Financial Support for Grandparents in South Korea
To combat its critically low birth rate and shortage of daycare centers, South Korea has launched initiatives that provide financial aid to grandparents who care for their grandchildren. For example, Jeju Island began its program in March 2025, offering relatives approximately $200 per month for childcare. The city of Seoul implemented a similar scheme in 2023, providing families with 300,000 won (about $204) monthly. Seoul's program requires at least 40 hours of care per month, the child must be between 2 and 3 years old, and the family's income must not exceed 150% of the national average.
According to a February survey, 99.2% of grandparents expressed satisfaction with the program, and 99.5% would recommend it to others. By the end of 2025, over 5,400 families in Seoul had utilized the program. The breakdown of participating caregivers shows:
- 55% are maternal grandmothers,
- 36% are paternal grandmothers,
- Grandfathers constitute less than 10% of participants.
This data suggests a strong parental preference for family over external caregivers, with nearly half of parents lacking access to emergency childcare and over 45% admitting they cannot manage on their own. South Korea's demographic crisis is among the most severe in the world, making such family-focused policies a critical test.
Rising Birth Rates in South Korea
In 2025, 254,500 children were born in South Korea, a 6.8% increase from the previous year. This marks the largest annual rise since 2007, with the fertility rate climbing from 0.75 to 0.80. The average monthly cost of raising a child has now surpassed 1 million won (approximately $758) for the first time. Children now enter preschool facilities at an average age of 19.8 months, compared to 30 months in 2009.
The program targets families with limited access to institutional childcare, including dual-income couples, single-parent households, and families with multiple children. It runs alongside other measures like parental leave payments, emergency childcare services, and a network of urban play spaces for children.
"Beyond easing the financial burden, this program supports children's healthy development—family care provides them with emotional stability," noted expert Ma Chae-suk.
The introduction of financial aid for grandparents in South Korea could significantly influence the nation's rising birth rates, given that 2025 saw the highest growth since 2007. This underscores the vital role of family support in addressing modern challenges like soaring childcare costs and insufficient daycare access. Consequently, the government's initiatives aim not only at financial relief but also at improving conditions for raising children within a family environment.