South Korea is offering expanded government-funded cash incentives to couples who marry in an attempt to reverse the country’s plummeting birth rate crisis.
According to myNews, local governments in South Korea are expanding funding beyond child subsidies to cash incentives for marriage-related expenses, including cash incentives for first dates, engagements, and honeymoon expenses.
KEY TAKEAWAYS:
- The government of South Korea hopes to reverse a declining birth rate by adding cash incentives to newly-married couples in addition to prior incentives put in place for families who have children.
- Twenty percent of South Korea’s population is 65 years+, making the society “super-aged.”
- Some government districts are offering grants to encourage dating and marriage.
- Some experts say cultural change is needed, with more opportunities for work-life balance and better housing, instead of current incentives.
- Other countries are also currently attempting to reverse declining birth rates that will lead to a crisis if not reversed.
WHY IT MATTERS:
As previously reported by Live Action News, in South Korea, the plummeting marriage rate likely directly affects the birth rate; in 2021, 97.1% of children in South Korea were born to married parents, which is significantly higher than the global average. So if fewer people are getting married in South Korea, it’s likely that fewer children will be born there.
As of 2024, South Korea’s fertility rate was just 0.75 – woefully below the replacement rate of 2.1 children per woman. Last year’s rate represents a slight increase in babies born, however; 2024 saw an increase from a 2023 record-low fertility rate of 0.72.
According to Time Magazine, “by the end of 2024 the East Asian nation of 51 million became a ‘super-aged’ society after 20% of its population became 65 years old and above.” This imbalance is not sustainable long-term.
WHAT’S HAPPENING:
Seoul, South Korea’s capital city, had the lowest fertility rate of Korea’s 17 major cities and provinces in 2024 with a fertility rate of just 0.58. Authorities there plan to implement a one-time 1 million won ($726.33) “marriage starter fund” for newly registered couples beginning in October.
Government districts in the country are offering different types of grants, including:
- Busan’s Saha District: Couples who marry after government-sponsored matchmaking event get 20 million won (US$14,700), plus 500,000 won ($363.17) for dating costs, 1 million won ($726.33) for engagement meeting costs, and 10 million won ($7,263.32) as a travel subsidy.
- Geochang County (South Gyeongsang): Newlyweds (ages 19 to 45) who live in the county for more than three months will get 600,000 won ($435.80) each year for three years.
- Sunchang County (North Jeolla): Newlyweds living in the county can receive 10 million won ($7,263.32) over four years.
WHAT EXPERTS ARE SAYING:
While several cities and counties in South Korea are increasing their marriage incentive funds, some experts are questioning the effectiveness of cash incentives for boosting marriage and fertility rates.
“Would anyone really get married just to receive a congratulatory payment?” one local government official said, according to myNews. “Still, doing something is better than doing nothing.”
The effectiveness of the funding programs for incentivizing marriage and childbirth are uncertain, as marriage rates have not increased significantly in the regions where funding has increased. Childbirth subsidies — which were meant to fund baby bonuses, child rearing stipends, and childcare vouchers — previously failed to reverse declining birth rates in the country.
Hong Suk-chul, an economics professor at Seoul National University, said, “Policies should focus on creating an environment where work and family can coexist, and where housing burdens are eased. Current cash-based incentives, driven by local competition and rushed implementation, are distorting the policy landscape and need to be restructured.”
THE BOTTOM LINE:
Aging and declining population rates are affecting many countries, particularly industrialized countries, and will likely lead to a global crisis if not reversed. Though some governments have responded to the imminent population crisis by increasing cash incentives for citizens to have more children, experts seem uncertain that these incentives will reverse the current trajectory.
GO DEEPER:
In 2023, Live Action founder and president Lila Rose interviewed then-presidential candidate Vivek Ramaswamy regarding America’s own population decline:
Some, like Ramaswamy, speculate that ideological issues above and beyond economic concerns may be at play in individuals’ decisions to forego marriage and parenthood.
