This study aims to examine the recent debate on child allowance and identify ways to improve it in response to low fertility in Korea. Specifically, this study examines the purpose of the child allowance, constructs a scenario that reflects the appropriate amount of support and the target population, conducts financial estimations, and suggests ways to improve the policy.
The results of this study suggests the future child allowance should move in the direction of expanding the target and amount of the child allowance, with the ultimate goal of responding to Korea's low fertility rate.