Gyeonggi budget cuts halt postpartum subsidy, strain cities and public agencies

“We oppose the sudden end of Gyeonggi’s postpartum care subsidy! Don’t leave babies born from October through December 2026 without support.”

That was the plea from an expectant father, who voiced his concerns in a petition posted on Gyeonggi’s petition website on Wednesday.

“I am an expectant father who will meet my first child in November,” the petitioner wrote. “Gyeonggi’s 500,000 won [$370] postpartum care subsidy, which has been provided for years, will end on Sept. 30. Who suddenly cuts off welfare benefits just before the final quarter, instead of at the end of the year?”

The subsidy, introduced in 2019, provides families with 500,000 won in local currency for each newborn. Gyeonggi funded only nine months of the program in this year’s budget and did not provide additional funding in its supplementary budget, leaving babies born from October onward ineligible for the benefit.

The father added that many expectant parents planned their childbirth expenses based on Gyeonggi’s promise to provide support.

“At a time of high prices, 500,000 won in local government subsidies is valuable money that gives families some room to breathe,” the petitioner added. “Please continue providing the existing postpartum care subsidy to babies born through Dec. 31 this year or come up with some form of relief.”

The subsidy is among a number of welfare programs affected by Gyeonggi’s efforts to rein in spending as it declares a financial emergency. The province also cut 546.5 billion won from its supplementary budget.

The petition had garnered more than 13,000 signatures as of 11 a.m. Friday, meaning it has cleared the 10,000-signature threshold that requires the governor to issue an official response within 30 days.

Choo calls subsidy cuts ‘unavoidable’

Choo defended the decision to end the subsidy, calling it “an unavoidable choice” on Sunday.

“[The province's total] budget had originally been drawn up with funding for only nine months, meaning that if left unchanged, virtually all such programs would effectively end in September,” Choo wrote on Facebook. “When I took office, Gyeonggi had already issued local government bonds five times and drawn heavily on various funds. In other words, there was a three-month hole in the budget, but there was no money left to fill it.”

Choo said the limited funds were instead directed toward other essential welfare programs.

“We could not stop school meal programs or support for people with disabilities and other vulnerable groups,” Choo added. “So we tightened and cut spending again and again, and with the limited funds we were able to secure, we inevitably had to make choices among various programs.”

Choo said she accepted the provincial executive branch’s recommendation to prioritize programs including fertility treatment support, noting that other central government-funded programs provide similar postpartum support.

“Gyeonggi’s finances are now in a very concerning state,” Choo said. “As governor, I feel a heavy responsibility to restore fiscal stability and we are working on multiple fronts. I will make sure Gyeonggi regains its financial footing.”

Cities face growing financial burden

Local governments are also scrambling after Gyeonggi capped its share of financial support for cities and counties at 30 percent.

“Until now, our residents could receive postpartum care support worth 1 million won, including 500,000 won in local currency from Gyeonggi and 500,000 won in cash from the city,” an official from Hanam, a city in Gyeonggi, said. “With Gyeonggi’s funding ending, that support will be cut in half. With provincial support also restricted, local governments in poor financial condition may find it difficult to continue their postpartum care programs next year.”

Goyang, also in Gyeonggi, had planned to resume its youth basic income program that was suspended in 2025. The program provides payments in local currency to young adults. But the project has effectively been scrapped after Gyeonggi did not allocate funding.

Other programs tied to Gyeonggi funding, including universal menstrual product support for teenage girls, opportunity income for farmers and fishers and support for issuing local currency, are also reportedly at risk of suspension across the province.

“Gyeonggi recently cut its funding share for municipal programs to no more than 30 percent, citing financial difficulties, leaving cities including Seongnam, Hwaseong and Yongin to cover as much as 90 percent of the costs,” Seongnam Mayor Shin Sang-jin wrote on Facebook on Wednesday. “If cities and counties have to pay most of the bill even for Gyeonggi-led projects, what purpose does the provincial government serve?”

Gyeonggi's association of mayors and county governors submitted a proposal to Gov. Choo on Sept. 7, calling on Gyeonggi to reconsider across-the-board cuts to its funding share. It also asked the province to take into account the financial conditions of individual cities and counties as well as differences among programs when deciding funding caps.

Public institutions scramble to cover payroll

Public institutions under the Gyeonggi government are also facing financial strain. Personnel expenses for October through December were excluded from the original annual budget and were not added in either the first or second supplementary budgets.

About 380 employees at institutions including the Gyeonggi Content Agency, Gyeonggido Job Foundation and the Advanced Institute of Convergence Technology could go without pay as early as next month. The institutions plan to secure some payroll funds by adjusting operating expenses and project budgets.

Personnel costs totaling about 11 billion won for September through December at five hospitals under the Gyeonggi Provincial Medical Center — in Suwon, Uijeongbu, Paju, Anseong and Pocheon — were also left out of the second supplementary budget.

“Providing reliable public health care to people in our province starts with ensuring that doctors and staff at the Gyeonggi Provincial Medical Center have stable working conditions,” Cha Yu-mi, a proportional representative lawmaker from the Rebuilding Korea Party in the Gyeonggi Provincial Council, said.

Lawmakers in the provincial council from both the ruling and opposition parties have raised concerns over the sweeping cuts to livelihood-related programs.

The council’s standing committees have moved to restore budgets cut by Gyeonggi. The measures will undergo review by a special committee on budget and accounts through Thursday before a final vote at the fourth plenary session on Friday.

But even if the council approves the increased spending, Gyeonggi can refuse to consent to the increases, decline to execute the funds or request reconsideration.

“We respect the views of the Gyeonggi Provincial Council,” a Gyeonggi official said. “Once the special committee reaches its final decision, we will carefully review it.”

BY CHOI MO-RAN, JEONG HYE-JEONG [[email protected]]