South Korea child fund faces birth-date cutoff over up to 22.8 million won support gap

  • South Korea plans to launch the Our Child Independence Fund next year.
  • 146.5 billion won is allocated, with eligible low-income children receiving 1.2 million won annually.
  • Children born before September 1, 2026, could remain excluded pending National Assembly deliberation.

South Korea plans to launch the Our Child Independence Fund in the second half of next year under its 2027 budget proposal, with 146.5 billion won allocated for the program. Parents would open investment accounts in their children’s names, with government contributions managed from birth until age 18 according to household income. Families earning up to 50% of median income could receive 1.2 million won annually without a parental contribution, while households earning 50% to 150% of median income would receive matching support subject to contribution limits. Households above 150% would be excluded. The proposed September 1, 2026, eligibility date has prompted criticism because a child born one day earlier could lose as much as 22.8 million won in government contributions over 19 years, before investment returns. The government is considering separate tax benefits for children excluded from matching support, while the cutoff and program design remain subject to National Assembly deliberation. The proposal also expands broader youth asset-building programs, including changes to the Youth Future Savings Account and a new Youth Opportunity Fund.

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