This study analyzes how governmental financial support of child care affects the participation of married women in the labor market in Korea. This dynamic analysis used data gathered over four years via the fifth to the eighth Korea Welfare Panel Studies (KWPS). The major results are as follows. First, child care allowance has a negative effect on the participation of married women in the labour market. Providing cash for child care seems to decrease women's labour market participation by cementing the role of women as the primary child care providers in the household. Second, child care subsidy has a positive effect on the participation of married women in the labour market. The support for families, used by child care facilities, is found to increase the probability of married women working either part-time or full-time, thereby decreasing the burden on household budgets caused by child care costs. In conclusion, governmental policy-based child care benefits, used by child care centers, should be continued so that married women may participate in the labour market while raising their children.