South Korea has recorded more deaths than births last year, sparking concerns over the nation's demographics.
The news comes as the country has the world's lowest birth rate, data from the World Bank revealed.
According to the BBC, a declining population can severely impact a countries as public spending on healthcare and pensions skyrocket as well as reduces available workforce in the future.
The government scheme would offer 2m won (£1,350) for each child for expenses along with a monthly stipend of 300,000 won (£202.77) up to the child's first birthday.
'Do It For Denmark' Campaign Declared A Success
The news comes years after Danish travel agency Spies Rejser launched a similar campaign in 2016 aimed at increasing birth rates in Denmark as well as book more holidays.
"Denmark is heading for a crisis. The birth rate is at its lowest in 27 years. At Spies, we are concerned. Fewer Danes means fewer to contribute to society - and tragically, fewer to go on holiday with us. Studies show that Danes cultivate 46% more erotica on city breaks, and as this means an increased chance for more babies, we prescribe a medicine consisting of a romantic city break, to save Denmark's future. Let's save Denmark's future with romance," the company said at the time.
The cheeky "Do it for Denmark" campaign was found to be a success, global media reported.