The government is moving to close a gap in child-rearing benefits that could leave families more than 34 million won apart depending on whether a baby is born a single day earlier or later. It is considering applying an overhaul of child-rearing benefits, originally set to take effect in July 2027, retroactively to children born from January of that year.
A One-Day Gap Worth Up to 34.28 Million Won
According to a report on major policy initiatives submitted to the National Assembly's Health and Welfare Committee on the 14th, the Ministry of Health and Welfare is reviewing a plan to extend the scope of the benefit overhaul, scheduled to take effect in July 2027, to children born on or after Jan. 1 of that year.
The government had planned to apply the new support system only to children born after July 2027, taking into account the time needed to prepare for implementation. But the plan came under review after critics pointed out the wide gap in benefits between babies born in June and those born in July.
The overhaul centers on merging the existing first-meeting voucher, parental allowance and child allowance into two new programs: a newborn welcome payment and a basic child allowance.
The newborn welcome payment provides 10 million won for a first child, 12 million won for a second and 15 million won for a third or later child, paid in four installments over the first year after birth. An additional 5 million won is provided in designated priority areas.
The basic child allowance pays 200,000 won a month for children from birth through age 12, rising to 300,000 won a month in priority areas. Children aged 0 to 1 who do not attend day care also receive an additional 300,000 won a month in home-care supplements.
Thousands of Won Apart Over a Single Day
The problem is that setting the cutoff date at July 1, 2027, means the scale of support will differ sharply even among children born in the same year.
For a first child raised at home in the greater Seoul area, a baby born on June 30 would receive a total of 35.6 million won under the existing system — 2 million won from the first-meeting voucher, 18 million won in parental allowance and 15.6 million won in child allowance.
A child born just one day later, on July 1, would fall under the new system and receive a total of 48.4 million won — 10 million won from the newborn welcome payment, 31.2 million won in basic child allowance and 7.2 million won in home-care supplements.
That amounts to a difference of 12.8 million won in total benefits based solely on a one-day gap in birth dates.
The gap widens further for a third or later child raised in a priority area designated as a region facing population decline. A third child born on June 30, covered by the existing system, would receive a total of 39.72 million won — 3 million won from the first-meeting voucher, 18 million won in parental allowance and 18.72 million won in child allowance.
A third child born on July 1, by contrast, would receive up to 74 million won — 20 million won from the newborn welcome payment, 46.8 million won in basic child allowance and 7.2 million won in home-care supplements.
The difference between the two children comes to 34.28 million won.
President Lee Also Raises Fairness Concerns
As concerns mounted that child-rearing benefits could vary widely by date of birth, President Lee Jae-myung called for the system to be revised.
"Children born on June 30 and July 1 must not be treated differently because of a cutoff line drawn for administrative convenience," Lee said at a Cabinet meeting last month. "Shouldn't children born in the same year be treated the same?"
Health and Welfare Minister Jung Eun-kyeong also said during National Assembly discussions that the ministry would review applying the change retroactively by birth year, using supplementary provisions in the law.
The option the government is now considering most seriously would keep the effective date at July 1, 2027, as planned, while retroactively paying the revised benefits to children born between January and June of that year.
Making that happen, however, would require additional funding and amendments to the relevant laws. By the government's estimate, applying the new system to children born from January 2027 would require roughly 250 billion won in additional budget.
The ministry plans to support an amendment to the Child Allowance Act and the National Assembly's review of next year's budget bill through December this year, and to complete development of computer systems and revisions to subordinate legislation in the first half of next year.
Whether the retroactive application goes ahead is expected to be decided through legislation and budget talks in the National Assembly.