Booyoung Group is launching a groundbreaking initiative to encourage childbirth among its employees by offering 100 million won to those who have children. (Image courtesy of Yonhap)
June, 1 (Korea Bizwire) –In an extraordinary effort to incentivize childbirth among its workers, the Booyoung Group, a major South Korean construction company, has paid out around 7 billion won to 66 employees who had babies, awarding each new parent the equivalent of 100 million won per child.
The eye-popping “birthrate bonuses,” which were granted for children born between 2021 and January of this year, are part of the company’s push to tackle South Korea’s chronically low fertility rate, one of the world’s lowest.
“Our nation’s population needs to increase, and companies should lend a hand,” said Lee Joong-keun, Booyoung’s chairman, explaining the rationale behind the generous payments.
The only condition: The babies must be South Korean nationals, ruling out employees who travel abroad to give birth and obtain another citizenship for their children.
Among this year’s 66 recipients were 44 employees in their 30s, 20 in their 40s and one in their 50s, reflecting South Korea’s delayed parenthood trend. The youngest was a 27-year-old woman. In keeping with the male-dominated construction industry, 48 of the bonus recipients were men.
Booyoung had initially considered offering the payments only for babies born from 2024 onward. But to address concerns from employees who might have delayed childbirth had they known, the company made the bonuses retroactive to 2021 births.
In February, ahead of a tax clarification, Booyoung deposited the lump sums directly into employees’ accounts. “We couldn’t just wait,” a company official said. South Korea later ruled such payments are fully tax-exempt as of January 1 of this year.
Notably, Booyoung attached no strings like minimum tenure requirements. Employees can take the bonus and quit right after if desired, a stance the chairman felt appropriate given they contributed to boosting the national birth rate.
Lee, who has three sons and one daughter, as well as 12 grandchildren, is hoping at least 30 more employees will have babies this year and collect bonuses in early 2024.
Ashley Song (ashley@koreabizwire.com)
