Current Policies and Programs Addressing Childcare and Eldercare in South Korea

South Korea has experienced rapid economic growth and accelerated industrialization and modernization within a relatively short period of time in the seventies and eighties (Jang, 2009). Social policies were heavily oriented in supporting the government’s development strategies in terms of increasing human capital and improving health through public investment in these sectors (Song, 2014). Through most of that period, families were encouraged to carry the entire burden of care work and childrearing responsibilities, and social policies played a minimal role in sharing this burden, being mainly targeted to very limited low-income groups. Furthermore, filial piety, called hyo, one of the Confucian ideologies that served as a dominant foundation of state philosophy before the modern era of South Korea, remained even after the establishment of modern government and functioned as an essential foothold in determining care responsibility, unloading it entirely to the family (Lee, 2017).

However, demographic shifts, government regime change, and democratization process highlighted the need to address issues of redistribution and welfare and the important role of the state. The concept of the state serving as the main care provider is now gaining more attention, with its importance highly underlined in the current era of low fertility rates and an aging population in South Korea. In response to increased social awareness and demands, the South Korean government has shown efforts to revalue care work and reach a range of families’ needs.

The major care policies that South Korea currently has in place are:

• the Early Childhood Education and Care Policy,
• the Long-Term Care Insurance (LTCI) Program,
• the Maternity Protection Act, and
• welfare policies for the disabled.

Gilbert and Neil (1974) in their book Dimensions of Social Welfare Policy introduced the idea that social provision can be divided into several types; power, cash, vouchers, time, services, and opportunity. The order of each type represents the degree of freedom of choice; for example, cash represents more freedom of choice compared to services. South Korea’s social and family policies have shown preference for expanding government provided care services, rather than developing social provision in the form of time or cash benefits. However, after recovering from economic crisis (1997-1998) and welfare reform (1999-2001), the Korean government has assumed greater responsibility by legislating, financing, and providing welfare, particularly childcare and elderly care, in public sectors, community level/local government sectors and also supporting the private care market sector. Promoting more care services supported the creation of more jobs in the care sector and allowed unpaid caregivers/housewives to enter labor force as paid careworkers.

South Korea’s social policy has gone through dramatic reforms recently, with the government moving its focus beyond the expansion of existing services towards creating policies (in the form of parental/emergency care leave as well as vouchers and allowances), which provide  not only services but also financial support to households who take care of dependent family members on their own.

Currently the basic model for childcare in South Korea is to provide government-supported daycare (9:00 am to 4:00 pm) and education for all children from the ages of 0-6 years. When the model was first introduced, there were several blind spots and families’ needs were not always met. For example, early morning and late-night care (i.e. after 5:00 pm) was not provided. Korean society is notorious for long workhours for employed individuals, and the model doesn’t allow many dual-earner parents to both remain in full-time employment or the model requires them to find additional, often costly, care services. Over the last few years off-hours (7:00 am to 10:00 pm) care services were created and expanded to meet these unmet care needs. In addition, to prevent sole-care burden (“독박육아”, dok-bak-yook-a) among those who raise children alone at home, community-based childcare services for unpaid caregivers (e.g. housewives) were developed by local government subsidies. The prime objective of this service was to create a space for sharing childcare information within the community; engaging in education and entertainment together; and for lessening the burden of care, through services like childcare centers and co-parenting cafés.

Although the government (both central and local) expanded social policy significantly and provided huge amounts of subsidies for these services, several policymakers and researchers point out that parents or caregivers still feel burdened with care for their children and a great proportion of the expenses are still paid by the users.. For most social services, middle-class families are not eligible or only receive partial benefits since these programs mainly target low income families.

Even though the government has expanded social welfare programs since 2000, this was not in effect to impact the fertility rate. Therefore, the service-based childcare model has brought about discussion and debate in South Korea, as people tend to recognize that public services cannot meet the various needs of every family in the country. For example, for child care services, there has been debate on whether or not it is good for young children to stay 7-10 hours in a daycare center. Some scholars have also argued that there is a need to support caring for children “at home” or providing services in a “home-like” environment (Lee and Kim. 2011).

South Korea is also facing a “parental rights movement”, with advocates promoting family time and quality time for caring for children. Providing “time” for parents is the solution they feel will help parents the most. To provide higher flexibility for dual-earner parents who at the same time want to take care of their children by themselves, the government has pushed for a full year paid parental leave program. This was designed to give additional leave to parents who get 90 days maternity leave (fully paid) if they give birth. Both employed mothers and fathers can use full year parental leave until one child gets to age 9, respectively. This leave program guarantees about 50% of personal monthly income (although there is a ceiling for the income compensation). Although this full year parental leave program started in early 2000, it had been rarely practiced, as employers and sometimes even employees were reluctant to use it. However, to boost the low fertility rate, the government is now pushing for parents with young children to actually use this program. This is done by subsidizing (relieving company tax, spending direct financial funds), both in public sectors and private companies. According to labor statistics (2017) only 34,898 mothers and 502 fathers used parental leave in the year 2009, while, in 2017, the number of parents using the leave almost doubled for mothers (78,080) and increased dramatically for fathers (12,043).

