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Child care subsidy to benefit all 3 and 4-year-olds

Jan. 18, 2012 - 15:40 By Korea Herald
Starting next year, all families with children aged 3-4 who are going to kindergarten or a daycare center will receive 220,000 won ($190) every month as a childcare subsidy.

A kindergarten and child care support program, unveiled by the Ministry of Health and Welfare on Wednesday, will also allow state support for all children aged 5 or under to increase to 200,000 won next year from this year.

According to the ministry, the subsidy will be given in the form of kindergarten or daycare center fees for 3- or 4-year olds regardless of the income level of their parents. The amount will rise to 240,000 won in 2014, 270,000 in 2015 and reach 300,000 won in 2016.

Earlier, the government had decided to give 394,000 won in monthly child care subsidies to each family with infants less than 1 year old from 2013. Families with children aged 1, 2 and 5 will receive 347,000 won, 286,000 won and 220,000 won, respectively.

“The plan came as many parents with children between 3 and 4 years old complained about the previous plan giving benefits to children less than 2-years-old or 5-year-olds only,” a ministry official said, adding that the plan was confirmed at the inter-agency crisis management meeting on Wednesday.

The budget will be financed by both central and regional state coffers till 2014. From 2015, the local governments will take over the funding responsibility.

Under the new plan, families that do not send their children to kindergartens or other daycare facilities will also be able to receive subsidies.

Families with a net income belonging in the bottom 70 percent bracket will receive childrearing payments even though they do not send their children to child care institutions. The income bracket portion for the subsidy qualification is a rise from the current 15 percent, and is expected to cover as much as 640,000 families from next year.

The universal childcare welfare program is seen as the government’s determination to prioritize child care as a means to raise the low birthrate through support for childbirth.

President Lee Myung-bak promised aggressive support for childrearing in his New Year speech, saying childrearing “is the surest investment in the future.”

“Overall, the support system is expected to add a sense of security for those people planning to have children,” the ministry official said.

By Bae Ji-sook (baejisook@heraldcorp.com)