Amid South Korea’s declining birthrate, corporations are stepping up with innovative and generous measures to support employees who choose to have children. (Image courtesy of Yonhap)
SEOUL, Dec. 5 (Korea Bizwire) — Amid South Korea’s declining birthrate, corporations are stepping up with innovative and generous measures to support employees who choose to have children. From cash incentives to tailored family support policies, the private sector is playing a growing role in addressing the country’s demographic challenges.
Buoyed by a groundbreaking policy from Booyoung Group, which offers employees ₩100 million (approximately $70,000) for each child born since 2021, the company has set a high bar. For Hong, a 36-year-old employee who recently welcomed a second child, the policy has brought financial relief and familial pride. “Thanks to the support, we can provide more for our growing family,” he said.
Booyoung Group has been offering employees ₩100 million (approximately $70,000) for each child born since 2021. (Image courtesy of Yonhap)
Other companies are following suit. Starting in January, Hanwha’s retail and hospitality divisions will offer ₩10 million for each child born, including ₩20 million for twins. LS Cable & System now extends ₩2.5 million for grandchildren—a unique benefit among large firms.
Celebrating larger families, LX Hausys awarded ₩100 million to an employee who welcomed quadruplets, with an additional ₩50 million from their parent company, LX Group. Similarly, Lotte Group provides minivan rentals for two years to employees welcoming a third child.
LX Hausys awarded ₩100 million to an employee who welcomed quadruplets, with an additional ₩50 million from their parent company, LX Group. (Image courtesy of LX Holdings)
Support extends beyond cash. Hyundai Department Store recently expanded its housekeeping subsidy program to include male employees and doubled its usage frequency. Companies like Hyundai and GS E&C also address infertility struggles by subsidizing fertility treatments, while GS E&C covers half the cost of postpartum care.
Family-friendly policies appear to have tangible effects. POSCO, which offers a suite of 20 programs including childcare facilities, remote work for parents, and flexible workweeks, reported an increase in employee birthrates for two consecutive years.
As corporate efforts gain traction, industry leaders hope such initiatives will serve as a “butterfly effect,” inspiring widespread adoption across the private sector.
Ashley Song (ashley@koreabizwire.com)
