Cost-benefit analysis of community correciton welfare services

Purpose: This study empirically evaluated the economic efficiency of correctional welfare services operated by the Korea Rehabilitation Agency, which are designed to support the social reintegration of ex-offenders and prevent recidivism, and to suggest future policy directions. Methods Using the 2023 financial statements of the Korea Rehabilitation Agency, annual reports, Alio disclosure data, Statistics Korea, and cost-of-crime research from the Korea Institute of Criminology and Justice, a cost-benefit analysis was conducted. The cost components included direct program expenses, operating costs, and personnel expenditures, while the benefit components were defined as the integration of beneficiaries into the productive population through exit from basic livelihood security, increased tax revenue from vocational and employment support, and reduced social costs from crime prevention. Results: Results indicated that the total cost of correctional welfare services in 2023 was approximately 46.21 billion KRW, while the total benefits amounted to approximately 269.08 billion KRW. The net benefit was about 222.86 billion KRW, with a benefit-cost ratio (B/C ratio) of 5.82, demonstrating strong economic feasibility. On average, the program generated an annual net benefit of approximately 13.58 million KRW per individual. Among the benefits, the prevention of recidivism accounted for the largest proportion, substantially contributing to the reduction of criminal justice expenditures and victimization costs. Conclusion: These findings suggest that correctional welfare services should be recognized not merely as welfare support but as high-efficiency public investment projects that strengthen both fiscal sustainability and community safety.