Effective responses to low fertility can be found in expanding the amount and eligibility of child benefits:

• ■A survey on perceptions of child benefits revealed that the following improvements, listed in order of perceived importance, were preferred: increasing the amount of benefits, extending the duration of benefits, adjusting benefits based on the recipients' economic level, and providing additional support for families with multiple children.

• ■The child benefit payment has been frozen at 100,000 won per month for the past five years since its introduction. Considering inflation and public demand for policy improvement, the amount should be increased.

• ■Government assistance programs, such as universal cash assistance, family allowances, and child support, are currently limited to children in their infancy and early childhood. The authors propose extending the age of eligibility for these programs to cover children up to the age of 17.

KIHASA has published the Health and Welfare Issue & Focus, No. 448, titled "Child Benefits in Korea and Improvements Needed." The lead author is Dr. Lee So-young, Director of the Population Policy Planning Group at KIHASA.

Dr. Lee said that slightly more than half of the respondents to the child benefit survey believed the main purpose of child benefits was to help parents with the cost of raising children and that these benefits had a positive impact on their decision to have children.

"In order for child benefits to better guarantee the fundamental rights of children and effectively address low fertility, it is important to gradually expand the number of eligible children and increase the amount of the benefit. It is also crucial to find additional ways to support those in greater need," she said, stressing the importance of continued efforts to underpin these policies with sustainable financing and programs.

Summary of the Brief

• ●The child benefit was introduced on a selective basis in September 2018 for children under the age of 6 in households belonging to the bottom 90% of the countable-income distribution under the Child Benefit Act. It became a universal benefit in January 2019, and is being extended to include children up to the age of 7 starting in January 2022.

• ●Child benefits were spent in the following order: food and snacks, baby and children's supplies, savings (such as insurance) or investments (such as stocks) for children, and education (such as cram school fees).

• ●The overall satisfaction with child benefits was slightly higher than anticipated, scoring around 5.7 on a scale of 10. Additionally, slightly more than 50% of respondents said that child benefits positively influenced their decision to have children.

• ●To ensure that child benefits effectively guarantee children's rights and address low fertility rates, it is crucial to expand the number of eligible recipients and the level of support provided.