Chungnam Surpasses 500 Billion Won in Childcare Budget... Focus on Reducing Parents' Burden and More

[Asia Economy (Naepo) Reporter Jeong Il-woong] The budget scale for childcare projects managed by Chungnam Province has exceeded 500 billion won for the first time in history. The budget will be executed focusing on narrowing the gap between types such as national/public and private daycare centers and reducing the childcare burden on parents.

The province announced on the 28th that it will allocate and execute a total of 511.1 billion won for 43 childcare projects this year. The childcare project budget increased to 457.2 billion won in 2018 and 495.9 billion won in 2019, surpassing 500 billion won for the first time this year.

The related budget will mainly be invested in four new projects: ▲support for daycare center differential childcare fees (full support for the standard childcare cost for 5-year-olds) ▲support for personnel expenses for teachers in support facility preschool classes ▲support for improving the educational environment of public-type daycare centers ▲support for daycare center electronic attendance systems, as well as existing major projects such as ▲support for daycare helpers ▲support for daycare staff work allowances ▲support for infant and toddler childcare fees ▲support for home childcare allowances ▲support for assistant teachers.

Among these, the full support for the standard childcare cost for 5-year-olds is a system first implemented nationwide by Chungnam, aimed at reducing the gap between types of daycare centers such as national/public and private, and alleviating the childcare burden on parents.

This project involves the province supporting the full amount of the standard childcare cost, which is the appropriate cost required for childcare of 5-year-old children attending private and home daycare centers.

For example, the government-set standard childcare cost for 5-year-olds this year is 396,500 won, of which the government supports 240,000 won. Additionally, private and home daycare centers receive 41,780 won as Nuri Curriculum operating expenses from the government (based on daycare center revenue). Based on the standard childcare cost, a difference of 114,720 won arises, which the province fully supports. The budget estimated for the province’s full support of this difference is 20.74 billion won.

Also, the province supports personnel expenses for preschool teachers in government-supported daycare centers, with 50% additional burden for 5-year-old classes and 30% for 3-4-year-old classes. This project was also first introduced nationwide by Chungnam, with an expected budget of 7.874 billion won.

In addition, 531 million won will be invested in the public-type daycare center educational environment improvement project. This year, the province decided to reduce the special activity fee within the necessary expense collection limit to 60,000 won per month, down by 30,000 won, and freeze other items to reduce the childcare cost burden on parents.

Lee Jeong-gu, Director of the Low Birthrate Health and Welfare Office of the province, said, “Chungnam is promoting pioneering childcare policies based on the principle that the government bears the necessary childcare costs while parents bear expenses according to user choice. Based on this, we will focus on improving childcare conditions from age 5 and gradually building a childcare ecosystem.”