Starting next year, the age limit for receiving child allowance will be expanded to those under 8 years old. A new 'Youth Future Savings' program will be established to support asset formation for young people, and 50,000 jobs for the elderly will be added. The livelihood benefit for a family of four will exceed 2 million won, marking a significant increase in the welfare budget.
On the 29th, the government confirmed the '2026 budget proposal' at the Cabinet meeting, which includes these details. The budget related to the social safety net for next year will increase by 9 trillion won to 128 trillion won from this year's 119 trillion won, including tailored support for various life cycles such as low birth rates, youth, aging, and low-income groups.
◇ Expansion of child allowances and care support
The child allowance will be increased from 7 years old to those under 8 years old, and regional differential support will be strengthened. In the metropolitan area, 100,000 won will be provided, 105,000 won in non-metropolitan areas, and 110,000 to 120,000 won in areas with population decline. In particular, if paid with local love gift certificates, up to 130,000 won can be received. The government has increased the related budget from 32.8 trillion won this year to 35.8 trillion won next year.
For families with multiple children or disabilities, the support for diapers and formula will be expanded to cover up to 100% of the median income, allowing an additional 35,000 people to receive support. Free vaccinations will also be expanded, with influenza vaccinations covering those under 14 years old and the human papillomavirus (HPV) vaccine available to boys up to 12 years old.
Care services will also be expanded. The care utilization time for vulnerable groups such as single-parent and disabled families will increase from 960 hours to 1,080 hours per year, and an additional 10% of personal expenses will be supported in areas with population decline. To address the gap in nighttime care, a 'night emergency care allowance' (5,000 won per day) will also be established.
A special account for infants and toddlers will be established, enabling education and childcare support for those aged 0-5. Free education and childcare for infants will be gradually expanded, and the ratio of newly assigned teachers for 0-year-old classes will improve from 1 to 3 to 1 to 2. Funding of 36.5 billion won will be injected into a specific childcare program for dual-income couples that operates before 8 a.m.
◇ Strengthening youth asset and housing support
The government has increased the youth support budget from 4.2 trillion won last year to 7.1 trillion won next year. The newly introduced 'Youth Future Savings' will receive 744.6 billion won. Young people aged 19 to 34 (annual income of 60 million won or less, median income of 200% or less) can contribute up to 500,000 won per month, with the government adding a certain percentage.
In the general program, the government matches 6% of the monthly contribution. For example, if 500,000 won is saved each month, the government will add 30,000 won, resulting in a total of 530,000 won saved, accumulating about 20.8 million won over three years. However, the amount may vary based on standard interest rates and other factors.
A preferential program will be applied to young people employed by small and medium-sized enterprises. If they join within six months of employment, the matching rate will increase to 12%, meaning if they contribute 500,000 won monthly, the government will provide an additional 60,000 won. Those who join the preferential program will be able to accumulate about 22 million won by the end of the three years.
Young people employed in small and medium-sized enterprises outside of the metropolitan area will receive 4.8 million won over two years, and those in areas with declining populations will receive 6 million to 7.2 million won in retention incentives. The job search promotion allowance will increase from 500,000 won to 600,000 won.
Housing stability will also be supported. Monthly rent support for low-income young people will stabilize at 200,000 won for 24 months, and public rental housing for youth will increase from 27,000 units this year to 35,000 units next year.
The community integrated care project will be expanded nationwide. The budget will significantly increase from 7.1 billion won this year to 77.7 billion won next year. The government will provide differential support of 400 million to 1 billion won to 183 cities and counties. An additional 50,000 jobs for the elderly will be supplied, and a new 'Elderly Integration Incentive' of 100,000 won per month will be established for the elderly outside of the metropolitan area. A pilot project for the 'Dementia Safety Asset Management Service' to prevent financial damage to dementia patients will also be implemented from next year, targeting 750 individuals.
The budget for the basic livelihood guarantee will increase from 21 trillion won this year to 23.1 trillion won next year. The median income will be raised by 6.51%, allowing the livelihood benefit for a family of four to increase from 1.95 million won to 2.078 million won, surpassing 2 million won for the first time.
The government will nearly double the number of dedicated staff for suicide prevention from 668 this year to 1,275 next year. Support for treatment costs for high-risk groups will remove income standards, and psychological and economic support programs for bereaved families will be expanded nationwide. A new non-face-to-face one-on-one counseling program for young people will also be established, supporting 1,300 individuals.