabilitation ask most often. To answer first: when living costs rise, the monthly repayment amount may decrease. This is because the monthly repayment in personal rehabilitation is based on disposable income, which is income minus the living costs and necessary expenses recognized by the court.

Let us compare, assuming a 1-person household with a monthly income of 2.5 million won after taxes and social insurance premiums, and that the full basic living cost is recognized.

Even with the same income, the estimated monthly repayment differs by 103,082 won depending on which year's living cost standard applies. If the same conditions continue for 36 months, the difference could be about 3.71 million won.

However, this is a simplified calculation to show the effect of the living cost increase. In an actual personal rehabilitation case, the final repayment amount and repayment period depend on the debtor's assets and liquidation value, income, dependents, and whether the repayment plan can be carried out to the end.

Getting additional living costs recognized beyond basic living costs

60% of the standard median income is not an absolute living cost limit applied equally to every debtor. Additional living costs may be recognized depending on living conditions or dependents. Typical items reviewed include ongoing housing costs, medical expenses due to illness, and education costs for minor children.

That does not mean all money actually spent becomes additional living costs. You must justify with objective evidence that the expense is necessary, ongoing, and at a reasonable level, and the court makes the final decision on whether to recognize it.

The same applies to dependents. Living with family does not mean that the number of household members on your resident registration is automatically recognized as the number of dependents in personal rehabilitation. The spouse's income, the children's ages, and whether you actually support them are all reviewed. So if you are preparing for personal rehabilitation, do not just look at the living cost table by household size; work out specifically how much living cost can actually be recognized in your situation.

When the 2027 minimum living cost applies

The Ministry of Health and Welfare notice on the 2027 standard median income takes effect on January 1, 2027. In principle, living costs in personal rehabilitation are also calculated based on the standard median income at the time you apply for commencement of personal rehabilitation proceedings. Therefore, if you file for personal rehabilitation on or after January 1, 2027, living costs are in principle calculated using the 2027 standard median income.

The new living costs do not automatically apply to cases already in progress or cases where the repayment plan has already been confirmed by the court. Whether living costs in an existing case can be changed must be judged separately, based on how far the proceedings have gone and the individual circumstances.

Nor is it necessarily advantageous to postpone filing for personal rehabilitation simply because living costs are going up. If creditors are pursuing seizure, compulsory execution, or continued collection demands, filing promptly may be more important.

Key points at a glance

• The 2027 standard median income rose 6.70%, so the minimum living cost for personal rehabilitation has also gone up.
• When living costs rise, the monthly repayment changes even on the same income, and it may go down.
• If you file on or after January 1, 2027, the new standard applies in principle, and additional living costs and dependents must be justified separately with evidence.

Check in a consultation exactly how much living cost can be recognized given your income and family situation.

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Last reviewed : 2026-11-15 This article provides general legal information, and specific judgments are given through consultation.