Goyongjin: "Tax credit should be significantly increased from 300,000 to 800,000 won for two children"

Proposal for Amendment to the Income Tax Act

Goyongjin, Member of the Democratic Party of Korea

[Asia Economy Sejong=Reporter Son Seon-hee] Amid South Korea's serious low birthrate problem, a bill has been proposed to significantly expand the tax deduction system based on the number of children compared to the existing system.

On the 18th, Go Yong-jin, a member of the Democratic Party of Korea, officially proposed an amendment to the Income Tax Act with such content. According to the current Income Tax Act, the child tax credit amount is 150,000 KRW per year for one child, 300,000 KRW per year for two children, and for three or more children, 300,000 KRW plus 300,000 KRW per additional child beyond two.

The amendment proposed by Representative Go doubles the tax credit to 300,000 KRW per year for one child. It also includes an additional deduction of 500,000 KRW when having a second child. In other words, if a family has two children, the tax credit amount will increase significantly from the current 300,000 KRW to 800,000 KRW.

The purpose of significantly expanding the child tax credit is due to last year's total fertility rate in South Korea dropping to 0.81, with low birthrate indicators worsening. South Korea's fertility rate has ranked last among OECD member countries for several years. Furthermore, there are bleak forecasts that this year's total fertility rate will fall to the 0.7 range.

Representative Go emphasized, "Having and raising children is becoming too burdensome, and the birth of a second child is decreasing," adding, "More bold policies to alleviate childcare burdens, including tax measures, are necessary."

This content was produced with the assistance of AI translation services.