The pharmaceutical and biotech industries are joining the effort to address the alarmingly low birth rate. (Image courtesy of Yonhap)
SEOUL, Jul. 25 (Korea Bizwire) – As South Korea grapples with its alarmingly low birth rate, the pharmaceutical and biotech industries are joining the effort to address this pressing social issue.
Companies are expanding childbirth subsidies and implementing support measures for couples struggling with infertility, all in a bid to encourage employees to have children.
According to industry sources on July 24, HK inno.N, a leading pharmaceutical company, has significantly increased its childbirth benefits since May.
The company now provides 10 million won for the first and second child, and 20 million won for the third child. This marks a substantial increase from their previous policy, which offered 1 million won for the first child, 2 million for the second, and 10 million for the third.
Yuhan Corporation, another major player in the industry, introduced a policy in August of last year offering 10 million won to employees upon the birth of a child, with the amount doubling to 20 million won for twins.
The company has even applied this benefit retroactively at 50% for births that occurred from January to July of last year. In 2023, Yuhan reported distributing childbirth subsidies in 82 cases, totaling 640 million won.
PharmGen Science recently implemented a similar tiered system, providing 1 million won for the first child, 3 million for the second, and 10 million for the third and subsequent children.
Beyond financial incentives, companies are also enhancing support for couples dealing with infertility and expanding parental leave policies.
HK inno.N offers financial assistance for artificial insemination or in vitro fertilization treatments to employees diagnosed with infertility, supplementing government support.
The company has also mandated a minimum one-month consecutive parental leave immediately following maternity leave.
Samsung Biologics has gone a step further, offering up to one year of leave for infertility treatment. The company also provides flexible working hours for pregnant employees and those with young children, as well as time off for prenatal check-ups.
Industry insiders believe these policies not only address the birth rate issue but also aid in attracting top talent.
“Growing pharmaceutical companies need a lot of skilled professionals,” said one industry representative. “Expanding welfare programs, including childbirth incentives, greatly helps in securing talented individuals.”
The representative added, “As merit-based hiring practices increase the number of female executives and employees, support measures for these potential parents are becoming more prevalent.”
M. H. Lee (mhlee@koreabizwire.com)
