Couple Using Vouchers for Luxury Goods and Electronics
Top Usage Locations Include Retail Stores Selling Baby Products
"I bought a luxury handbag using the 'First Meeting Voucher.' I tried making a payment just in case, and it actually went through." (Naver blog post) "I heard the 'First Meeting Voucher' can be used at department stores. Is it possible to buy luxury goods too? I want to use it for myself." (Internet cafe post)
These are posts uploaded by couples who are using the 'First Meeting Voucher,' introduced as part of the low birthrate policy, to purchase luxury goods or electronic devices that are usually difficult to buy. The government, which provides the subsidy, allows the voucher to be used in all industries except certain sectors such as entertainment and gambling, leading some to use the voucher for large purchases beyond just childcare products.
The First Meeting Voucher is a voucher introduced by the Ministry of Health and Welfare in December 2020 as part of the fourth Basic Plan for Low Birthrate and Aging Society, focusing on intensive investment in infancy. It has been provided since last year to newborn children, and children who receive a resident registration number after birth registration are given the same 2 million KRW voucher through the National Happiness Card regardless of birth order. For twins, it is 4 million KRW, and for triplets, 6 million KRW. The First Meeting Voucher can be used for one year from the child's birth date. The government plans to increase the support amount by 1 million KRW to 3 million KRW for second children starting next year and to raise the budget from 319.3 billion KRW this year to 380.3 billion KRW next year.
According to the Ministry of Health and Welfare, the cumulative number of applicants from the policy's implementation last year until May this year is 340,000. The top voucher usage locations were distribution stores at 39.1%, postpartum care centers at 16.6%, and hospitals and pharmacies at 14.2%. The purchase list at distribution stores includes not only childcare products but also other items. To ensure the voucher is used for its intended purpose, the government has prohibited use in certain sectors such as entertainment, gambling, leisure industries, gift certificate purchases, and duty-free shops, but allowed free use in other sectors considering convenience to reduce the burden of early childcare.
As a result, some use the voucher to supplement purchases of luxury goods or electronic devices that are usually hard to buy. A woman in her 30s said, "I bought a luxury handbag with the remaining voucher after buying childbirth supplies," adding, "I didn’t know it was possible to use it at luxury brand stores, but the payment went through." A review was posted on an internet blog about buying an iPad using the voucher. On a childcare information-sharing cafe, a post asked whether luxury goods can be purchased with the First Meeting Voucher. Among comments like "It's ambiguous" and "I’m not sure," there was one saying, "I know because I bought it myself, it’s possible." There were about 30 similar inquiry posts on this cafe.
There are also responses that it is not a problem since the government allows freedom in voucher use. On a childcare information internet cafe, a post said, "Since the voucher can be used at department stores, I use it and buy baby products like strollers or diapers with other money. I don’t see what’s wrong with that." Kim (34, female) also said, "I think it’s free to use the voucher wherever you want. If the problem is that people reveal it on SNS, then that’s the issue."
Yu Haemi, senior research fellow at the Childcare Policy Research Institute, said, "Vouchers are meant to be used for designated items and purposes, but if too many restrictions are imposed, the government would inevitably have concerns considering parental satisfaction. It is true that expenses increase after childbirth, and except for a few excluded categories like entertainment, it is appropriate to allow parents to use it according to their circumstances." However, she added, "If data shows that spending that does not align with the intended purpose becomes excessively large, then alternatives will be needed."
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