Seoul city budgets $4.8B through 2026 on initiatives to stimulate birthrate

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Seoul city budgets $4.8B through 2026 on initiatives to stimulate birthrate

Published: 29 Oct. 2024, 18:53 Updated: 29 Oct. 2024, 18:54

CHO JUNG-WOO
[email protected]

Audio report: written by reporters, read by AI

A child places her ear on her mother's pregnant belly, as the mother waits for her appointment at a hospital in Daegu on Oct. 10. [NEWS1]

The Seoul Metropolitan Government on Tuesday announced that it would spend 6.7 trillion won ($4.8 billion) over the next two years to boost the city’s birthrate.

This is nearly double the previous two-year budget of 3.6 trillion won, which covered fees for subfertility treatments like in vitro fertilization (IVF) and provided financial support for future mothers wishing to freeze their eggs.

The increased investment comes as recent projects have shown positive results, with the city posting a rise in newborns in recent months.

From April to August, the number of newborns in Seoul rose by 6.6 percent compared to the same period last year. This marks the first time in 12 years that births have risen for five consecutive months, according to the city government.

Marriages also increased by 23.5 percent over the same period.

Seoul Mayor Oh Se-hoon speaks at a press conference at City Hall in central Seoul on Tuesday, announcing the city's measures to boost the low birthrate. [NEWS1]

Speaking at a press conference at City Hall in central Seoul on Tuesday, Seoul Mayor Oh Se-hoon said that the expanded and newly introduced measures would help couples “decide to have children more easily" and "reduce the burden of child care.”

Since 2023, the city government has been running 52 projects aimed at addressing the low birthrate, which will now be expanded to 87 over the next two years.

Seoul’s birthrate dropped to 0.55 in the fourth quarter of last year, the lowest among cities in the country. The Seoul city government believes the city’s low birthrate is due to several factors, including young people’s views on marriage and parenting, career breaks for child care and high housing costs.

More public housing will be made available for long-term rent to couples with children who do not own a home. A total of 1,000 units will be supplied this year, 3,500 next year and 4,000 annually starting in 2026.

Beginning in January, non-homeowning households in Seoul with newborns will receive a monthly subsidy of 300,000 won for two years, totaling 7.2 million won in housing assistance. The support will be provided to 1,380 households next year and 4,140 in 2026.

The city plans to incentivize small- and medium-sized companies to encourage employees to take parental leave. This includes offering a monthly payment of 200,000 won for six months to fund substitute workers covering parental leaves.

A child takes a photo of his teacher and friends at a festival held for children at Seomjingang Train Village in Gokseong County, South Jeolla, on Thursday. [YONHAP]

Starting next year, freelancers and self-employed residents will be eligible for parental leave benefits, with 900,000 won provided in paid leave.

Self-employed and freelance workers whose spouses give birth will also receive an additional 800,000 won in paid leave, the city government said.

Other new measures include an online shopping mall for child care products at affordable prices, up to 50 percent off retail. The store is expected to open in March next year.

To alleviate the financial burden of weddings, the city will offer up to 1 million won to newlyweds registering their marriage from next year. Some 20,000 households earning below 150 percent of the median income, or 5.5 million won per month for a two-person household, will qualify for the scheme.

Additionally, city-run "kids cafes," or indoor playgrounds, will increase from the current 98 locations to around 400 by 2026. The number of hourly daycares will be expanded from the current nine to 25, ensuring at least one such facility in each district.

BY CHO JUNG-WOO [[email protected]]