A bold solution for boosting birth rates

In the past week, a sum of 120,000 yen (equivalent to about 1.08 million won) in cash found its way into the bank account of this correspondent. This infusion represents the "018 Supporter" child care support fund, courtesy of the Tokyo Metropolitan Government. This local government initiative offers 5,000 yen per month per child for residents of Tokyo raising children aged 0 to 18, effective from this year onwards. Notably, those raising two children can anticipate a consolidated monthly deposit of 10,000 yen, totaling 120,000 yen annually, directly credited to their bank accounts.

Tokyo subsidies do not impose any income or asset criteria. Among the 14 million individuals with registered addresses in Tokyo, a noteworthy 2 million have availed themselves of this financial assistance. Importantly, these subsidies are inclusive and extend to foreigners without any exclusionary provisions. In an effort to ensure accessibility for non-Japanese speakers, notices in Korean, English, and Chinese have been disseminated on the internet to address concerns that some foreigners may face challenges due to language barriers.

Upon receiving a notice about a grant last year, I initially harbored skepticism, even as I applied. Questions lingered in my mind about how much impact an amount less than 50,000 won per month could genuinely make. Additionally, I pondered whether this initiative was merely a populist policy leading up to the Tokyo gubernatorial election on July 4. However, my perspective underwent a notable shift when a lump sum equivalent to a year's worth of support for two children was deposited into my bank account at this year's commencement.

This support is not the sole financial assistance designated for your child. At the close of this month, local governments will disburse four months' worth of child allowance, a subsidy provided by the Japanese government. Children under three are entitled to 15,000 yen per month, while those aged three to middle school students receive 10,000 yen per month for four months. For instance, having two children under three implies an additional sum of nearly 1 million won in less than a month. Notably, starting in April this year, the Japanese government will eliminate subsidies' income restrictions, mirroring the Tokyo policy. This expanded support will also extend to high school students, where monthly allowances will increase threefold from 10,000 yen to 30,000 yen, commencing in the third month.

Despite Japan's reputation for caution, often expressed as "never cross a stone bridge even after knocking on it," the country has demonstrated a faster and more proactive approach than Korea in addressing low fertility rate policies. While Korea faces ambiguity regarding the ministry responsible for low birth rate policies, Japan took a significant step last year by establishing the "Children and Family Agency." This organization consolidates children's policies, previously dispersed across various ministries. Prime Minister Fumio Kishida, directly overseeing the "Children's Future Strategy Meeting," consistently puts forth proposals during each meeting, whether it involves cash payments or expanding childcare leave. A recent point of contention has been the announcement of a plan to collect an additional 500 yen (approximately 4,500 won) in monthly medical insurance premiums to generate funds for addressing the low birth rate. However, This controversy positions Japan several steps ahead of Korea, which is currently grappling with discussions on securing necessary funds.

Even with a total fertility rate of 0.73, signaling a critical situation, there's a lack of crisis-driven action in developing low fertility rate policies in Korea. Whether seeking cost-effective solutions or sophisticated policy designs, the focus appears misplaced. Now is the time to reassess and adopt any moderately successful foreign policy. If the proposal of providing 1 million won per month per child is dismissed as an excessive budgetary waste, gaining momentum to reverse the low birth rate, with less than 200,000 newborns annually, becomes challenging. Isn’t a bold strategy with a sense of speed a Korean trademark?