South Korean Firm Offers Rs 62 Lakh To Employees For Having A Child

In an unprecedented move to combat the nation’s declining birth rate, Booyoung Group, a prominent South Korean construction firm, has announced plans to offer substantial financial incentives to its employees for having children. In a press release on Monday, Booyoung Group revealed its ambitious initiative, pledging to award employees with a staggering 100 million Korean won (approximately Rs 62,3 lakh) for each newborn child. Additionally, the company vowed to distribute a total of 7 billion Korean won (about Rs 43.6 crore) in cash to staff members who collectively have had 70 babies since 2021.

This groundbreaking benefit, available to both men and women, comes as South Korea grapples with an alarmingly low fertility rate. Currently, at 0.78, South Korea holds the unenviable title of having the world’s lowest fertility rate, a trend forecasted to worsen to 0.65 by 2025, as per official statistics from Statistics Korea.

A company spokesperson informed CNN that the benefit is accessible to both male and female employees.

Acknowledging the demographic crisis at hand, Booyoung Group’s Chairman, Lee Joong-keun, emphasised the importance of providing direct financial support to alleviate the financial burdens associated with raising children. Lee expressed hopes that the initiative would position the company as a catalyst for encouraging childbirth and addressing concerns about the country’s future.

At a company event held on Monday, Lee elaborated on the programme’s details, revealing that employees with three children will be offered a choice between receiving 300 million Korean won (approximately Rs 1.8 crore) in cash or rental housing, contingent upon the government’s provision of land for construction.

Booyoung Group, founded in 1983, boasts an impressive portfolio of over 270,000 homes constructed to date, as stated on the company’s website. While the South Korean government and other private entities have previously introduced financial incentives to stimulate childbirth, Booyoung Group’s initiative stands out for its unprecedented scale and direct approach.

Similar efforts to address declining birth rates have been observed in neighbouring China, where companies like Trip.com, one of the world’s leading online travel agencies, have offered annual bonuses of 10,000 yuan (approximately Rs 1.1 lakh) to employees for each newborn child, from the child’s first birthday until they reach the age of five.