Parental subsidies to be increased to one million won

The ruling People Power Party has agreed on a budget proposal that offers parental subsidies. Under this plan, parents with a child under one year old would receive 1,000,000 won, while parents with a child under two years old would receive 700,000 won. Additionally, both the government and the ruling party have agreed to allocate funds for various significant projects, including the construction of the KTX train at the Incheon terminal station and the early operation of the GTX-A train. This underscores the government’s commitment to maintaining fiscal stability while boosting social overhead capital (SOC) budgets. This move reflects the ruling party’s efforts to achieve tangible outcomes before the 2024 general election.

The People Power Party and the government held the 2024 budget meeting, where they reached a preliminary budget agreement. Yoon Jae-ok, the floor leader of the People Power Party, mentioned that they have incorporated budgets for projects directly impacting people’s lives while ensuring fiscal responsibility. He assured that both the government and the ruling party will develop strategies to enhance the economic well-being of Korea's working and middle-class citizens.

The preliminary budget plan encompasses infant and toddler care subsidies in response to Korean society's unprecedentedly low birth rates. The initial parental subsidy of 700,000 won for parents with children under one year old will be raised to 1,000,000 won in 2024. Likewise, parents with children under two years old will see an increase from 350,000 won to 500,000 won. Families with three or more children will receive a voucher, which will also be subject to an increase from the current value of 2 million won for newborns.


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