In an unconventional move, South Korean construction firm Booyoung Group is offering its employees a financial incentive to have babies, with a cash reward of 100 million Korean won (about $75,000) for each child born while the employee is working for the company. This policy, applicable to both women and men, aims to counter the country’s declining birth rate. Booyoung Group is the first in South Korea to provide substantial cash support for this purpose. The initiative seeks to address the financial and career costs that often lead young people to delay or forgo having children.
While some South Korean employers, such as Samsung Electronics and LG Electronics, have introduced measures like onsite daycare, fertility benefits, and extended parental leave to support workers in having children, Booyoung Group’s direct cash incentive is an unprecedented approach in the country. In a cultural context where women are traditionally expected to stay home after starting a family, such financial support may encourage employees to consider expanding their families.
South Korea faces challenges related to a high rate of single individuals and societal expectations impacting family planning decisions. The country’s government already provides financial support to new families, offering 1 million won ($740) per month for a baby’s first year.
Declining birth rates are a global concern, with potential long-term implications for workforce shortages. Various countries, including Japan and China, are exploring measures to encourage childbirth, such as expanding parental leave and offering financial incentives. However, studies suggest that these initiatives may not be sufficient to reverse declining birth trends. Factors like long working hours and limited work-life balance often contribute to individuals delaying or avoiding family planning.
