Doing better for families beyond promoting childbirth and childcare

The Korean society has struggled with the title ‘the lowest fertility rate among OECD countries’. This paper looks through two national plans on the low fertility in Korea, focusing on the family policies. Childcare has been a popular family policy with the increases of budget and enrollment. This paper examines the history of childcare laws and the increase of the government subsidy on childcare. It discusses some controversies and arguments on childcare policy, such as childcare service hours, stakeholders, and free childcare service for all children. For better child and family well-being, it suggests a widening of range for child allowance and parental leave for both mothers and fathers at private sectors as well as upgrading childcare quality. It proposes possible policy options for childcare subsidy and child allowance by children’s age, parents’ working condition and family income level. It argues that Korea’s public spending on family, especially cash benefits, is the lowest among OECD countries. The budget for child allowance and parental leave should come from public revenue, because the investment for human capital of well-educated women and young children is in the range of social responsibility and government matters, as shown in the national plan on low fertility.