Localities struggle as gov't expands benefits for multi-child families

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Localities struggle as gov't expands benefits for multi-child families

  • 기자 사진
  • LEE SOO-JUNG
Nurses take care of newborn babies at a nursery at a maternity hospital in Daejeon, Korea on Oct. 28. [KIM SEONG-TAE, JOONGANG PHOTO]

Nurses take care of newborn babies at a nursery at a maternity hospital in Daejeon, Korea on Oct. 28. [KIM SEONG-TAE, JOONGANG PHOTO]

Local governments face onerous financial burdens as they extend benefits previously reserved for families with three children or more to families with two.
 
The Yoon Suk Yeol government announced in August plans to make families with two children eligible for a wide range of benefits, part of the administration's efforts to turn around the country’s record-low fertility rate.
 
These benefits include discounts on public transportation, public parking, cultural events such as museums and performances, welfare services and even taxes.
 
With the changes, local governments must give discounts to more families for services and public facilities.
 
Local governments implement the changes differently.
 
Children make calendars for their families at Jeonggwan Museum in Gijang County, Busan, Southern Korea on Jan.3. [YONHAP]

Children make calendars for their families at Jeonggwan Museum in Gijang County, Busan, Southern Korea on Jan.3. [YONHAP]

The Busan City Government predicted that the broadened definition of a “multi-children family” will raise the number of families in the city eligible for benefits fivefold from 25,000 to 157,000.
 
In Busan, the changes have been applied starting Tuesday.
 
Busan National Sports Center, a public fitness and health facility, on Oct. 19 announced that it is discontinuing its child development program, its most popular service over the past two decades.
 
The curriculum under the program includes classes on sports, arts and even traditional Korean music, gukak.
 
However, the sports center ended the program as it faced massive financial losses from the predicted surge in families eligible for 50 percent discounts.
 
Before the threshold change, only 10 percent of enrollees were eligible for the discount. However, after the change, enrollees eligible for the discount would climb 77 percent.
 
The center estimated its annual net loss would surge from 120 million won ($88,481) to 500 million won under the change.
 
The National Olympics Memorial Dormitory Busan Social and Sports Center faces a similar challenge.
 
With more families paying less due to the expanded discounts, its annual net loss is expected to triple from 210 million won to 637 million won.
 
“The city government will come up with measures to cover the losses generated from the changes,” a Busan city official said.
 
While local governments usually cover the losses of public facilities, some jurisdictions are running on a tight budget.
 
Visitors browse baby products for twins at Daegu Baby & Kids Fair on Aug. 17. [YONHAP]

Visitors browse baby products for twins at Daegu Baby & Kids Fair on Aug. 17. [YONHAP]

The Daegu government, which will begin adopting changes next January, will continue restricting public transportation discounts to families with three children or more.
 
The city government currently spends 3.6 billion won every year to cover losses incurred by discount public transportation discounts to roughly 20,000 families with three or more children.
 
This loss would increase exponentially as the number of households benefiting from the public transportation discount would increase by 115,000.
 
“We’re faced with challenges because we have to provide benefits within our limited means,” a Daegu official said.
 
“Local governments differ in their tax sources and financial situations,” said Kim Dae-rae, a professor emeritus at Silla University. “The policies can work only when the central government covers at least some of the spending on birth, child care and welfare.”
 
Decrease of New Born Babies [Statistics Korea]

Decrease of New Born Babies [Statistics Korea]

Korea currently has the lowest fertility rate in the world, at 0.78, a number that dropped to 0.70 in the second quarter of this year.
 
The fertility rate is the average number of births projected for a woman during her reproductive years. A total fertility rate of above 2 is needed to sustain a country’s population if not accounting for migration.

BY KIM MIN-JU, LEE SOO-JUNG [lee.soojung1@joongang.co.kr]
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