Oh Se-hoon: "Increase in Live Births Hard Won, Will Be the First Mover in Solving Low Birthrate" (Comprehensive)

Comprehensive Low Birthrate Support Plan Investing 6.7 Trillion Won Over 2 Years
40 Trillion Won for Housing and Care... Managing Work-Life Balance
Support for SMEs' 'Parental Leave Replacement Workers'... Salary Compensation
Discount Support Planned for Childcare Essentials Following Sdeume

"Increase in newborns barely saved... We will change the factors preventing childbirth to be more friendly."

Seoul Mayor Oh Se-hoon announced a low birthrate overcoming support plan investing a total of 6.7 trillion KRW over two years. This comprehensive plan focuses 4 trillion KRW on proven-effective housing supply for newlyweds and childcare, also supporting newlyweds' marriage preparation costs. Mayor Oh’s judgment is that the low birthrate issue cannot be solved by just one or two measures, and Seoul City intends to take the lead as a 'first mover' in resolving the low birthrate problem.

On the 29th, Mayor Oh personally unveiled the 'Birth Support Seoul Project,' which is divided into three areas?care & housing, work-life balance & child-rearing friendliness, and meeting & childbirth?with 87 detailed projects. This is to provide comprehensive support not only for caregivers but also for prospective caregivers such as youth, newlyweds, and infertile couples, addressing fundamental issues including childbirth, childcare, care, housing, and work-life balance.

Seoul Mayor Oh Se-hoon is announcing the 'Birth Support Seoul Project' at Seoul City Hall on the 29th.
[Photo by Seoul City]

Seoul City policies like 'Infertility Treatment Cost Support' and 'Introduction of Childcare Allowance' now spreading nationwide

The reason Seoul City is investing the enormous budget of 6.7 trillion KRW is reflected in the success of the 'Mom and Dad Happiness Project' announced by Mayor Oh in 2022. Policy packages Seoul City promoted to overcome the low birthrate crisis?such as infertility treatment cost support, grandparental childcare allowance, and Seoul-style kids cafes?have drawn high satisfaction averaging 96.4% over the past two years.

The number of beneficiaries so far reaches 2.83 million annually. A total of 2,700 spaces, including Seoul-style kids cafes, have been reborn as spaces for caregivers. Some policies have been adopted by the government and other local governments, spreading nationwide and becoming new standards for low birthrate policies. For example, the 'Infertility Treatment Cost Support,' which benefits all infertile couples nationwide, began when Seoul City first abolished income criteria and frequency limits last year. The 'Seoul-style Childcare Allowance' for grandparents caring for grandchildren is being expanded to other cities and provinces such as Gyeonggi-do, Busan Metropolitan City, and Gyeongsangnam-do. Relaxation of multi-child criteria and support measures for one-person self-employed and freelancers have also been largely reflected in the government’s low birthrate policies.

Participation from companies and institutions has also been attracted. The Korea Non-Life Insurance Association Social Contribution Council has supported Seoul City’s infertility policies with 4 billion KRW over four years, and KB Financial Group is jointly promoting the 'Small Business Birth and Childcare Support Triple Package' with Seoul City.

Seoul City is particularly focusing on the changing perceptions of citizens. According to a Seoul Institute survey, caregivers’ perception that 'Seoul is a child-friendly city good for giving birth and raising children' (3.56 out of 5) improved compared to 2022 (3.30). The percentage of respondents intending to have children also increased for both childless couples (68.5%) and couples with children (30.3%) compared to 2023 (56.5%, 27.3%).

Support expanded from 52 to 87 areas... including small businesses and one-person self-employed

The announced measures are also an expanded version of the 'Mom and Dad Happiness Project' announced by Mayor Oh in 2022. The support scope has expanded noticeably from 52 projects in two areas (birth support and childcare support) to 87 projects in three areas (care & housing, child-rearing friendliness & work-life balance, meeting & childbirth). The budget allocated is nearly double the 3.6 trillion KRW invested over the past two years, reaching 6.7 trillion KRW.

First, Seoul will implement the 'Seoul-style low birthrate housing measures' tailored to newlyweds and caregivers. This is based on analysis that stable housing positively influences the decision to give birth. Starting with the first long-term lease housing II 'Mirinae House' at Olympic Park Foreon (Dunchon Jugong reconstruction complex), 1,000 units will be supplied this year for newlywed households composed of non-homeowners. Seoul City plans to supply 4,000 units annually from 2026.

From January next year, housing cost support totaling 7.2 million KRW over two years (300,000 KRW per month per household) will begin for non-homeowner households with newborns. This aims to minimize cases of leaving Seoul or giving up childbirth due to housing costs. Next year, 1,380 households will be supported, expanding to 4,140 households by 2026. Additionally, the loan limit for newlywed rental deposit interest support will be raised from 200 million KRW to 300 million KRW. The support interest rate will also increase from a maximum of 3.6% per annum to 4.5% per annum, with support for up to 10 years.

Support measures for work-life balance were also announced. To assist employees of small and medium enterprises (SMEs) who find it harder to utilize work-family balance systems compared to large corporations, the 'SME Work-Life Balance Point System' will be expanded. This system provides incentives to SMEs that independently implement childbirth and childcare encouragement and work-life balance systems.

Starting next year, one-person self-employed and freelancers, who do not even have the concept of maternity leave because they work alone, will be the first nationwide to receive childbirth and leave pay support when they or their spouses give birth. Pregnant one-person self-employed and freelancers will receive childbirth pay of 900,000 KRW, and those with pregnant spouses will receive spouse childbirth leave pay of 800,000 KRW.

1 million KRW for studio, dress, makeup, and one kids cafe per neighborhood

New policies such as 'Newlywed Marriage Household Expense Support' and 'Operation of Half-Price Childcare Product Discount Mall' are also being promoted. To ease the heavy burden of marriage preparation costs for newlyweds, up to 1 million KRW will be supported from next year for expenses related to studio, dress, makeup (Sdeume), and household setup. Eligible are newlyweds who register their marriage within one year after January 1, 2025, with household income below 150% of the median income, and more than 20,000 households will be supported next year.

Considering that childcare cost burden is a major factor preventing childbirth and that prices of essential childcare items such as diapers and formula have surged, increasing household burdens, the 'Birth Support Mall' will open in March next year, where childcare products can be purchased at up to half price. Exclusive coupons for use at the 'Birth Support Mall' are also being prepared.

The 'Seoul-style Kids Cafe,' popular among both caregivers and children, will be established with one location per neighborhood, totaling 400 locations by 2026. Seoul City will operate 'pop-up Seoul-style Kids Cafes' at festivals and events it hosts to improve convenience for visitors with children. To address care gaps for infants and elementary school children, the 'Seoul-style Hourly Specialized Daycare Centers,' where children can be cared for by the hour, and the 'Seoul-style Morning Care Centers' that look after elementary school children before school and escort them to school, will be expanded to all 25 autonomous districts.

Mayor Oh said, "Through Birth Support Seoul Project Season 2, we will make the decision to have children easier, lighten the burden of raising children, and upgrade to a more thorough and fundamental low birthrate policy." He added, "Since the low birthrate problem is difficult to reverse with just one or two measures, we will continue to implement various policies with balance as a first mover in solving the low birthrate issue."