South Korea Pays Grandparents to Help Raise the Next Generation
South Korea has introduced financial incentives for grandparents who help care for young children. The scheme, first launched in Seoul in 2023, now pays eligible families a monthly stipend for childcare support. By the end of 2025, thousands had already benefited from the initiative.
The program began in Seoul, offering $204 per month to grandparents who provide at least 40 hours of childcare. Families qualify if their children are aged two to three and their household income does not exceed 150% of the national median. Eligible households include those with working parents, single-parent families, and larger families.
Since its launch, the scheme has expanded to Jeju Island, Sokcho, and other regions like Busan, Incheon, and Gyeonggi Province. Paju, for example, pays grandparents $200 monthly for similar support. The initiative aims to ease childcare pressures, as many families rely on grandparents due to limited daycare availability.
In 2025, South Korea recorded 254,500 births—a 6.8% increase from the previous year and the largest annual rise since 2007. Despite this, the country's median age continues to climb, reaching an estimated 44.5+ years by 2026. While the program has provided relief, it has not yet reversed long-term demographic trends.
By late 2025, 5,466 people in Seoul alone had received support through the scheme. The policy has become a model for other East Asian cities facing similar childcare challenges. Though birth rates saw a slight rebound, the broader impact on South Korea's ageing population remains limited.
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