S.Korea’s public spending on maternity, child care falls short of OECD average

Government funds for tackling the low birth rate last year mostly targeted housing costs

Getty Images 
Getty Images 
Kyung-Mok Noh 1
2023-04-26 10:24:14 autonomy@hankyung.com
Economy

South Korea’s government budget for tackling the nation's low birth rate has risen to 2.25% of GDP, but housing support accounts for a major portion. The share of childbirth and other related funding such as childrearing allowances, however, is below the average of the Organisation for Economic Co-operation and Development (OECD).

At a major forum on national issues held Tuesday at the National Assembly in Seoul, the National Assembly Budget Office released a report on the status and analysis of fiscal projects to tackle the low fertility rate. The budget for this purpose ballooned from 2.1 trillion won ($1.5 billion) in 2006 to 51.7 trillion won last year.

Of this amount, 23.4 trillion won or 46.1% went toward housing support and 15.4 trillion won toward housing purchases, lump-sum home rentals and public rental loans.

"Housing support is creating the optical illusion that the budget for tackling the low birth rate is larger than it actually is," the office said. “The average annual income of a newlywed couple is 78.8 million won, but the income cutoff to get housing support is under 70 million won, so the focus of assistance targets not newlyweds but the lower-income class."

The share of childcare allowances and infant care support, two programs deemed effective in directly raising the birth rate, was relatively small. Last year, the "family budget" accounted for 1.56% of GDP, substantially lower than the OECD average of 2.29%.

Write to Kyung-Mok Noh at autonomy@hankyung.com
#government budget #low birth rate #child care #OECD #average

High- and low-income S.Koreans alike reluctant to have babies: Survey

High- and low-income S.Koreans alike reluctant to have babies: Survey

A newborn baby care center in a Korean hospital (Courtesy of Yonhap) South Koreans in low- and high-income brackets alike are unwilling to have children due to either insufficient time or money, found a recent survey of people aged 25 to 45 in Asia’s fourth-largest economy grappling with

South Korea’s births fall to record low in January

South Korea’s births fall to record low in January

In January, South Korea saw the biggest on-year decline rate in births since July 2022 South Korea’s births fell to a fresh low in January, while the number of deaths reached its record high, statistics data shows, signaling an accelerating population decline in the world's 12th largest e

South Korea's total fertility rate falls under 0.8 in 3rd quarter

South Korea's total fertility rate falls under 0.8 in 3rd quarter

A neonatal unit at a general hospital in Seoul South Korea's birth rate in the third quarter this year set another all-time low of under 0.8, and the national population consequently declined for the 35th straight month.According to a report on September population trends released by Statisti

S.Korea forecast to have world's oldest population by 2070

S.Korea forecast to have world's oldest population by 2070

Two senior citizens sit in Tapgol Park, a hot gathering spot for elderly people in Seoul (File Photo, Courtesy of Yonhap) South Korea is expected to become the world’s most elderly country with about half of its population aged 65 or older by 2070, the government forecasts, adding to conc
(* comment hide *}