International Adoption of South Korean Children - Economic Impact

Economic Impact

Korean adoptees bring in hard currency, which is roughly $15 to $20 million a year. They relieve the government of the costs of caring for the children, which would otherwise be a drain on the budget. International adoption addresses but does not solve a difficult social problem: What to do with orphans and abandoned children? In 1986, South Korea had 18,700 orphaned or abandoned children. Almost half were sent abroad for adoption, 70% of these to the United States, the rest to Canada, Australia, and eight European nations (Rotschild, The Progressive, 1988). At the time of writing (1988) the amount of $15–20m was significant compared to the spending on social welfare.

Some skeptics claim that Korean adoption agencies have established a system to guarantee a steady supply of healthy children. Supporters of this system claim that adoption agencies are only caring for infants who would otherwise go homeless or be institutionalized. While their motives can not be easily determined, their methods are efficient and well-established.

Korean adoption agencies support pregnant-women's homes; three of the four agencies run their own. One of the agencies has its own maternity hospital and does its own delivery. All four provide and subsidize child care. All pay foster mothers about $80 a month to care for the infants, and the agencies provide all food, clothing and other supplies free of charge. They also support orphanages, or operate them themselves. Along with advice from 'counselors' at the agencies, this system not only makes the process of giving up a child easier, it encourages it.

When the time for departure arrives, the babies are flown to their foreign families. Payments are routine to maternity hospitals, midwives, obstetricians and officials at each of the four agencies acknowledged. The agencies will cover the costs of delivery and the medical care for any woman who gives up her baby for adoption. The agencies also use their influence with hospitals, the police, and with maternity homes to acquire children (Rothschild, The Progressive, 1988; Schwekendiek, 2012).

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