In a strategic move to combat South Korea’s declining birthrate, Saha District in Busan has introduced a groundbreaking initiative that offers monetary incentives to residents who start romantic relationships. As the nation grapples with a demographic crisis, local governments are increasingly resorting to creative policy solutions aimed at encouraging marriage and family formation. The district’s matchmaking event, scheduled for October 2024, is a prime example of these efforts, offering participants up to 1 million won (approximately $720) just for initiating a relationship.
This initiative targets individuals between the ages of 23 and 43, both Korean and foreign nationals, who either reside or work in the district. Applicants will undergo a selection process based on applications and interviews, ensuring that the event attracts serious participants. If couples formed during the event progress to more formal stages of a relationship, such as the traditional ‘sang-gyeon-rye’ family meeting, they stand to gain an additional 2 million won. Furthermore, if these couples eventually marry, they will receive a substantial bonus of 20 million won, with the district offering additional housing support for up to five years.
Saha District’s policy is a response to South Korea’s alarmingly low birthrate, which reached a record low of 0.72 births per woman in 2023, far below the 2.1 births per woman needed to sustain population growth. The declining birthrate has prompted both the central and local governments to treat the issue as a national emergency. In July 2024, South Korean President Yoon Suk Yeol announced the creation of a new Birth Rate Ministry, specifically designed to address the complex factors behind the declining population. Alongside this, companies such as Booyoung Group have implemented their own pro-family policies, offering employees generous bonuses for having children.
Saha District’s unique approach stands out because it offers direct financial support not just for marriage, but for the very start of a romantic relationship. The district’s head, Lee Gap-jun, has framed the event as part of a broader strategy to create a multicultural community that can help reverse the demographic decline. If the event proves successful, the district has expressed intentions to expand the program, potentially including more non-Korean participants in the future.
South Korea’s low birth rate is rooted in broader social and economic factors. High living costs, an increasingly competitive job market, and shifting societal norms have led many young South Koreans to delay or entirely forgo marriage and parenthood. A 2022 report revealed that 81% of young adults in South Korea continue to live with their parents well into their twenties and thirties, a reflection of economic insecurity and societal pressure to succeed before settling down. Moreover, a rising number of South Koreans are choosing to remain single, prioritizing personal freedom and financial independence over traditional family structures.
While Saha District’s matchmaking initiative offers a novel approach to addressing these issues, experts question whether financial incentives alone are enough to reverse the trend. Sociologist Jung Jae-hoon has pointed out that many young South Koreans prefer to spend their resources on themselves rather than starting a family, with the country leading global rankings in per capita luxury spending. Additionally, the broader economic landscape—marked by high property prices, stagnant wages, and a competitive job market—continues to pose significant barriers to family formation.
However, it remains to be seen whether such measures will have a lasting impact. As the country faces an impending population crisis, policymakers will need to adopt a multifaceted approach, addressing not only the financial burdens of starting a family but also the underlying social and economic factors that dissuade many from pursuing marriage and parenthood.
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