The government will introduce a wide range of welfare and tax policy changes next year, expanding childcare benefits, raising income thresholds for basic livelihood support and creating new incentives for dividend payouts.

The Ministry of Economy and Finance on Wednesday released a publication outlining the key policy and regulatory changes set to take effect in 2026.

Beginning in 2026, the tax‑exempt ceiling for childcare allowances will be expanded, allowing workers to receive up to 200‑thousand won per child per month, instead of a flat 200‑thousand won per worker.

The eligibility age for free early childhood education and childcare support will also be broadened to include four‑year‑olds, down from the current five‑year‑old threshold.

The median income used to calculate various basic livelihood benefits will rise by seven‑point‑two percent for single‑person households and six‑point‑51 percent for four‑person households.

Heavy users of public transportation will be eligible for full refunds on transit expenses exceeding a set threshold through the new “Everyone’s Card,” with the standard cap set at 62‑thousand won for the general public in the Seoul metropolitan area.

To encourage companies to boost dividend payouts and help invigorate the stock market, the government will introduce a separate taxation system for dividend income from listed companies that distribute large dividends to shareholders.