Starting Next July, "Child Matching Support Grant"... Up to 20 Million Won in Support

Starting July next year, the existing First Meeting Voucher, Parental Allowance, and Child Benefit for newborns will be consolidated into two programs: the "Child Matching Support Grant" and the "Basic Child Allowance." Depending on the region and the number of children in the family, a maximum of 20 million won will be provided entirely in cash.

On August 28, the Ministry of Health and Welfare announced these childcare benefit reforms during the "Youth Budget Unboxing" event presided over by President Lee Jaemyung at the Blue House. While the government has run a variety of programs such as the First Meeting Voucher, Parental Allowance, and Child Benefit, it has been criticized for a mix of cash and voucher payment methods, and for support decreasing as children grow older. In response, the government has decided to simplify the system and drastically strengthen income security for school-age children.

On the 26th, a nurse is caring for a newborn in the neonatal intensive care unit at CHA University Ilsan CHA Hospital in Goyang-si, Gyeonggi-do. Photo by Yonhap News.

The newly introduced Child Matching Support Grant will provide 10 million won for the first child, 12 million won for the second, and 15 million won for the third or subsequent children, depending on birth order. In addition, children living in preferential regions designated by the Ministry of the Interior and Safety will receive an extra 5 million won, so families with three or more children can receive up to 20 million won. Unlike the existing First Meeting Voucher, which was distributed as vouchers, the entire amount will be provided in cash without any restrictions on usage or time limits, and it will be paid in four installments on a quarterly basis during the first year after birth.

The Basic Child Allowance is a program that provides 200,000 won per month (100,000 won in cash and 100,000 won in local gift certificates) for children from birth up to under 13 years old. For children living in preferential regions, an additional 100,000 won will be provided each month, totaling 300,000 won per month. Furthermore, for 0- to 1-year-old children not attending daycare and receiving home care, an extra 300,000 won will be provided monthly. The core of this change is to maintain strong support through school age, as opposed to the previous system, where the child benefit dropped to 100,000 won per month once a child turned two.

With this reform, the first child who receives home care in a preferential region can receive a total of 30.28 million won more than before, while the first child in the metropolitan area can receive an additional 12.8 million won. The new childcare support system will apply to children born after July 1 next year. Children born on or before June 30 next year will continue to be eligible for the existing First Meeting Voucher, Parental Allowance, and Child Benefit. The Ministry of Health and Welfare plans to amend the Child Benefit Act and update related systems to ensure smooth implementation.

This content was produced with the assistance of AI translation services.