Expansion of Child Allowance: Over 13 trillion won of National Funds Expected by 2030

The government has decided to gradually expand the target age for child allowance payments from the current under 8 years old to under 13 years old by 2030, which is expected to require an additional 3.5 trillion won over the next five years, bringing the total national expenditure to over 13 trillion won.

According to data submitted by the Ministry of Health and Welfare to Kim Mi-ae, a member of the National Assembly's Health and Welfare Committee, it is projected that a total of 13.3355 trillion won in national funds will be required for child allowance payments from 2026 to 2030.

A total of 13.3355 trillion won in national funds is expected to be required.

Introduced in 2018, the child allowance currently provides 100,000 won per month for each child under 8 years old.

The Presidential Committee on National Planning has decided to expand the age range for child allowance payments as a measure to address the serious low birth rate issue. According to this plan, the current age limit of under 8 years will be extended to under 13 years by 2030.

Financial Burden from Expansion of Child Allowance

This cost estimate is based on maintaining the current payment amount of 100,000 won per month and the plan of the National Planning Committee to increase the target age by one year annually from next year until 2030. Accordingly, the number of child allowance beneficiaries is expected to increase by approximately 60% from 2.15 million (under 8) this year to 3.44 million (under 13) by 2030.

Looking at the specific budget allocation plans, 2.2201 trillion won of national funds is scheduled to be provided for child allowance next year. This is an increase of 261.3 billion won compared to this year’s child allowance budget of 1.9588 trillion won.

Subsequently, it is expected that 2.4379 trillion won will be allocated in 2027, 2.6600 trillion won in 2028, 2.8903 trillion won in 2029, and 3.1272 trillion won in 2030. As a result, an additional budget of 3.5414 trillion won will be needed by 2030.

The Ministry of Health and Welfare stated that regarding the financing plan, it will "discuss the phased expansion with financial authorities in accordance with future legislative amendments."

Member of the National Assembly Kim Mi-ae stated, "At the committee level, we will closely examine the assumptions behind the estimates and objectively compare the cost-effectiveness of universal versus targeted child allowances to discuss reforming the system in a way that ensures fiscal sustainability."

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