Birth benefits of 20 million won, up to 140 million won by age 18... Government's 'radical support' unveiled

The government is moving forward with a plan to support birth, child-rearing, and asset formation, offering up to over 10 thousand won from birth until age 18.

The Ministry of Planning and Budget announced the 'Comprehensive Investment Promotion Strategy by Youth Growth Stage' at the 'Youth Budget Unboxing (Unboxing) 2027' event held at Cheong Wa Dae on the afternoon of the 28th, presided over by President Lee Jae-myung.

The Planning Office plans to expand comprehensive investment by youth growth stage from 28.2 trillion won this year to 43.3 trillion won next year, an increase of 53.5%. Key policies for youth include restoring the ladder of social mobility, reducing gaps at the starting line, and strengthening quality of life.

The Our Child Independence Fund, a joint savings and investment program by the government and parents from birth to age 18, will apply to babies born in September this year. For low-income households with income below 50% of the median, the government will provide 140.57 million won annually regardless of parental contributions. Households between 50% and 100% of the median will receive a 0.14 billion won match for a 500,000 won contribution, while households between 100% and 150% of the median will receive a 0.14 billion won match for a 0.14 billion won contribution.

Tax deductions previously granted for marriage, childbirth, and adoption will be converted into financial support, and cash-based programs related to low birth rates will be integrated. Accordingly, a Marriage Support Grant providing 0.14 billion won once in a lifetime and a Child Matching Support Grant paying a total of 10 million~20 million won to newborn children based on birth order and residence region will be introduced.

Child allowances will be converted into the Child Basic Allowance, increased by two to three times the current amount. The Child Basic Allowance will be paid at different rates by region, with an additional 300,000 won per month for infants aged 0~1 years cared for at home. Thus, the Child Basic Allowance is set at a maximum of 600,000 won per month for ages 0~1 and 300,000 won per month for ages 2~12. The Child Matching Support Grant and Child Basic Allowance will take effect from July next year.

The Cultural Pass, previously provided once in a lifetime to some youth aged 19~20, will be expanded to all youth aged 19~34. The 'Everyone's Card,' which reimburses transportation costs, will expand benefits by introducing new categories for teenagers.

The Army Tomorrow Preparation Savings Account, which supports the social reintegration of soldiers and social service personnel, will continue with an increased support scale of 20 billion won. Under this system, if soldiers save 550,000 won monthly, the government will match 100% of that amount.

To restore the ladder of growth, the 'K-New Deal Academy' program, currently serving 10,000 people, will be expanded to serve 50,000 people. The First Career Project for college students and hiring incentive grants are also being promoted. Hiring incentive grants provide 7.2 million won annually to small and mid-sized companies and 3.6 million won annually to regional large corporations that hire youth.

Youth startup companies with high growth potential based on technology will be separately selected and supported through the 'Youth Startup Package' for business commercialization. A new 'Startup Peace of Mind Insurance' will be introduced for young entrepreneurs in the early stages of startup, supporting business continuity during suspension and recovery upon closure. For youth who join within five years of startup, the government will cover 60% to 80% of monthly insurance premiums depending on the year.

To nurture regional talent, a full scholarship system for local national universities will be introduced. The Regional Talent Scholarship for students at local private universities will expand its scale from 4,000 recipients to 10,000. In the housing sector, more than 50% of universal public rental housing will be supplied to youth. Youth universal jeonse (deposit-based lease) housing with increased support limits will also be newly supplied.

The Youth Future Savings Account, previously available only to youth with income up to a total of 600 thousand won, will remove income eligibility requirements. To encourage early enrollment in social insurance for youth, the government will support one month's National Pension premium, amounting to 42,000 won, for their first time enrolling.

According to the Planning Office, individuals can receive benefits up to a maximum of 140.57 million won by age 18 and up to approximately 195.82 million won by age 34 across stages including birth, child-rearing, education, job hunting, and marriage. This is based on the assumption of being born as the first child in a household with income at 100% of the median in a region with regional preference benefits.

In this case, they will receive 140.57 million won from the Child Matching Support Grant, 71.57 million won from the Our Child Independence Fund, and 54 million won from the Child Basic Allowance by age 18. From age 19 to 34, they will receive support totaling 55.25 million won, including 18.55 million won for full tuition at local national universities, 29.8 million won for employment and asset formation, 5.9 million won for job hunting and training support, and 0.14 billion won from the Marriage Support Grant.

Meanwhile, the Planning Office plans to establish a Future Response Fund financed primarily by additional tax revenues to support youth growth stages. To address structural changes that cannot be handled by short-term measures alone, a 'Medium- to Long-Term National Development Strategy' will also be formulated and announced within this year.