South Korea offers up to $14,600 to newlyweds, experts question long-term effectiveness

Facing declining fertility rates and population loss, localities across the country have expanded their strategies from traditional childbirth subsidies to financial incentives that now cover dating expenses, weddings, and honeymoons.

In Busan's Saha District, authorities offer up to 20 million won to couples who marry after participating in district-organized matchmaking events. Benefits include 500,000 won for dating expenses, 1 million won for engagement meetings, and a 10 million won honeymoon travel subsidy, according to Korea Times.

"This is one component of our population policy to counter the crisis of low birthrates and regional decline," a district official said, noting that no couples have yet received the full benefit.

Similar programs are emerging nationwide.

In Geochang County, South Gyeongsang Province, newlywed couples aged 19 to 45 who reside in the area for at least three months can receive 600,000 won annually for three years.

In the same province, Hadong County recently raised its marriage grant from 5 million to 6 million won. Other localities, such as Goseong, Uiryeong, and Miryang, provide between 1 and 2 million won.

Seoul, which had South Korea's lowest fertility rate at 0.58 in 2023, plans to introduce a one-time "marriage starter fund" of 1 million won for newly registered couples starting in October.

The Seoul Metropolitan Government will also host "Seolem, in Hangang Season 2" at Saebit Island Park on June 21. The event, sponsored privately, includes boat rides, one-on-one conversations, games, and dating advice for unmarried Seoul residents born between 1980 and 2000. Matches will be announced the following day, with each couple receiving up to 10 million won in dating expense coupons, The Korea Herald reported.

Gyeonggi Province will implement a similar payment scheme for couples aged 19 to 39 starting next month.

In some rural regions, incentives are more generous. Sunchang County in North Jeolla Province offers 10 million won in local currency over four years to newlyweds who commit to staying at least one year. Gimje and Jangsu counties have provided comparable benefits since 2020 and 2018, respectively. Hwasun County in South Jeolla Province and Yeongdong County in North Chungcheong Province offer similar incentives, paid over five years.

Despite the widespread introduction of marriage incentives, their long-term effectiveness remains uncertain. Jinju City in South Gyeongsang Province, which has awarded marriage subsidies of 500,000 won to over 4,000 couples since 2021, has observed little improvement in overall marriage rates.

Similarly, Jangsu County's marriage rate has continued declining despite its 10-million-won program, which began eight years ago, except for temporary improvements in 2023 and 2024.

Experts caution that marriage subsidies may repeat past shortcomings of childbearing incentives, which failed to reverse the fertility decline despite years of investment.

"Policies should focus on creating an environment where work and family can coexist, and where housing burdens are eased," Hong Suk-chul, an economics professor at Seoul National University, told Korea Times.

"Current cash-based incentives, driven by local competition and rushed implementation, are distorting the policy landscape and need to be restructured."

South Korea’s total fertility rate, the average number of children a woman is expected to have, rose slightly to 0.75 in 2024 from 0.72 in 2023 but remained the lowest among OECD nations.

An April survey by the Korea Population, Health and Welfare Association showed that about 26.6% of unmarried women and 18% of unmarried men have no intention of getting married.