Origins
The program grew out of the U.S. Earned Income Tax Credit, created in 1975 to offset payroll taxes for low-income workers; Eissa and Liebman (1996) showed it drew many single mothers into work. Korea launched its own earned income credit in 2009, then added a child-focused credit in a 2014 law, paying it for the first time in 2015 at up to KRW 500,000 per child for households under KRW 40 million.
Current rules
After a late-2023 amendment, the income limit is combined total income under KRW 70 million and the benefit is KRW 500,000 to 1 million per child under 18. Household assets must be under KRW 240 million.
| Household | Full-benefit earnings range | Per child |
|---|---|---|
| Single earner | Under KRW 21 million | KRW 1 million, tapering to 500,000 |
| Dual earner | KRW 6 to 25 million | KRW 1 million, tapering to 500,000 |
Assets of KRW 170–240 million halve the award, and any child tax deduction claimed in income tax is subtracted.
Applying and the debate
- Apply in May through Hometax or by phone; late applications within six months receive 95%.
- Payment arrives by the end of September.
- U.S. evidence links extra family income to better test scores (Dahl & Lochner, 2012) and birth outcomes (Hoynes et al., 2015).
- Korean critics say amounts are small relative to child-rearing costs. Related: parental leave and basic livelihood security.
FAQ
- Can dual-earner couples apply?
- Yes, if combined total income is under KRW 70 million and assets qualify.
- Can I get it with the earned income credit?
- Yes, if you meet both sets of requirements.
Sources reviewed: 2026-11-09
References
- 조세특례제한법 제100조의27~제100조의31 (자녀장려금). Korean Restriction of Special Taxation Act articles defining the Child Tax Credit.
- 국세청. (n.d.). 자녀장려금 소개. National Tax Service overview with maximum-benefit brackets by household type.
- Eissa, N., & Liebman, J. B. (1996). Labor supply response to the earned income tax credit. The Quarterly Journal of Economics, 111(2), 605–637. Classic study finding the U.S. EITC raised labor-force participation of single mothers.
- Dahl, G. B., & Lochner, L. (2012). The impact of family income on child achievement: Evidence from the earned income tax credit. American Economic Review, 102(5), 1927–1956. Uses the EITC to show that higher family income improves children's math and reading scores.
- Hoynes, H., Miller, D., & Simon, D. (2015). Income, the earned income tax credit, and infant health. American Economic Journal: Economic Policy, 7(1), 172–211. Finds EITC expansions reduced low birth weight among affected families.
- Nichols, A., & Rothstein, J. (2015). The earned income tax credit (EITC) (NBER Working Paper No. 21211). National Bureau of Economic Research. Comprehensive review of the EITC's history, design and evidence.
- 대한민국 정책브리핑. (2024). '23년 근로·자녀장려금 조기 지급 완료! '24년 상반기분 신청도 놓치지 마세요~. Government news release on early payment and semiannual applications.