[비즈한국] Last year, the number of births in Incheon Metropolitan City increased by 11.6%, marking the largest growth rate among all cities and provinces in the country. This is approximately three times higher than the national average of 3.6%. The Incheon municipal government attributed this success largely to its first "Incheon-style" low-birth-rate policy, the "i-Plus 100 Million Dream." BizHankook examined whether cash support, such as childbirth subsidies from local governments, actually influences the increase in birth rates.
Previously, there were instances of private companies—rather than the central government or local municipalities—offering "100 million won in childbirth subsidies." By looking at the current status of childbirth support policies in cities and provinces that saw high birth rate growth last year, we investigated whether there is a meaningful causal relationship between "cash" or other economic support and birth rates.
Incheon City: Total Fertility Rate Increases for the First Time in 10 Years Following '100 Million' Support
Incheon, which has garnered attention for the rise in its number of births, is implementing the "i-Plus 100 Million Dream" policy, which provides over 100 million won in total support to every child born in Incheon until the age of 18. Specifically, the program adds 28 million won—including the "Angel (10.4 million won) subsidy," "i-Dream Allowance," and transportation expenses for pregnant women—to the existing 72 million won in support, which includes parental benefits, child allowances, first-meeting vouchers, and primary to high school education expenses. While the baseline total is 100 million won, individuals can receive up to 340 million won depending on their personal situation and income. This policy was announced in December 2023, making Incheon the first local government to provide cash support throughout the entire cycle from birth to upbringing.
Following the implementation of this policy in 2024, the number of births in Incheon reached 15,242, an 11.6% increase compared to the previous year (13,659). Looking at the total fertility rate (the number of births per woman of childbearing age), it was 0.69 in 2023, falling short of the national average of 0.72, but rose to 0.76 in 2024, surpassing the national average of 0.75. Analyzing the trend of Incheon's total fertility rate over the past decade, it had been steadily declining: 1.216 in 2015, 1.144 in 2016, 1.007 in 2017, 1.006 in 2018, 0.940 in 2019, 0.829 in 2020, 0.778 in 2021, 0.747 in 2022, and 0.694 in 2023. Incheon City analyzed that its "i-series" policies, including the "i-Plus 100 Million Dream," as well as the second policy "i-Plus House Dream" and the third "i-Plus Transport Dream," contributed to the birth rate increase by encouraging young people to settle in the city.
Daegu, Seoul, and South Jeolla Province, Which Also Saw High Birth Growth, Have Substantial Childbirth Benefits
There has been a persistent demand for "cash" and "economic support" regarding childbirth. According to the "Survey on Perception of Marriage, Childbirth, and Child-rearing" by the Presidential Committee on Ageing Society and Population Policy, the highest percentage of respondents (88.3%) stated they would be "willing" or "very willing" to have children "if their salary remains sufficient even while on parental leave or working shorter hours." This response was the top priority for both men (87.6%) and women (89.1%). About 81.9% of total respondents also chose "if the government's child-rearing allowance increases." Furthermore, regarding priority measures the government should take to promote work-life balance, many chose economic-related answers, such as "minimizing salary cuts due to system usage" (25.1%), "providing compensation for those covering the workload" (21.9%), and "strengthening penalties for workplaces that disadvantage employees for using these systems" (19.1%).
Why are newlyweds in Korea so sensitive to the "economic" aspect of childbirth? Because it costs a lot to raise a child. According to a recent CNN report, the "China Child-rearing Cost Report" published by the YuWa Population Research Institute in Beijing found that the country with the highest child-rearing costs up to age 18 was Korea, at 7.79 times the GDP per capita. This was followed by China (6.3 times), Italy (6.28 times), the UK (5.25 times), and New Zealand (4.55 times). Countries where rearing costs are relatively lower compared to income included Singapore (2.1 times), Australia (2.08 times), and France (2.24 times).
Private education costs for elementary, middle, and high school follow a similar trend. This refers to expenses for supplementary education outside of the formal school curriculum, including tutoring fees, private lesson fees, study materials, and internet lecture subscriptions (excluding EBS). According to Statistics Korea, the "average monthly private education expenditure per student," calculated by dividing the total private education spending by the number of students, has been increasing continuously since 2007. Although it dropped from 321,000 won to 302,000 won in 2020 due to the COVID-19 pandemic, it has since risen sharply. Specifically, it recorded 367,000 won in 2021, 410,000 won in 2022, 434,000 won in 2023, and 474,000 won in 2024.
What about other cities and provinces that chose "cash payments" besides Incheon? Is there a significant change in birth rates? Daegu, Seoul, and South Jeolla Province, which ranked high in childbirth growth this time, also offered substantial childbirth benefits.
Daegu, which recorded an average birth growth rate of 7.5%, provides 1 million won for a second child and 2 million won or more for a third child as part of its "Birth Celebration Fund." The number of beneficiaries in 2024 is estimated at 3,730. Daegu also supports a portion of postpartum expenses through its "Maternal Health Care Worker Dispatch Program." Seoul’s birth growth rate was 5.3%. Seoul provides transportation support worth 700,000 won, 1 million won per mother for postpartum care (2 million won for twins, 3 million won for triplets), and childbirth benefits worth 900,000 won per month for self-employed individuals. South Jeolla Province, which recorded a 5.1% growth rate, introduced comprehensive support similar to Incheon's. By adding a "Birth Basic Allowance" (shared 50-50 by the province and local governments) to central government support, they pay a total of 43.2 million won until age 18. If the child continues to reside in South Jeolla Province until reaching adulthood, families receive 43.2 million won for the first child, 86.4 million won for the second, and 129.6 million won for the third.