South Korea announces 2025 welfare and financial support measures

South Korea has finalized several social welfare and financial support measures for its 2025 budget. The Ministry of Gender Equality and Family has approved a budget of 2.0119 trillion won, a 5.5% increase from the previous year. Key initiatives include a new monthly allowance of 230,000 won for unmarried or single parents during pregnancy, provided for three months. Additionally, the eligibility for single-parent family welfare benefits will expand from those under 65% of median income to those under 66%.

To encourage marriage, a new marriage support fund will provide 500,000 won per person (1 million won per couple) to those who register their marriage after January 1, 2025, regardless of income. The ministry is also increasing investments in protecting at-risk youth and implementing AI-based systems to combat illegal sexual exploitation content.

In the financial sector, the Financial Services Commission is introducing the ‘Child Independence Fund’ to help minors build long-term assets. While the government will provide matching funds based on household income levels, the Ministry of Economy and Finance confirmed that parental contributions to this fund will be included under the existing 20-million-won gift tax exemption limit for minors over a 10-year period. The Financial Services Commission has allocated 9.2417 trillion won for its 2025 budget, with a significant portion dedicated to youth asset formation.