SEOUL – The South Korean Ministry of Health and Welfare announced on Thursday a significant expansion of the national child allowance program. Under the newly revised Child Allowance Act, eligibility has been extended to children under nine years old, with additional financial incentives provided to those residing in non-metropolitan and population-declining areas.

Starting this April, children born between January 2017 and March 2018—who were previously aged out of the system—will begin receiving payments again. For these 430,000 children, the April payment will include retroactive amounts for January through March, totaling between ₩400,000 and ₩480,000 per child, depending on their place of residence.

A Tiered Support System for Regional Balanced Growth
The government has introduced a tiered payment structure to address the country’s demographic crisis. While the base allowance remains at ₩100,000 per month, children living outside the Seoul metropolitan area will receive an additional "non-metropolitan bonus."

The benefits are even more substantial for those in designated "Population Decline Zones." Residents in "Preferential Areas" will receive an extra ₩60,000, while those in "Special Areas" will see an ₩80,000 increase. Furthermore, parents who opt to receive the allowance in local gift certificates (local currency) will be granted an additional ₩10,000 monthly incentive.

Step-by-Step Expansion Toward 2030
This year's expansion to nine-year-olds is just the beginning of a long-term roadmap. The Ministry confirmed that the age limit will increase by one year every year:

2027: Up to age 10
2029: Up to age 12
2030: Up to age 13 (covering all elementary school-aged children)

Administrative Ease for Parents
To minimize confusion, the Ministry has streamlined the process. Families of the 430,000 newly eligible children will receive notifications via text and mail. Since the government is utilizing existing administrative data, most beneficiaries will receive the funds automatically without the need for a separate application.

"We urge local governments to quickly finalize the necessary ordinances for the local currency incentives," said Lee Sran, First Vice Minister of Health and Welfare. "This expansion is a vital step in easing the financial burden of child-rearing and revitalizing regions facing population depletion."

In total, approximately 2.55 million children will receive the allowance this month, with the government disbursing a total of ₩389.2 billion.

[Copyright (c) Global Economic Times. All Rights Reserved.]