[The Editors' Verdict] Evangelists Leading the Way to Overcome Low Birthrate

Incheon Leads Population Growth with Bold Policies:
‘I-Plus 100 Million Dream’ and Cheonwon Housing
Booyoung Group’s 100 Million Won Childbirth Incentive
Serving as a Catalyst for Birth Promotion
Hopes for More ‘Evangelists’ to Pave the Way for Solutions

Kyung-ho Lee, Head of Issue & Trend Team

As Incheon City began accepting preliminary applications for 500 households for the ‘Cheonwon Housing’ program, 604 households applied on the first day, the 6th. Cheonwon Housing is an Incheon-style low birthrate measure that provides rental housing at a daily rent of 1,000 won (30,000 won per month) targeting newlywed couples without homes. Selection and move-in will take place within the first half of the year. The rental period for Cheonwon Housing is initially 2 years, with support up to a maximum of 6 years. Assuming the general housing cost is 1 million won per month for 6 years, the total cost would be 72 million won, but Cheonwon Housing costs only 2.16 million won. Simply put, one can save 70 million won over 6 years.

Incheon’s ‘I-Plus 100 Million Dream’ program provides a total of 100 million won support until the child turns 18 for children born in Incheon. In addition to existing support funds of 72 million won such as parental allowance, child allowance, childcare fees, and education expenses, it provides an additional 28 million won including 8.4 million won in angel support funds and 19.8 million won in child dream allowances. Other local governments have also started to introduce similar measures to Incheon.

The reason Incheon introduced such a groundbreaking measure is to continue the trend of population growth. In the past, large-scale industrial complexes such as Namdong Industrial Complex drove population growth, and recently, the development of Incheon Free Economic Zone areas such as Songdo, Cheongna, and Yeongjong International City has each led population increases. As of January, the registered population of Incheon City was 3,027,854, an increase of 4,205 from the previous month. It ranks first in population growth among the 17 metropolitan cities and provinces nationwide. Last year, the number of births in Incheon was 15,242, an 11.6% increase from the previous year, far exceeding the national average of 3.6%, ranking first among the 17 metropolitan cities and provinces. Mayor Yoo Jeong-bok of Incheon stated, "Incheon will become the center for solving the national population problem."

Booyoung Group attracted attention with its unprecedented childbirth incentive. At the opening ceremonies last year and this year, the group paid about 10 billion won, 100 million won each, to 98 children born to employees between 2021 and 2024. Chairman Lee Joong-geun said at the opening ceremony, "I hope that we become the primer and that many companies voluntarily support childbirth, spreading like the national debt repayment movement and the gold collection campaign as a butterfly effect." As he wished, 28 children were born in Booyoung Group last year, an increase of 5 from the previous average of 23 per year over the past three years. The group’s public recruitment held last year for the first time in 7 years also saw more than a fivefold increase in applicants compared to previous recruitments.

Chairman Lee, who took office as president of the Korea Senior Citizens Association last year, has also paid attention to aging population measures by proposing raising the senior age limit system, home hospice care system, and establishing a population department. Following Booyoung, game company Krafton also introduced a childbirth incentive policy that provides a lump sum of 60 million won to employees who have children and then pays 5 million won annually for 8 years during their employment, totaling 100 million won. Vice Chairman Joo Hyung-hwan of the Low Birthrate and Aging Society Committee presented a plaque of appreciation to Chairman Lee on the 27th of last month, saying, "You have led the way for companies to open the path to solving the biggest problems in our society, low birthrate and aging."

According to Statistics Korea’s ‘2024 Population Trend Survey Birth and Death Statistics,’ the number of births last year (238,300) and the total fertility rate (0.75) rebounded for the first time in 9 years. The number of marriages (222,422) also surged by 14.9% compared to the previous year. The government cited efforts by companies, local governments, and various sectors in addition to government policy efforts as the background for the rebound in the total fertility rate. If places like Incheon and Booyoung served as the momentum and primer for reversing low birthrate, it is hoped that the second and third evangelists to emerge will become breakthroughs in overcoming low birthrate. Lee Kyung-ho Issue & Trend Team Leader