What’s more, these efforts have resulted in an interesting side effect: Singles have become a lucrative business.
Love and money. South Korea has been struggling with a demographic decline for some time. In response, the government is willing to invest financially to turn this situation around. The logic is straightforward. If financial incentives can increase the birth rate, authorities are prepared to offer them. In recent months, they’ve proposed measures such as substantial baby bonuses and tax incentives for families with children. The Asian nation has also extended parental leave, and even ensured that new mothers have access to certain food resources.
Additionally, South Korea has tried to help young people find partners. The country has implemented specially designed dating programs and offered financial support to eliminate the cost of romantic dinners as a barrier. While this might seem excessive, the logic behind it is compelling. In South Korea, there’s a strong correlation between couples and birth rates. In fact, less than 5% of babies are born out of wedlock.
How much money? Most of South Korea’s matchmaking programs are organized by local governments, so the details can vary across different regions. However, a quick Google search reveals that many cities and districts are trying to boost their birth rates through expensive matchmaking initiatives. For example, Seoul’s Metropolitan Government offers couples $685 in cash to get married there.
The demographic crisis is especially severe in the southern city of Busan, one of South Korea’s major metropolitan areas. There, the incentives are even more substantial. Local authorities have taken further steps to support new couples with financial benefits.
The case of Busan. Money is no longer a barrier to finding a girlfriend or boyfriend. In June, The Korea Herald reported that one district in Busan, Saha-gu, is planning a pilot project where local singles born between 1981 and 2001 will be offered $360 to spend on dating. Matching with someone is enough. Additionally, each couple that leaves the event holding hands and planning to meet again would receive an extra $700 to enhance their romance.
$14,000. Offering $360 per person to enjoy on a date was just the initial part of Saha-gu’s program. The goal was to increase support as the relationship progressed, ultimately offering a substantial wedding gift. The district government would give $13,600 in advance to couples who decided to marry. Local authorities even offered newlyweds a larger deposit if they chose to buy a house or needed assistance with rent.
This initiative is best understood in light of the demographic trends in Busan. In the early 1990s, the population was over 3.8 million, but by 2010, it had declined to 3.4 million. This trend mirrors that of the country as a whole. By the end of 2024, South Korea had become a “super-aged” society, with 20% of its population over the age of 65.
Do these subsidies work? That was the big question lingering in the air. In late March, The Wall Street Journal reported that “even $14,000 government handout can’t get South Korea’s singles to marry.” Despite the promise of a $14,000 wedding gift, Saha-gu’s program didn’t achieve significant success. In fact, according to the outlet, not a single participant requested the reward.
Saha-gu’s program is just one of the incentives available for couples in South Korea. The Wall Street Journal highlighted that support doesn’t solely come from the government. Companies and religious organizations are also working to address the country’s demographic crisis. For instance, construction company Booyoung Group offers $75,000 to employees who have a child, while the Yoido Full Gospel Church provides its members with nearly $1,400.
The big question. Why aren’t South Koreans getting married despite these incentives? Why does the birth rate remain significantly lower than it was in previous years? Part of the answer lies in social and cultural changes.
According to a recent survey, three-fifths of employed South Koreans have no issue with remaining single. This perspective is further influenced by economic factors, such as long working hours and rising living costs. The challenges of raising children in a demanding and competitive society also play a crucial role in this decision.
Additionally, South Korean women face difficulties reentering the labor market after becoming mothers. Some dating programs have been discontinued because they couldn’t attract enough interested women. Meanwhile, the heavy paperwork involved in these initiatives has discouraged others from enrolling. One participant told The Wall Street Journal, “It’s more troublesome than you’d think.”
Is the South Korean government a good matchmaker? Matchmaking initiatives have been gaining popularity in the country, but skepticism remains. A representative of the Democratic Party of Korea conducted an analysis and concluded that at least 30 local governments launched 34 matching initiatives in 2024. His assessment was disheartening, describing the measures as “senseless.”
“A total of 4,060 people have participated in matchmaking programs run by local governments over the past three years, but only 24 people ended up married,” the lawmaker pointed out.
However, in 2024, South Korea experienced its first increase in births in nine years, rising by 3.6%. Marriages increased by 14.9%. Still, it remains uncertain whether these figures represent a genuine shift in trends or are merely a result of factors such as postponed parenthood and wedding plans due to the pandemic.
Image | Shawn
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The post A South Korean City Offered Young People $14,000 to Encourage Them to Get Married. They Couldn’t Care Less appeared first on Xataka On.
