[2023 National Audit] One in Four Foreigners Receiving Child Allowance Is Vietnamese

China 18%, Korean Chinese 15%

Over the past five years, the number of foreigners receiving child allowances has increased more than fourfold.

According to data received on the 12th from the Ministry of Health and Welfare by Kim Sang-hoon, a member of the National Assembly's Planning and Finance Committee from the People Power Party, the number of foreign parents receiving child allowances rose from 30,799 in 2018 to 131,029 last year, an increase of more than 4.2 times over five years.

The amount paid also increased by more than 10.41 billion KRW, from 3.288 billion KRW in 2018 to 13.07 billion KRW last year. Child benefits can be received if the child holds Korean nationality, even if both parents are foreigners.

As of the end of last year, foreigners receiving child allowances were mainly distributed in the Seoul metropolitan area, with 37,017 in Gyeonggi-do, 20,445 in Seoul, and 10,326 in Incheon. In the provinces, the numbers were highest in Gyeongnam (8,459), Chungnam (7,233), and Busan (6,573), in that order.

The nationalities of foreign parents receiving child allowances were led by Vietnam at 25%, followed by China at 18%, Korean-Chinese at 15%, the Philippines at 8%, and the United States at 5%. For Vietnamese, Chinese, and Korean-Chinese, child allowance, childcare allowance, and parental benefits all ranked within the top three.

In addition to child allowances, the number of foreigners receiving childcare allowances and parental benefits (formerly infant allowances) has also continued. The number of childcare allowance recipients steadily remained around 30,000, from 32,429 in 2018 (with 5.44 billion KRW paid) to 30,059 in 2021 (with 4.92 billion KRW), but the introduction of infant allowances caused a split and decrease in recipients.

Meanwhile, with the reform of infant allowances into parental benefits this year, the number of foreign recipients surged. Last year, there were 6,700 recipients (2.32 billion KRW), but in just six months this year, the number rose to 8,104 (5.47 billion KRW), surpassing last year's figures. Since the criteria for foreigners receiving childcare allowances and parental benefits are similar to those for child allowances, the scale of foreign recipients of childcare-related cash benefits is expected to increase further.

Assemblyman Kim stated, "Countries that provide child allowances to foreign couples or foreign children are limited to those with massive welfare budgets, such as Sweden and Finland," adding, "As we pass the fifth year since the introduction of child allowances, it is time to discuss the sustainability of the system."