In addition to parental leave policies, a financial benefit (age 0-5 years) starting from July 2018 will be provided to families with young children, with the eligibility set by their income level.

Compared to childcare, eldercare provision in South Korea has a shorter history. In 2008, the issue of eldercare gained greater attention, due in large part to the rapid growth of the elderly population and increase in life expectancies.  A state-supported model of eldercare was developed as a result. The primary eldercare provision comes from long-term care insurance (LTCI), which allows all elderly with care needs access to non-live-in domiciliary (e.g. home helper services) and community and institutional-based care services, delivered by public and/or private for- and not-for-profit service providers. Unfortunately, the LTCI covered only 7.5 percent of total elderly population (age 65+) in South Korea, according to 2016 statistics (retrieved; http://www.longtermcare.or.kr/npb), while in Japan the eligibility rate is 18.4% and 15.2% in Germany. Despite the low percentage of elderly reached, 2017 statistics show that available eldercare services (both in-home service and institutional- based service) are being used by eligible beneficiaries, 84% and 64% capacity rate. Those who are not eligible for the LTCI are able to access comparable elderly care services within the community-based elderly care providers, which are partly supported by public voucher service, but mostly the cost is paid by individual families (Oh 2014: 1166).

Unlike childcare provision, where not only services but also time and money are given to families with young children, the South Korean eldercare model focuses more narrowly on direct service provision. The LTCI sometimes financed a family member who cares for dependent elderly parents if the adult child acquires a certificate of qualification for in-home eldercare, which is very rare. This feature was introduced to support elderly care in rural areas where in-home care workers or facilities are scarce. Meanwhile, it was expanded, later on, to urban areas (Yoon, 2014) to encourage some unpaid family caregivers to obtain care certificates that enable them to take care of their own parents in a more professional settings and earn a small income. Recently, however, the government announced that they will cut down on such family allowances, which could cause a devastating situation for those family caregivers. In order to compensate their income loss, it will be necessary to get a second job as a care provider and care for other non-family members or seek part-time jobs.

In regard to out-of-pocket expenses, even those families who are eligible for the LTCI benefit are required to pay a copayment. Currently, LTCI covers about 80% for institutional care and 85% for in-home-based care (copayment 20% and 15% respectively).  Adult children’s income, commonly from paid full time and part-time work, is needed for caring for their elderly parents, which might drain their time available to care for their parents. Moreover, last year in 2017, the Korean government raised the LTCI payment rate (insurance fee) as well as the copayment rate due to the wage increase for paid caregivers in the LTCI sector, which will likely reinforce the issues described above. Yet, the government announced that they will support low to middle income families by subsidizing the out-of-pocket cost.

In terms of providing leave for caring for dependent elderly, this is much more limited than cash allowance policies. Employed individuals could apply for leave (full 90 days) for a limited period to take care of their parents. However, family leave for eldercare is mostly unpaid, which is very different from parental leave that provides partial income.  The low fertility rates among young couples in Korea encouraged policymakers to adopt family-friendly parental leave policies. Unfortunately, although demographic shifts in Korea are a concern (the country is the world’s fastest-aging developed economy), policymakers have not felt the same incentives and pressure to create comprehensive leave policies to enable families to take care of dependent elderly on their own.

As the preceding discussion demonstrates, developing care models in South Korea has been a continuous process, with the government creating policies in quick response to urgent issues and challenges of the time.  Despite the expansion in social care provisioning there remains questions of their impact on care recipients and their families. We have little information on how families navigate through the public and private care provision and make decisions about caring for dependent children and elderly family members. The issue of how families choose among different care delivery arrangements and to what extent they are able to combine public provision with their own private resources (i.e. time and money) to meet care needs has not been addressed. To date, little is known on how paid caregivers and unpaid family members develop relationships and emotional bonds with care recipients (i.e. child or elderly), and the linkages between paid and unpaid care work.

We argue that, without a comprehensive framework and a strong view on care, welfare and development, care policies in South Korea have yet to achieve the requisite level of recognition and effective utilization. There is still room for improvement to better meet the needs of families and redistribute responsibilities of care between private households and the public.

This blog was authored by Seung-Eun Cha, Hyuna Moon & Eunhye Kang

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