Gov't to boost childcare subsidies, increase soldiers' pay in 2024

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Gov't to boost childcare subsidies, increase soldiers' pay in 2024

Published: 01 Jan. 2024, 18:28 Updated: 01 Jan. 2024, 18:57

CHO JUNG-WOO
cho.jungwoo1@joongang.co.kr

A family holds hands and walks down a street in Myeong-dong, central Seoul on Dec. 24. [NEWS1]

Policies in welfare, transportation, real estate and other sectors will be newly adopted or amended in 2024.

The Ministry of Economy and Finance shared changes in over 300 policies and new measures anticipated in the new year on Sunday.

The government mainly focused on marriage and childbirth to increase the country’s staggeringly low fertility rate and support child care. The government will provide subsidies of up to 39 million won ($30,000) to parents with children 18 months old or younger when they both take parental leaves, paying parents 2 million to 4.5 million a month for the first six months of leave.

The gift tax deduction ceiling for newlyweds will increase from the current 50 million won per individual to as much as 150 million won. If the bride and the groom are both gifted with assets, the limit will go up to as much as 300 million won. However, this will only apply to properties received from direct family members within two years of the date of marriage registration or childbirth.

Government-funded after-school classes aimed to reduce the burden of working parents will expand to every elementary school in Korea in March. Financial support for single parents will increase by 10,000 won to 210,000 won. Underage single parents raising 1-year-old children or younger will receive 400,000 won, up 50,000 won from the current subsidy provided.

Some 70,000 houses will be specially supplied to families with a 2-year-old child or younger. The parent must not own a home to be eligible to apply for the scheme. A special loan product for parents with a 2-year-old child or younger and earning less than 130 million won a year will be offered in the new year.

The country’s minimum hourly wage rose to 9,860 won, up 2.5 percent from last year.

Changes will also be applied to many businesses in Korea.

Multinational corporations with annual sales of 750 million euros, as stated on consolidated financial statements, including Samsung and Hyundai, will be required to pay additional taxes if the effective tax rate applied in a particular company is less than 15 percent.

The measure was agreed upon by both the OECD and G20 countries.

Soldiers stand at a military shooting range in Cheorwon County, Gangwon during this year's first live-fire artillery exercise held Monday. [ROK ARMY]

In the defense sector, the monthly wages of sergeants will increase to 1.25 million won from the current 1 million won. Corporals will receive a million won.

From late January, mugshots of grave crime suspects, including those involved in assault and drug crimes, can be publicly disclosed without the consent of the suspects. Authorities can also force convicted stalkers to wear electronic tags for GPS monitoring.

To relieve the restaurant labor shortage, the government will allow foreigners to work at Korean restaurants in 100 major regions starting in April.

A person tags a card at a subway turnstile to get into Seoul Station in downtown Seoul on Aug. 29. [NEWS1]

In May, the Ministry of Land, Infrastructure, and Transport will introduce the so-called K-pass, a transit measure that will return 20 to 53 percent of the transportation fee if an individual uses public transportation over 15 times a month. Twenty percent will be returned to ordinary users, 30 percent to young people and 53 percent to low-income earners.

The return measure will be applied for as many as 60 rides a month.

BY CHO JUNG-WOO [cho.jungwoo1@joongang.co.kr]