[Changes in the New Year] Parents of Children Aged 0-1 to Receive 350,000 to 700,000 Won

Introduction of 'Man (滿) Age' in Judicial and Administrative Fields
Sergeant Monthly Maximum 1.3 Million Won
Minimum Wage 9,620 Won per Hour

[Asia Economy Sejong=Reporter Kim Hyewon] Starting January 1 next year, households raising children aged 0 to 1 will receive a 'parental allowance' of 350,000 to 700,000 KRW per month. Military personnel salaries will also increase, with sergeants receiving up to 1.3 million KRW per month. The minimum wage will rise to 9,620 KRW per hour.

From mid-next year, the 'full age' system will be fully implemented in private law relations and administrative fields, and food products will display expiration dates based on consumption periods instead of the existing shelf life.

The reduction rate of the gasoline fuel tax will decrease from the current 37% to 25%, potentially increasing the price by 99 KRW per liter. The delivery price linkage system, which reflects raw material price increases in delivery payments, will be implemented around October.

According to government ministries on the 30th, various systems, procedures, and regulations will change across different sectors next year.

First, notable changes reflect President Yoon Seok-yeol’s campaign promises. Parents of children aged 0 will receive 700,000 KRW per month, and those with 1-year-old children will receive 350,000 KRW per month. This aligns with President Yoon’s pledge to provide parents with a total of 1 million KRW per month for one year. The government plans to expand the parental allowance to 1 million KRW for 0-year-olds and 500,000 KRW for 1-year-olds starting in 2024.

Military personnel salaries will increase to 1 million KRW for sergeants, 800,000 KRW for corporals, 680,000 KRW for privates first class, and 600,000 KRW for privates. The government support for the Tomorrow Preparation Savings received upon discharge will also rise to 300,000 KRW, allowing sergeants to receive up to 1.3 million KRW monthly. This is also part of President Yoon’s campaign promises. Compensation for reservists participating in mobilization training will increase to 82,000 KRW.

In June, the Youth Leap Account will be launched, which, after five years of contributions, allows recipients to receive about 50 million KRW including government contributions at maturity. This is one of President Yoon’s key youth pledges and a policy financial product designed to help young people build assets. Eligible applicants are youths aged 19 to 34 with a personal income of 60 million KRW or less and household income below 180% of the median income.

As President Yoon mentioned, following amendments to the Framework Act on Administrative Procedures and the Civil Act, from June 28 next year, the age calculation method in judicial and administrative fields will be unified to the full age system. Unless otherwise specified, ages indicated in laws, contracts, or official documents will be interpreted as full age.

The minimum wage will rise to 9,620 KRW per hour, which amounts to 2,010,580 KRW per month based on a 40-hour workweek.

The maximum livelihood benefit for a four-person household will increase from 1.54 million KRW this year to 1.62 million KRW next year. The earned income tax credit for dual-income households will rise from 3 million KRW to 3.3 million KRW, and the child tax credit per child will increase from 700,000 KRW to 800,000 KRW. The energy voucher support amount will increase by 68,000 KRW from 127,000 KRW this year to 195,000 KRW.

The gasoline fuel tax reduction rate will be reduced from the current 37% to 25%, likely causing gasoline prices to rise by 99 KRW per liter. The 30% reduction in the individual consumption tax for passenger cars (tax rate from 5% to 3.5%) will be extended for six months until the end of June next year. The benefit limit is 1 million KRW.

The amendment to the Act on the Promotion of Mutual Growth between Large Enterprises and Small and Medium Enterprises, which includes reflecting raw material price increases in delivery prices, will be promulgated on January 3 and take effect on October 4. Provisions regarding designation of excellent companies for delivery price linkage and the support headquarters for expanding the linkage system will be implemented earlier on July 4, three months prior.

Food products will display consumption periods, which are longer than the existing shelf life. The consumption period indicates the date until which the product is considered safe to consume if storage conditions are met. The 'Strategic Crop Direct Payment System' will be implemented to provide direct payments to farms cultivating strategic crops such as powdered rice, wheat, and barley in rice paddies. This system expands and reorganizes the existing rice paddy utilization direct payment system and is introduced to ensure food security and stabilize rice supply.