South Korea’s Seoul, the capital of a country with one of the world’s lowest birth rates, asked residents on Wednesday whether they supported a plan to pay parents 100 million won (about $72,500) in cash for every baby their family welcomes. An investigation has begun.
investigation, according to to Korea Heraldasks respondents whether they would reconsider their personal family planning if they learned they would receive a large cash incentive and whether they think the program cost, estimated at about 22 trillion won ($16 billion), is reasonable. .
The idea is the latest of a number of initiatives being proposed in the country to encourage Korean couples to think about raising children, including parental leave, medical benefits, cheaper mortgages and other long-term options. This includes existing welfare schemes that provide support to parents across the country. government.
In January, South Korea’s Ministry of Health and Welfare announced a large package of benefits for parents that included a similar upfront cash bonus, but it was worth just 2 million won (about $1,500). The new initiative adds to that bonus a “monthly salary” worth $728 for those with children under 1 year old, and half that amount for parents of children between 1 and 2 years old. .
South Korea’s birth rate will be 0.72 children per woman of childbearing age in 2023, the lowest in the world. 10th For a year in a row. Scientists consider a fertility rate of 2.1, or each woman of childbearing age having about 2.1 children in her lifetime, to be the “replacement fertility rate,” or the rate at which a country’s total population remains unchanged. A percentage of 1.3 or less is considered “very low.”
The number of newborns born in South Korea in 2023 decreased by almost 8 percent from the previous year.
Child seats on display for sale at the Mom & Baby Expo in Ilsan, South Korea, on Saturday, March 2, 2024. Last month, South Korea set a new record for the world’s lowest birth rate, as the effects of population aging loom large. health care systems, social welfare provision, and economic growth. (Gene Chan/Bloomberg via Getty)
According to the latest research, the birth rate in Seoul remains at around 30%. 0.55 children For each woman.
Inflation is an explanation for why Koreans have a much lower birth rate than people from any other country on earth, even though some of the countries with the highest birth rates in the world have higher birth rates. , home prices, and other complex financial issues often come up. have financial difficulties. South Korea is also battling a growing anti-child culture. ‘Kid-free zones’ in cafes, restaurants and even public libraries have become a trendy way to keep children away from society, making life even more difficult for parents.
In response to declining birthrates, the government of conservative President Yoon Seok-yul has prioritized top-down programs to encourage family formation. Local governments such as Seoul are coming up with innovative plans to increase the number of children in the near future. However, even those close to the Yoon administration have expressed a gloomy outlook on the situation. Finance Minister Choi Sang-mok compared South Korea to the Titanic in remarks in December.
“Ships like the Titanic have no choice but to crash before they discover coral reefs,” Choi lamented.
The $72,500 bonus being considered in a study launched in Seoul on Wednesday will join several other benefits for parents in the city. Korea Herald: “Currently, Korean parents with children receive amounts ranging from 35 million won to 50 million won through various incentives and support systems from the time the child is born until the child turns seven years old.”
Aiming to include all women of childbearing age in these benefits, Seoul authorities also announced On Monday, the government announced a paid parental leave program for freelancers and self-employed workers, including many small business owners.
“The Seoul Metropolitan Government announced on Monday that it will provide 900,000 won (approximately 65,200 yen) in paid leave to pregnant self-employed workers and freelancers.” Korea JoongAng Ilbo The government became the first local government to adopt such a measure for independent employees. Self-employed workers and freelance workers with pregnant wives will also receive 800,000 won in paid leave. ”
The paper noted that more than 800,000 people in Seoul are self-employed, running cafes, restaurants and other small businesses.
“Self-employed workers and freelancers who are experiencing the joyful moments of birth under these difficult circumstances are the true heroes of our time.” Junan He quoted Seoul Mayor Oh Se-hoon.
The lump-sum bonus being considered by the Seoul Metropolitan Government is clearly a proposal borrowed from the private construction company Booyoung Group. announced In February, the company planned to provide the same amount of 100 million won each time an employee gives birth while on the job.
“At the current rate of declining birthrate, this country is expected to be on the brink of extinction in 20 years,” Buyon chairman Lee Joon-geun said when announcing the program in February. “The company has introduced an ‘unprecedented’ incentive for its employees’ families to ease the financial burden and difficulties of balancing work and life.”
Yonhap News announced at the time, “Since January 2021, Booyoung has given a total of 7 billion won to 70 employees, both male and female, who have one or more children, the company announced in a statement.”
