Gyeonggi Province will provide low-interest loans of up to 200 million won to companies certified as “Family-Friendly Workplaces.” (Image courtesy of Gyeonggi Province)
UIJONGBU, May 1 (Korea Bizwire) – Gyeonggi Province, South Korea’s most populous province that surrounds the capital Seoul, has unveiled a new initiative aimed at promoting a work-life balance and addressing the country’s chronically low birth rate.
The provincial government announced on April 30 that it will provide low-interest loans of up to 200 million won to companies certified as “Family-Friendly Workplaces.”
The “Family-Friendly Workplace Special Management Fund” program was established in response to a proposal from the province’s Population Boosting Committee, a task force dedicated to developing countermeasures against the nation’s declining birthrate.
Since 2010, Gyeonggi has been a trailblazer among South Korean local governments, introducing the “Family-Friendly Workplace” certification system to encourage companies to adopt family-friendly policies.
Firms are evaluated annually on criteria such as flexible work arrangements, support for childbirth, child-rearing, education, and care for dependents. Those meeting the standards are awarded the coveted certification.
The new loan program aims to incentivize more private companies to seek the “Family-Friendly Workplace” designation and foster organizational cultures conducive to work-life balance, thereby addressing the low birth rate challenge.
Certified businesses will be eligible for loans of up to 200 million won per company, with a one-year grace period and repayment in installments over a period of two years. The interest rate will be fixed at 2 percentage points below the prevailing bank lending rates.
This year, Gyeonggi Province plans to newly certify 50 companies as “Family-Friendly Workplaces” and renew the certification for firms that received the designation in 2021, with a three-year validity period. Applications opened on April 25.
Detailed information about the “Family-Friendly Workplace Special Management Fund” is available on the Gyeonggi Province Small and Medium Enterprise Promotion Fund Integrated Management System (g-money.gg.go.kr).
Interested companies can apply through any of the 25 branches of the Gyeonggi Credit Guarantee Foundation.
Businesses seeking the “Family-Friendly Workplace” certification can inquire with the Gyeonggi Economic Science Promotion Institute, the agency overseeing the program.
Kim Gwang-deok, director of the Gyeonggi Province Regional Finance Division, emphasized the supportive nature of the initiative, stating, “The Family-Friendly Workplace Special Management Fund is designed to encourage and reward small and medium-sized enterprises that have strived to adopt family-friendly practices, even amidst challenging economic conditions such as high interest rates.”
He expressed hope that more companies would embrace family-friendly policies, leading to the proliferation of work-life balance-oriented workplaces throughout Gyeonggi Province.
The loan program is part of Gyeonggi’s broader “Love Baby Project,” a newly launched initiative aimed at developing population and low birth rate policies that resonate with residents.
The ambiguously named project, a play on the Korean words for “I” and “baby,” serves as the brand for the province’s efforts to address its declining birth rate.
The Family-Friendly Workplace Special Management Fund represents one component of this comprehensive project, specifically targeting the promotion of family-friendly organizational cultures.
M. H. Lee (mhlee@koreabizwire.com)
