South Korea introduces 1 million won marriage bonus, child savings fund

South Korea is introducing a 1 million won marriage incentive for newlyweds starting next year, a move aimed at easing the financial burden associated with marriage. This direct cash payment replaces the previous marriage tax credit system, which was criticized for not benefiting low-income individuals who do not pay taxes. The marriage incentive will be a one-time, lifelong payment, regardless of income level.

In parallel, the government is launching the 'Our Child Independence Fund.' This savings program allows parents to contribute funds, which the government will then match. The matching contribution varies based on income: households below 50% of the median income will receive a fixed annual government contribution of 1.2 million won, irrespective of parental contributions. For households between 50% and 150% of the median income, the government will match contributions up to a certain limit, with the potential for the fund to grow to between 60 million and 100 million won by the child's 18th birthday.

Child-rearing support is also being consolidated and expanded. Existing benefits like parental allowances and first-meeting vouchers will be integrated into a new 'Child Welcome Support Fund,' providing a total of 10 to 20 million won across four installments, depending on birth order and region. Additionally, a child basic allowance will be introduced in July next year, offering two to three times the current child allowance amount (100,000 won per month) for children under nine. For families providing home care for infants aged 0-1, an extra 300,000 won per month will be provided.

Other measures include easing housing loan requirements for married couples by allowing one spouse to meet the income criteria instead of requiring combined income. Pregnant women will also receive a monthly package of eco-friendly agricultural products for 12 months. The government estimates that through these various support systems, individuals could receive benefits totaling up to approximately 140.57 million won by age 18 and around 195.82 million won by age 34.