S.KOREA’S NEW PLAN TO BOOST BIRTHRATES: CASH FOR DATES, WEDDINGS, AND HONEYMOONS

Mon 26 May 2025:

As South Korea faces declining birthrates and concerns over regional depopulation, local governments are broadening their approach beyond childbirth subsidies, now offering cash incentives to encourage marriage, including support for first dates, engagements, and honeymoons.

However, critics contend that these short-term financial measures may not effectively tackle the deeper structural issues contributing to delayed or reduced marriage rates.

In Busan’s Saha District, local authorities have promised up to 20 million won ($14,700) in payments to couples who marry after participating in a matchmaking event organized by the district.

Additional benefits include 500,000 won for dating expenses, 1 million won for engagement meeting costs and a 10 million won travel subsidy.

“This is one component of our population policy to counter the crisis of low birthrates and regional decline,” a district official said, adding that no couples have received the full payment yet.

Other municipalities across the country are rolling out similar initiatives. In South Gyeongsang Province’s Geochang County, newlyweds aged 19 to 45 who reside there for more than three months receive 600,000 won annually for three years.

Hadong County recently raised its marriage incentive from 5 million to 6 million won. Several other counties and cities, including Goseong, Uiryeong and Miryang, are also offering between 1 million and 2 million won in marriage subsidies.

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Will cash incentives work?

Despite the growing number of programs, their effectiveness remains uncertain. Jinju City in South Gyeongsang Province has distributed 500,000 won in marriage grants to over 4,000 couples since 2021, but overall marriage rates have not significantly changed.

In Jangsu County, where the 10 million won incentive has been in place for eight years, marriage rates have declined except for a temporary bump in 2023 and 2024.

“Would anyone really get married just to receive a congratulatory payment?” said one local government official. “Still, doing something is better than doing nothing.”

Experts said that these marriage incentives may repeat the mistakes of past childbirth subsidies, which failed to reverse declining birth rates despite years of spending on baby bonuses, childrearing stipends and childcare vouchers.

“Policies should focus on creating an environment where work and family can coexist, and where housing burdens are eased,” said Hong Suk-chul, an economics professor at Seoul National University. “Current cash-based incentives, driven by local competition and rushed implementation, are distorting the policy landscape and need to be restructured.”

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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