Seoul City to allocate $34.7 bil. for 2025, prioritizing low birthrate, aging society challenges

Seoul Mayor Oh Se-hoon presents the city's budget allocation plan for 2025 during a press briefing at City Hall, Thursday. Yonhap

Seoul City plans to allocate a 48 trillion won ($34.7 billion) budget for next year, prioritizing policies to address the city’s low birthrate and strengthen health and safety measures for residents, the city government said Thursday.

The budget increase is part of the city’s proactive approach to tackle demographic shifts driven by a declining birthrate and an aging population.

The proposed budget represents a 5 percent, or 2 trillion won, increase over this year’s budget, which had seen its first decrease in 13 years.

A key focus of the budget is addressing the low birthrate, a pressing national challenge contributing to the country’s population decline.

The city government plans to allocate 1.1 trillion won toward public rental housing with dedicated support for newlyweds and young people.

The high cost of housing in Seoul remains one of the biggest obstacles for young people considering marriage and parenthood.

A report from the Korea Research Institute for Human Settlements, released in January, showed that housing prices are a major factor influencing decisions to start a family.

In response, the city government will provide 4,000 housing units for newlyweds and an additional 2,504 for young households next year. Additionally, the city will provide a monthly subsidy of 300,000 won for two years to households without property ownership following the birth of a child.

The city also announced a range of new support policies for childbirth and parenting, including subsidies for medical and surgical expenses for infertile couples, financial aid for households with newborns and initiatives to reduce the overall cost of raising children.

"The birthrate has started to show signs of improvement recently, after a long decline," Seoul Mayor Oh Se-hoon said.

"The city government will make bold investments next year to ensure this becomes a sustained trend rather than a temporary situation."

As of July, the number of births across the nation increased by nearly 8 percent in September compared to the same month last year, while marriages rose by 33 percent year-on-year.

Furthermore, the city government plans to establish exercise facilities near subway stations to encourage physical activity, as the population aged 65 and older approaches 20 percent, marking the onset of a super-aged society.

Additionally, a public care system will be introduced to provide services for severely ill and old individuals and support for isolated citizens. A total budget of 36.2 billion won will be allocated for these initiatives.

"We will actively invest in the health and safety of our citizens and the future of Seoul," Oh said.