Starting in 2022, the government provided families with 2 million won ($1,500) for each child born to assist parents in meeting prenatal expenses. This year, this amount increased to 3 million won for a second child or more and 5 million won for twins. Increasing the cash bonus may raise the level of satisfaction for policy recipients and assist their household economy, but such satisfaction does not last long and the policy is not expected to induce additional births in the long term, the institute said in its report. In 2022, Korea registered a total fertility rate of 0.78, surpassing its own previous record for the world’s lowest fertility rate. This has led various government offices as well as private companies to draw up and prepare relevant policies in a bid to overcome the significantly decreasing fertility rate that is feared to accelerate the demographic cliff, referring to a major decline in the working population.
Expanded Cash Bonus for Childbirth Shows Limited Impact on South Korea’s Falling Birthrate
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