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Seoul expands family aid with $4.9 billion Investment to combat falling birth rate

The city government of Seoul announced plans on Tuesday to allocate 6.7 trillion won (US$4.9 billion) over the next two years to support families and encourage childbirth.

The move is part of an effort to counter South Korea’s low birth rate. This new expansion builds on a previous project introduced in February, which focused on reducing financial barriers and providing comprehensive support for caregivers.

According to local media, the newly unveiled phase adds 35 initiatives to the program, bringing the total number of policies to 87. 



Key measures include a housing subsidy starting in January 2025 for non-homeowning families with newborns, which will provide up to 720,000 won over two years. 

The city anticipates initially supporting 1,380 families, with plans to extend this to 4,140 families by 2026.

Newlyweds will see an increase in the loan limit under Seoul’s rental deposit interest support program, raised from 200 million won to 300 million won. 

The interest rate support will also be extended to 10 years, and 1,000 long-term lease apartments will be offered this year, with 4,000 units planned annually starting in 2026.

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The program also includes incentives aimed at assisting small and medium enterprises (SMEs) when employees take parental leave. 

Beginning next year, SMEs will receive a monthly subsidy of 200,000 won for six months when hiring replacement staff, and employees covering for colleagues on parental leave will receive a 100,000 won monthly allowance for up to a year. 

Seoul will also support freelancers and self-employed individuals, providing a one-time maternity allowance of 900,000 won for self-employed pregnant women and an 800,000 won paternity allowance for freelancers with pregnant spouses. 

Newlyweds with income below the median level will be eligible for up to 1 million won in assistance for wedding and home setup expenses starting next year.

To provide accessible family spaces, the city plans to open 400 more Seoul Kids Cafes by 2026 and will expand its early-morning childcare program to all 25 districts, accommodating working parents who need to drop off children before school hours.

South Korea has the world’s lowest fertility rate, referring to the average number of children a woman is expected to have during her reproductive years. 

Statistics Korea reported a rate of 0.78 for 2022, equating to 78 babies for every 100 women. This figure fell to 0.72 in 2023, with projections suggesting a further decline to 0.68 in 2024. 

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