The city of Paju is drastically raising government payouts for newborns. (Image courtesy of Yonhap)
PAJU, Mar. 27 (Korea Bizwire) – In a bid to alleviate the financial burden on families and encourage more childbirths, the city of Paju is drastically raising government payouts for newborns, becoming one of the most generous municipalities in South Korea for birth incentives.
Paju, a satellite city of Seoul in Gyeonggi Province, announced on March 26 that it would increase birth grants from the current 100,000 won to 1 million won for the first child born to a family. Families will receive 2 million won for a second child and 3 million won for a third or higher-order newborn.
Lump-sum birth grants have become a common welfare policy adopted by local governments across South Korea to ease the economic pressures facing parents and create a more childbirth-friendly environment as the country grapples with a chronically low fertility rate.
Paju had gradually raised birth payouts over the past two decades before this latest sharp increase, from 300,000 won in 2006 to 800,000 won in 2012 for third or higher-order births. In 2021, it began paying smaller grants of 100,000 won for first children and 300,000 won for second children.
But Paju’s fertility rate has continued to plummet, dropping from 0.86 births per woman in 2022 to just 0.76 last year – far below the replacement level of 2.1 considered crucial for natural population replenishment. Concerns over intensifying nationwide demographic decline prompted the generous new birth incentives.
During mobile city hall meetings with residents earlier this year, Paju’s mayor also fielded repeated requests to further bolster birth grants as a way to encourage larger families.
The city is currently undergoing necessary procedures, including consultation with South Korea’s health ministry as required under the social security law, before formally amending its birth support ordinance to enable the higher payouts.
Beyond birth grants, Paju offers other pro-natal policies, including subsidies of up to 1.1 million won for fertility treatments, postpartum care benefits worth 500,000 won, and parental leave allowances of up to 1.2 million won annually during a child’s first two years.
M. H. Lee (mhlee@koreabizwire.com)
