Analysis from the National Assembly Budget Policy Office calls for central government intervention to reform South Korea’s child allowance system with tiered payments that factor in the number of children and their ages. This approach aims to better support families amid population decline.
South Korea’s Current Child Allowance Framework
The system initially targeted nearly 90% of children aged 0-5 without income or asset restrictions. Since 2019, coverage has expanded gradually to children under 8 years old. Lawmakers plan to extend eligibility to under 13 by 2030, adding one year at a time. Monthly supplements of 50,000 to 200,000 won assist families in non-capital regions and areas facing population shrinkage.
These measures focus heavily on younger children, but officials note the need for broader adjustments to address diverse family dynamics.
Lessons from International Child Benefit Models
Uruguay’s Universal Approach
Uruguay delivers child allowances to 2.166 million children, backed by a budget of roughly 2.6 trillion won based on 2025 estimates.
France’s Family Size Incentives
France escalates payments for larger families, providing about 285,000 won monthly for third and subsequent children—twice the 143,000 won for first and second children under age 3. Benefits adjust according to income and household child count.
Sweden’s Scaled Multi-Child Support
Sweden grants allowances for children under 16, with extra multi-child premiums for families with two or more kids. Additions range from 150 Swedish kronor (around 22,000 won) to 4,240 kronor (about 616,000 won) based on the number of children.
Such graduated structures boost aid for bigger households, where allowances rise with family size.
Key Recommendations for Reform
Officials urge incorporating child count and age into South Korea’s design to ease uneven child-rearing costs. The Budget Policy Office emphasized, “Household burdens vary significantly with family size and child ages. The central government should examine tiered allowance structures reflecting these factors to counter accelerating population decline.”
