The Korean government has earnestly taken steps to address the escalating population crisis, which has emerged as a significant social concern in the nation. More efforts will be made to bolster support for childbirth and the upbringing of infants and children, aimed at mitigating the population decline. Additionally, measures to bring foreign labor to Korea will be further broadened.
In the 2024 Economic Policy Direction announced on Jan. 4, the government said it will create and promote a social atmosphere friendly to marriage, childbirth and child-rearing. To this end, it declared that it will re-prioritize the budget and tax system based on an empirical analysis of existing low birthrate policy projects. The intention is to improve the effectiveness of measures to boost the nation’s birth rates, which have been criticized for not yielding positive tangible results, by shifting the paradigm.
From this year, the government will expand a voucher program, which provides a voucher of 2 million won to parents who give birth to their first children, so that parents can receive the voucher when they give birth to subsequent children. The amount of support will be 3 million won for additional children. The child tax credit for the second child will be increased to 200,000 won from 150,000 won. The parental benefit, which was first introduced in 2023, will rise from a maximum of 700,000 won per month to a maximum of 1 million won.
The deduction limit for gifted property for marriages and childbirth will be increased from 50 million won to 150 million won in order to promote the transfer of wealth by giving tax-free gifts to children who get married and give birth.
The government has also decided not to impose taxes on operating costs for workplace daycare centers and foster care subsidies. The number of households eligible for childcare services will be expanded from 85,000 to 110,000. The number of part-time childcare providers will more than double from 1,030 to 2,315 nationwide.
The government will extend the period for paying leave benefits when parents take parental leave for more than three months at the same time from 12 months to 18 months. The special period for caregiving will be extended from 3 months to 6 months, and the salary cap will be increased from up to 3 million won to up to 4.5 million won. The government will also consider switching the payment method of parental leave benefits from partial deduction and refunds after returning to work to full payment during the leave period.
The government will also completely revamp its foreigner policy in 2024 to revitalize an influx of foreign labor into Korea. It plans to expand the number of foreign laborers to more than 260,000 in 2024, up 100,000 from 172,000 in 2023, in line with demand for laborers from industries and rural areas. In the first half of 2024, it will also prepare measures to improve the permanent residence and naturalization system for outstanding foreign talent.