Blue, red, orange candidates make pledges targeting birthrate crisis, different life stages

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Blue, red, orange candidates make pledges targeting birthrate crisis, different life stages

Published: 21 May. 2025, 17:54 Updated: 21 May. 2025, 18:20

LEE SOO-JUNG
[email protected]

Audio report: written by reporters, read by AI

Elementary school students walk into their schoolyard in downtown Seoul in March 2024. [NEWS1]

From pink-colored license plates on vehicles for families with multiple children to freezing sperm and ova, Korean presidential hopefuls are proposing all kinds of policies to convince people to have more children.

On Monday, Kim Moon-soo, presidential candidate of the conservative People Power Party (PPP), praised a corporate initiative that grants 100 million won ($71,720) per child to employees who become parents. “That’s what I have wanted to do,” Kim said.

Cash handouts appear as a main strategy to boost birthrates in proposals made by key presidential candidates, namely Kim and Lee Jae-myung of the liberal Democratic Party (DP).

However, some experts point out that such an approach would be ineffective because it offers only a short-term solution.

Korea’s total fertility rate stood at 0.75 babies per woman last year — one of the lowest in the world. The country’s population is projected to be halved by 2085, according to a 2025 report from the Organisation for Economic Cooperation and Development (OECD). Thus, addressing Korea's low birthrate problem is a key issue that the next president will have to tackle, going beyond grandiose campaign pledges.

Money solves all?

People Power Party candidate Kim Moon-soo carries a child during his campaign in Gimpo, Gyeonggi on May 21. [LIM HYUN-DONG]

PPP's Kim proposed a savings plan in which parents and the government jointly deposit the same amount of money — specifically, up to 200,000 won each month for children aged 0 to 1. The monthly saving amount would be capped at 100,000 won for children aged between 2 and 17. The PPP said the savings could amount to nearly 50 million won when the children turn 18.

DP's Lee came up with a similar idea — but without requiring parental contribution. Under his scheme, the government will deposit 100,000 won per month into an account under each child's name. The DP said the children can withdraw the savings for their college tuition and housing fees when they come of age.

Lee Sang-lim, a senior researcher from the Seoul National University Population Policy Research Center, said the cash offers are based on a poor understanding on the low birthrate situation, by thinking the fertility crisis can be “solved with money.”

Newborn babies are in cradles at a hospital in Incheon June 2024. [NEWS1]

“Without fixing structural problems, such as job security for youth and uncertainties about the future, just doling out cash to boost child birth would rather inflate other costs,” Lee said. “Service fees at private postpartum centers soared after the government raised maternity allowances, and DP candidate Lee's policies could likewise lead to an increase in private education costs.”

Prof. Seok Jae-eun from Hallym University's social welfare department said candidates should "review the effectiveness of such cash handout policies" before presenting them as their campaign policies. "Priority should be given to policies that lessen parenting burden by giving money — as an income — to those on parental leave, which has been proven effective," Seok said.

From pregnancy to child care

Democratic Party presidential candidate Lee Jae-myung pose for a photograph with children during his campaign in South Gyeongsang on May 14. [KIM SEONG-RYONG]

The rival candidates, Kim and Lee, are seemingly on different paths regarding how to help couples conceive babies, strengthen child care and housing support and provide tax benefits for families with children.

While Lee only stated his promise to strengthen medical services for couples struggling with infertility, Kim suggested more detailed plans: the state health insurance covering costs of freezing sperm and ova and state funding for fertility testing.

Lee stressed “public” support in parenting services to establish a “society where everyone partakes in child care.”

Instead of the current scheme where elementary schools autonomously decide the service period and curriculum, Lee plans to reinforce the central and local governments’ direct responsibility for after-school child care services.

Kim kept his child care-related pledges brief. He promised to expand 24-hour and emergency care facilities and provide one-on-one care for babies and infants.

Korean youth's perception toward marriage and having children. [YUN YOUNG]

When it comes to housing, Lee presented “public housing for newlyweds” as his key initiative.

Public housing, provided by state authorities, offers leases for 30 to 50 years for low-income families. Currently, a two-person household can apply for public housing if their combined monthly earnings are 5.89 million won or below.

However, as of Tuesday, Lee has not specified how many units will be supplied, nor potential locations.

Kim also promised to supply 100,000 housing units annually, which makes the residents receive state subsidies for their housing expenses. Newlyweds would qualify for three years of support. An addition of a single child will extend the benefit for three more years.

Regarding financial and tax incentives, Kim said he is willing to cut income tax by a certain amount “when families are raising children.”

Kim further promised to ease loan qualifications for newlyweds and defer debt payment dates for families with newborns. Korean newlyweds whose combined yearly income is 85 million won or less are eligible for low-interest loan programs if they wish to purchase properties valued at less than 600 million won.

In contrast, Lee vowed to expand tax exemption for credit card usage based on the number of children, as well as to cut the tax levied on tuition fees for athletic or art classes at private education facilities.

Extra perks for families with children

A baby holds an adult's hand during an education session for pregnant women at a hospital in Goyang, Gyeonggi. [YONHAP]

Another presidential contender, Lee Jun-seok from the minor Reform Party, did not outline any policies or promises about birthrate in an official document that explained his 10 major promises. His focus was on the youth population — not newlyweds or families.

The Reform Party's Lee planned to launch a loan program for people aged between 19 and 34 at a yearly interest rate of 1.7 percent. Beneficiaries are expected to borrow 5 million won per quarter and 50 million in total.

Yet, on May 9, the Reform Party candidate released a separate press release, including his idea to provide pink-colored car license plates for families with three or more children. In Korea, regular vehicles have white-colored license plates. He added that those cars would be allowed to use bus-only lanes and receive valet-parking services at public facilities.

“If we create a social atmosphere where vehicles with pink license plates enjoy a variety of benefits and receive social respect, it will make a meaningful contribution to resolving the low birthrate,” he said.

BY LEE SOO-JUNG [[email protected]]