Indonesian Citizens Planning to Marry South Koreans Should Read This First
The South Korean government plans to provide cash incentives to couples who register their marriages starting next year. This policy is part of an effort by the government to encourage marriage rates and family formation amidst the country’s low birth rate.
According to the Korea Herald, starting 1 January 2027, couples who register their marriage will receive a cash subsidy totalling 1 million won (approximately IDR 13 million), or 500,000 won (IDR 6.5 million) each. This assistance is provided as a one-off lifetime benefit.
The South Korean Ministry of Gender Equality and Family announced on Tuesday an allocated budget of 166.3 billion won to support the programme. Those who have been married previously are also eligible to receive the subsidy upon remarriage, provided they have not previously received the assistance.
Replacing Marriage Tax Credits
This cash subsidy programme will replace the marriage tax credit scheme, which previously provided benefits of up to 500,000 won for eligible couples. The government decided to replace the scheme because tax credits were deemed to offer insufficient benefits to citizens with low income tax liabilities. Through the cash payment system, the government hopes the programme’s benefits can be received more directly.
However, several questions remain regarding who will be eligible for the subsidy, particularly concerning the status of foreign nationals. An official from the Ministry of Gender Equality and Family stated that the budget has been allocated based on the Subsidy Management Act. Nevertheless, the government is still drafting the regulations that will serve as the legal basis for the programme’s implementation.
The government has confirmed that South Korean citizens will be covered under the policy. Meanwhile, a decision on whether foreign nationals will also receive the subsidy has yet to be finalised. Previously, marriage tax credits applied to foreign residents who registered their marriages in South Korea, regardless of whether their partner was a Korean citizen or not.
Sparking Debates on Fairness
The marriage subsidy plan has not received an entirely positive reception. Some citizens have questioned the reasoning behind the government providing specific assistance to married couples, while single individuals also face high pressures from the cost of living and housing.
Debates have also emerged regarding the types of families recognised under this policy. LGBTQ+ groups and individuals building households outside of legally recognised marriages feel the programme does not yet reflect the changing family structures in South Korea. One comment circulating on social media questioned this inequality, noting that heterosexual couples will receive 1 million won upon marriage, while same-sex couples in South Korea do not yet have access to the same marriage recognition.
Other critics argue that the government should consider various forms of partnerships and households that are increasingly prevalent in society, rather than focusing solely on families formed through official marriage.
Rise of Non-Traditional Households
Changes in household structures are becoming increasingly evident in South Korea. According to the Korea Research Institute for Human Settlements, the number of households consisting of individuals with no marital or blood relationship increased from approximately 214,000 in 2015 to 545,000 in 2023. This development indicates that household forms in South Korea are becoming more diverse.
Interestingly, several South Korean companies have taken different approaches toward employees who choose not to marry. Companies such as LG U+, SK Securities, and KB Securities are known to offer financial allowances to single employees who meet certain age or length-of-service requirements.
Ultimately, this new government policy brings the issues of marriage, family, and social support back into public debate. On one hand, the government hopes financial incentives can help encourage society to marry and build families. On the other hand, questions arise as to whether such incentives are effective enough to address broader issues, such as expensive housing, the cost of raising children, job insecurity, and the changing views of the younger generation towards marriage.