Monthly childcare subsidies see big boost

Parents with children between 3 and 4 to get 220,000 won per child

By Kim Tae-jong

The government will expand its childcare subsidy program to include all children aged between 3 and 4 attending kindergarten or daycare centers from next year, regardless of their parents’ financial status.

Under the expanded welfare program, parents will receive 220,000 won a month for each child.

Currently, only children from families in the bottom 70-percent income bracket are entitled to benefits of 197,000 won ($172) for 3-year-olds and 177,000 won for 4-year-olds.

The expansion comes after President Lee Myung-bak stressed the importance of childcare and pre-school programs in his New Year’s speech on Jan. 2. He also urged related ministries to set aside more of their budget for childcare support amid a record low birthrate.

The emphasis on pre-school programs comes as married couples are reportedly discouraged from having children due to soaring household spending on private tutoring including childcare fees, he said.

“The government believes that providing quality education for infants and pre-school children is crucial,” said an official from the Ministry of Health and Welfare. “It is not just a matter of welfare but also the most effective investment for the future and a solution to cope with a low birthrate and aging society.”

In addition, the government will also expand the scale of beneficiaries of child-related subsidies.

Currently, only parents with children aged under 3 from the bottom 15-percent income bracket receive up to 200,000 won in monthly subsidies, but the program will be expanded to families in the bottom 70-percent income bracket from next year.

With this expansion, about 640,000 people will be entitled to the benefits next year, up from 96,000 this year.

An extra 2.5 trillion won from the annual budget, which will come from state coffers and various other state funding, will pay for the benefits. Along with the welfare programs for parents, the government will also improve working conditions for teachers at preschools and daycare centers.

These steps were announced at a politically-sensitive time with the nation preparing for parliamentary and presidential elections. Critics say that the government is unveiling expanded welfare programs to curry favor from voters without securing enough funds.

The government said it will press ahead with the plan to set up a uniform curriculum for children aged 3 and 4 at preschools and daycare centers. This is currently only in place for pre-school programs for those aged 5.

The move will allow children to receive the same level and quality of education, without worrying about an educational divide between children from high- and low-income families.