Unmarried parents to receive more state benefits

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The face of parenthood is evolving in South Korea, with a steady increase in unmarried parents, a term that no longer exclusively signifies single parenthood. The definition has expanded to include those who choose not to officially register their marriage even after having children, often to meet income requirements for housing acquisition or government support.

Critics argue that this constitutes an unfair way to receive government support, but others assert that recognizing welfare benefits for unmarried households is necessary, particularly as the country’s birthrate falls to a chronic low.

According to 2022 data released by Statistics Korea on Sunday, there were approximately 9,800 births that occurred outside of marriage last year, or 3.9 percent of all births. This is a significant increase from the 6,900 births outside marriage recorded in 2020, marking a 42 percent surge in just two years.

This growing trend of voluntarily choosing unmarried parenthood can be attributed to a decrease in the negative stigma surrounding non-marital births and an increase in the government’s economic support. Recently, a social media post titled “Declaration of birth for an unwed father” garnered over 700 comments on a local online community site, sparking a heated discussion.

The government extends various benefits to single parents, including unmarried ones, including energy bill reductions as well as vouchers for cultural and sports activities. Families with a monthly income of less than 2.07 million won ($1,600) are also eligible for a monthly allowance of 200,000 won.

Not declaring a marriage can also be advantageous, especially when it comes to bidding for public housing. Special housing provisions for newlyweds only apply to urban workers whose monthly average household income is less than 8.46 million won, rendering those employed by large corporations ineligible. In contrast, general housing bids, which are open to single-person households, have a higher income threshold of 6.51 million won, making them more attractive to high-income individuals.

For high-income individuals, staying unmarried also could lead to more favorable loan conditions. When purchasing a home, unmarried individuals with an annual income of less than 60 million won are eligible for specific loans. In contrast, married couples must have a combined income of less than 70 million won to get access to such loans, making marriage registration relatively disadvantageous. As a result, the government plans to introduce a “Special Loan for New Birth” program starting next year, raising the income threshold for married couples to 130 million won.