First child to bring up to W15m in benefits from next July

The government is stepping up support for families with multiple children, consolidating a patchwork of existing benefits into a streamlined system with significantly higher payouts. Starting with children born from July next year, parents will receive up to 15 million won ($10,900) for their first child.

The Ministry of Health and Welfare announced the overhaul of child-rearing support payments Friday at Cheong Wa Dae during the "Youth Budget Unboxing" event presided over by President Lee Jae Myung.

The government had previously operated a range of support programs for newborns, including a child allowance, a first-meeting voucher and a parental benefit. Critics had noted the complexity of the system, which paid out through a mix of cash and vouchers across multiple schemes.

Under the new plan, those existing benefits will be consolidated into two programs: the "Child Welcome Grant" and the "Basic Child Allowance," with overall support levels raised.

The Child Welcome Grant is designed to provide stronger support for larger families. It will pay 10 million won for a first child, 12 million won for a second child, and 15 million won for a third child or beyond.

Children living in priority regions designated under the Ministry of Interior and Safety's regional priority index will receive an additional 5 million won.

That means families in priority regions can receive 15 million won for a first child, 17 million won for a second child, and 20 million won for a third child or beyond under the Child Welcome Grant.

The grant will be paid in four quarterly installments over the first year after birth to ensure the funds go toward actual child-rearing expenses.

Unlike the previous first-meeting voucher, which was issued as a restricted-use voucher, the Child Welcome Grant will be paid in cash with no limits on where or when it can be spent.

The Basic Child Allowance will pay 200,000 won per month for children from birth through age 12, with payments continuing through the final month of the year in which the child turns 12. The monthly payment will consist of 100,000 won in cash and 100,000 won in local gift certificates.

Children in priority regions will receive an additional 100,000 won per month under the Basic Child Allowance, bringing their total to 300,000 won — comprising 150,000 won in cash and 150,000 won in gift certificates.

Children aged zero to one who are raised at home rather than enrolled in a daycare center will receive an additional 300,000 won per month.

The existing child allowance stands at 100,000 won per month. The Ministry of Health and Welfare said the revamped Basic Child Allowance will pay up to three times that amount, strengthening income support for families raising children.

Looking at total support for children from birth through age 12, a first child raised at home in the Greater Seoul area will receive 12.8 million won more than under the current system.

A first child raised at home in a priority region will receive 30.28 million won more.

The new Child Welcome Grant and Basic Child Allowance will apply to children born on or after July 1 next year. Children born on or before June 30 next year will continue to receive the existing first-meeting voucher, parental benefit and child allowance.