"'Some Get KRW 74 Million, While a One-Day Difference Means a KRW 34 Million Gap' Sparks Outrage... President Weighs In"

Government Considers Retroactive Childcare Benefit Payments for Children Born From January 2027
Benefits Could Differ by Up to 34.28 Million Won for Children Born One Day Apart

The government is considering extending its new child-rearing support benefits, the Child Basic Allowance and Child-Rearing Support Grant, scheduled to launch in July 2027, to children born on or after January 1, 2027. The move comes after concerns were raised that support could differ by more than 34 million won simply because two children were born one day apart.

According to Yonhap News Agency on October 14, the Ministry of Health and Welfare said in a report on the status of its major initiatives submitted to the National Assembly’s Health and Welfare Committee that it had budgeted for the benefits to go to children born from July 2027, but was reviewing a plan to begin payments for children born in January. The eligible group is being expanded after concerns were raised about the fairness of tying eligibility to the start date of the program.

Newborns lie in beds in the neonatal unit at Ain Hospital in Michuhol-gu, Incheon. Photo by Kang Jinhyeong

Up to 34.28 Million Won Difference Between Children Born June 30 and July 1

The government plans to consolidate the existing First Meeting Voucher, parental benefits and child allowance into the Child-Rearing Support Grant and Child Basic Allowance. The Child-Rearing Support Grant will provide 10 million won for a first child, 12 million won for a second child and 15 million won for a third or subsequent child, based on birth order. The grant will be paid in four installments, once per quarter during the child’s first year. An additional 5 million won will be provided in designated priority areas, including regions facing population decline.

The Child Basic Allowance will be paid monthly from birth through age 12. It will amount to 200,000 won per month in regular areas and 300,000 won in priority areas. Families who care for infants at home may also receive a separate supplement.

The issue is that the amount of support varies significantly depending on when the program takes effect. For a first child raised at home in the Seoul metropolitan area, a child born on June 30 next year would receive a total of 35.6 million won over 12 years under the existing programs: 2 million won from the First Meeting Voucher, 18 million won in parental benefits and 15.6 million won in child allowance.

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By contrast, a child born on July 1 would qualify for the new program and could receive a total of 48.4 million won: 10 million won from the Child-Rearing Support Grant, 31.2 million won from the Child Basic Allowance and a 7.2 million won home-care supplement. That means the child born just one day later would receive 12.8 million won more.

The gap would be even wider for families with three or more children. If a family raises a third child in a priority area facing population decline, support under the existing programs would total 39.72 million won. That amount comprises 3 million won from the First Meeting Voucher, 18 million won in parental benefits and 18.72 million won in child allowance for a priority area.

Under the proposed changes, however, the family could receive up to 74 million won: 20 million won from the Child-Rearing Support Grant, 46.8 million won from the Child Basic Allowance and a 7.2 million won home-care supplement. This would create a 34.28 million won difference between children born on June 30 and July 1.

President Lee: "Children Born in the Same Year Should Be Treated the Same"

As the scale of support would vary depending on a child’s date of birth, concerns about fairness have been raised, prompting President Lee Jae-myung to call for improvements to the system. At a Cabinet meeting last month, Lee said, "Children born on June 30 and July 1 should not be treated differently because of an administrative convenience cutoff," adding, "Shouldn’t children born in the same year receive the same treatment?"

Health and Welfare Minister Jeong Eun-kyeong also said during discussions in the National Assembly that the government would consider adding a provision to the law’s supplementary clauses to apply the benefits retroactively based on the year of birth.

The leading option currently under review is to keep the program’s launch date in July 2027 while making payments retroactive to children born on or after January 1.

However, securing additional budget and passing relevant legislation remain necessary before payments can begin. Expanding eligibility to children born from January next year is estimated to require about 250 billion won in additional funding.

The Ministry of Health and Welfare plans to support amendments to the Child Allowance Act and deliberations on next year’s budget by December this year. It also plans to complete development of the relevant computer systems and revisions to subordinate regulations in the first half of next year.

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