Sep. 14, 2009 (The Korea Times) -- By Jane Han
Staff Reporter
For Moms contemplating a third child, here's some encouraging news: Raising your third will only cost a fraction of the first two.
That's because support is not only coming from central and city governments, but also private and public companies, which are willing to subsidize everything from diapers and baby food costs to electricity bills in an attempt to boost the country's record-low birthrate.
The Korea Electric Power Corporation (NYSE:KEP) (KEPCO), the country's state-run power firm, starting last month began slashing 20 percent of monthly electricity costs for households with three or more children.
Families can apply for the subsidy through their apartment management office or directly with KEPCO, according to officials, who estimated that an average household with three children will save anywhere from 33,000 to 41,000 won per month.
Ildong Foodies, a leading baby food company, kicked off an incentive program in July, which offers discounts on its baby food products for online shoppers who hold a government-issued validation card proving that they have three or more children.
"Food costs account for one of the largest chunks of child-raising expense," said Kim In-ho of Ildong, explaining that the program was aimed at helping lift a major burden for families wanting to have more children.
Hyundai and Lotte department stores introduced discount campaigns last week to offer 10 to 20 percent discounts on selected child-related merchandise for shoppers raising three or more children.
Lotte went further in teaming up with the Ministry of Health, Welfare and Family Affairs to create a more encouraging environment for working women to give birth. The retailer earmarked 15 billion won until 2011 to ramp up the country's birthrate.
Daehan Pulp, a major diaper manufacturer, launched a diaper giveaway program in April, through which it supplies unlimited diapers for one selected family per month for six months.
"South Korea's low birth rate is a serious issue not just for today, but for the future," said an official of Daehan Pulp, who stressed that the private sector must help support financially-challenged couples in giving birth.
According to the World Health Organization in May, South Korea's birthrate was the world's lowest out of 193 nations for the second consecutive year, with one woman giving birth to 1.2 babies on average.
