Gov't raises monthly child care subsidies for newborns to 1M won

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Gov't raises monthly child care subsidies for newborns to 1M won

Published: 11 Jan. 2024, 18:25 Updated: 11 Jan. 2024, 19:32

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

A nursing assistant holds a newborn at a public postpartum care center in Yanggu County, Gangwon, on Dec. 4, 2023. [YONHAP]

The Ministry of Health and Welfare announced on Thursday that it will increase monthly subsidies for parents of newborns starting this year.

From January, parents with a baby less than one-year-old will receive 1 million won ($760) every month, up 300,000 won from last year. Parents with a one-year-old child will receive 500,000 won per month this year, which is 150,000 won higher than the previous year.

The so-called parental allowance was introduced last year to alleviate the financial burden on young parents. The move also comes as Korea struggles with its staggeringly low fertility rate, which has dropped for the seventh year to the lowest globally at 0.78 as of 2022.

“The government will make sure to take responsibility for the economic burden of the early stage of child care by expanding the allowances from the new year,” an official at the Welfare Ministry said, adding that the ministry will expand and strengthen related programs and schemes for practical support for parents.

Other parental supports, such as hourly child care services at daycare centers, will be expanded for parents. The number of classes at daycare centers that offer hourly care will be raised to 2,315 from the current 1,030. These new classes will begin in July.

Cutting the cost of child care is one of the most urgent problems to resolve to turn around Korea's birthrate, according to a survey announced by the Presidential Committee on Aging Society and Population Policy and the Ministry of Culture, Sports and Tourism in November last year. Some 34 percent of respondents said the issue should be addressed to overcome the constantly dropping fertility rate.

Those eligible for the parental allowance scheme should apply within 60 days of childbirth to receive the subsidy from the month the baby was born. After 60 days from the child's birth, parents will only be able to receive financial support from the month the applications were submitted.

Parents can apply for the scheme at community service centers in their neighborhood or on the Government24 website.

The increased subsidy will be sent to the applicants in cash on the 25th starting this month. Those who have already applied for the scheme need not apply again to receive the increased amount.

However, those who send their children to daycare centers or use child care services will receive them through child care vouchers, where only the amount excluding the voucher from the monthly allowance will be given out in cash.

The 1-million-won subsidies given to households with children under one year old going to daycare centers will consist of 540,000 won of child care vouchers and 460,000 won in cash. Those with one-year-old children using child care services will receive 475,000 won in vouchers for child care facilities and the rest, 25,000 won, in cash.

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