The Seoul city government said it was expanding an existing childbirth encouragement project launched in February as part of efforts to increase low birth rates. - Photo: AFP
SEOUL: The Seoul city government will spend 6.7 trillion won (US$4.8 billion) from 2025 to 2026 to financially help residents raise children, city officials said on Tuesday (Oct 29).
The city government said it was expanding an existing childbirth encouragement project launched in February as part of efforts to increase the country’s low birth rate.
The earlier version of the project took a comprehensive approach to supporting caregivers by providing financial assistance for infertility treatments across all income levels and reducing barriers to social benefits for families with multiple children. With the second phase announced on Oct 29, the city government said it would add 35 new initiatives, bringing the total to 87 policies.
A key component of the initiative is aimed at supporting newlyweds and prospective parents who do not yet have their own homes. Starting in January, the city will provide non-home owner families with newborns a housing subsidy totalling 720,000 won over two years, or 30,000 won per month.
This subsidy is designed to ease financial burdens that might hinder families from having children, according to the city government. The programme will initially assist 1,380 families in the first year, with plans to expand support to 4,140 families beginning in 2026.
The city will also increase the loan limit for newlyweds under the rental deposit interest support programme from 200 million won to 300 million won and enhance the interest rate support for 10 years.
Additionally, the city will offer long-term lease apartments to newlyweds without homes, including units in Dunchon-dong, Gangdong-gu. In 2024, 1,000 units will be available, with plans to supply 4,000 units annually starting in 2026.
The city plans to offer benefits, starting in 2025, such as providing a monthly subsidy of 200,000 won for six months to small and medium-sized enterprises that hire replacement workers when employees take parental leave, thereby making it easier for these businesses to find temporary staff.
Additionally, a monthly allowance of 100,000 won will be given to employees who cover for their colleagues on parental leave for up to a year. The move is designed to facilitate a work environment that is more supportive of employees who want to take leave.
Addressing the income reduction challenge during maternity leave, the city plans to pay up to 900,000 won to compensate for lost salaries during the last 30 days of the 90-day statutory leave, which employers currently are not obliged to pay.
Additionally, starting in 2025, the city will support maternity and paternity leave for solo entrepreneurs and freelancers, who typically do not have access to such leave because they work independently.
Pregnant women who are self-employed or freelancers will receive a one-time maternity allowance of 900,000 won. Meanwhile, self-employed people and freelancers with pregnant spouses will receive a one-time paternity leave allowance of 800,000 won.
Starting in 2025, newlywed couples burdened by wedding preparation costs will receive up to one million won to help with wedding and home set-up expenses. This support is available for couples registering their marriage after Jan 1 who earn less than the median income, with plans to assist more than 20,000 couples in 2025.
Furthermore, the number of Seoul Kids Cafe indoor play spaces – operated by the city government – will be increased by 400 locations by 2026 to provide safe and fun play areas for children. Additionally, the city will expand its special early-morning childcare centres across the capital, where working parents can drop off their children before school hours, to all 25 districts. - The Korea Herald/ANN
