Current State of South Korea’s Birth Policy
Over the past 15 years (2006–2020), the South Korean government has allocated
a whopping KRW 280 trillion to combat low birth rates,
aiming to resolve the problem of declining birth rates.
Despite this considerable financial investment, as of 2022, the total fertility rate is only 0.78,
half of the Organisation for Economic Co-operation and Development (OECD) average of 1.59,
and has consistently ranked at the bottom for the past decade.
Incheon City, the third-lowest in birth rate after Seoul and Busan, has seen a steady decline since 2013,
from 1.2 births per woman to a mere 0.75 births per woman in the past year.
It is anticipated that in 2023, the total fertility rate in Incheon will further drop to 0.6 births per woman.
Despite substantial government funding,
these policies have failed to significantly improve birth rates, casting doubts on their effectiveness.
Bold and Innovative Measures in Incheon: “100 Million+ i dream”
Recognizing the severity of the low birth rate crisis,
Incheon City has launched a bold and innovative local policy known as “100 Million+ i dream.”
The “100 Million+ i dream” initiative grants KRW 100 million to every child born in Incheon,
aiming to address national policy gaps by providing comprehensive support from pregnancy to 18 years of age.
This includes KRW 72.5 million from a combination of parental wages and child allowances,
along with an additional KRW 28.7 million from the Incheon Child (i) Dream Allowance.
This ensures every child born in Incheon receives KRW 100 million in support,
with additional support of up to KRW 340 million tailored to individual circumstances and qualifications.
The newly established first project is the “Angel Support Fund (1040),”
a new program offering a “First Meeting Voucher” worth KRW 2 million
and monthly support of KRW 100,000 from ages one to seven, totaling KRW 10.4 million.
This is designed to alleviate the financial burden of raising young children.
The next policy, “Incheon Child (i) Dream Allowance,” extends the monthly child allowance of KRW 100,000
from birth to 7 years, continuing from 8 to 18 years.
Starting with children born in 2016 (who will turn 8 next year),
they will receive monthly support of KRW 50,000,
progressively increasing so that children born in 2024 will receive KRW 150,000 monthly.
Meanwhile, the “Pregnant Women’s Transportation Fee” offers a subsidy of KRW 500,000
to facilitate the movement of pregnant women,
recognized as a vulnerable group in terms of transportation, to ensure safe childbirth.
Additional tailored support based on individual situations and conditions includes assistance
for couples struggling with infertility, meal expenses, youth housing stability funds,
and comfortable postnatal care, with maximum support of up to KRW 340 million.
Demand for Major Shift in South Korea’s Birth Policy
Immediate action is crucial, as the failure to increase birth rates could result in
an economic growth rate of below 0% by 2025.
If the current trend persists, shortages in the workforce, military personnel,
and school-age population may lead to a collapse of the South Korean societal system.
The population crisis poses a significant threat to the very foundations of our society,
yet our response remains inadequate.
A fundamental change in national policy is now imperative.
I strongly urge a transformation of South Korea’s birth policy.
First, it is proposed to consolidate the functions dispersed across various ministries into a single office,
establishing a “Population Policy Chief” within the Presidential Office
and creating a dedicated department under the Prime Minister’s Office
to oversee population policies, including low birth rates.
Second, transforming the current sporadic and “department store–like” subsidy system
into a more concentrated and effective structure is suggested.
This would involve restructuring the system to focus on key areas and transitioning
to an “Integrated Birth Support Fund” model
to boost policy effectiveness and public perception.
Third and last, to ensure the continuous and smooth implementation of birth policies,
a part of the statutory rate of local education finance grants is proposed to be used
as a source of funding to establish a “Birth Grant System” and a “Low Birth Special Fund.”
Novel National Strategies for Massive Population Influx through Immigrants and Overseas Koreans
As countries worldwide adopt immigration policies to address population decline,
Incheon City is taking steps to improve living conditions for immigrants.
Initiatives such as attracting the Overseas Koreans Office
and developing Songdo American Town and Global Korean Cultural Town
aim to promote stable settlement for foreign residents.
Recognizing that local government roles may be limited in handling large-scale population influxes,
we propose the formulation of comprehensive national measures to address this issue.
Incheon City: Committed to Lead in Population Policy
We strongly advocate for expanding and transforming Incheon’s proactive low birth rate measures
into national birth encouragement policies and comprehensive national strategies for addressing low birth rates.
Ultimately, we will continue exploring consumer-centric policies that improve work-life balance,
expand infrastructure to address care gaps, tackle employment and housing issues,
and change negative perceptions among the youth regarding marriage, childbirth, and parenting.
