In this paper, I defined the concept and scope of social services, and outlined the situation and characteristics, and then discussed the prospects of social services in Korea.
Korean social services have been rapidly expanded over the last decade, but still small in scale compared to other OECD countries. Because the privatization of service delivery is widespread, the principal-agent problem is a very crucial issue.
The recipient subsidy scheme such as voucher program is a key tool to enhance the quality of services supplied by private agencies. However, in order to work properly, the scheme should meet following condition. Ensuring consumer’s choice based on the elimination of information asymmetries and competitions between providers.
For the future development of social services in Korea, the following challenges should be addressed: ① establishing appropriate governance system; ② increasing care and education services to disadvantaged children and youth; ③ enlarging the capacity and size of providers; improving the employment conditions of social service jobs.