ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Amid Abysmally Low Birth Rate, South Korean Company Offers Employees $75,000 Each Time They Have a Baby

The company stated that the employees with three babies are entitled to $225,000 cash or rental housing.
PUBLISHED FEB 8, 2024
Cover Image Source: Pexels | Photo by Pixabay
Cover Image Source: Pexels | Photo by Pixabay

In response to South Korea's concerning birth rate, a Seoul-based company is taking proactive measures by offering financial incentives to its employees. The company plans to award employees 100 million Korean won ($75,000) for each child they have. The Booyoung Group has pledged to disburse a total of 7 billion Korean won ($5.25 million) in cash rewards to employees who have welcomed babies since 2021.

Representative Image | Getty Images | Photo by Matthew Horwood
Getty Images | Photo by Matthew Horwood

This initiative is inclusive of all employees, irrespective of their gender. South Korea's fertility rate, currently standing at 0.78, underscores the urgency of addressing the nation's demographic decline. This trend reflects a broader demographic challenge prevalent in many Asian countries.



 

Booyoung Group's Chairman Lee Joong-Keun emphasized the importance of "direct financial support" amid Europe's growing elderly population. The company offers employees with three babies the choice between receiving 300 million Korean won (approximately $225,000) in cash or rental housing, aiming to incentivize childbirth and address demographic concerns.

"I hope we would get recognized as a company that contributes to encouraging births… and worries about the country’s future," he remarked.

While the South Korean government has introduced initiatives to promote childbirth, none rival the scale of Booyoung Group's efforts. Meanwhile, China's Trip.com offers its employees 10,000 yuan ($1400) annually for each newborn child until the age of five, reflecting a similar trend of corporate support for family planning.

Image Source: Pexels | Photo by Rene Asmussen
Pexels | Photo by Rene Asmussen

Despite the South Korean government's efforts, including providing a one-time payment of 1 million won (approximately $650) for pregnant women, there has been limited success in incentivizing couples to have more children. "Since many South Korean women have jobs these days, they are reluctant to have babies because it is extremely difficult to work and raise a child at the same time," said Kim Seong-kon, a professor emeritus of English at Seoul National University.

"Besides, pregnant women have to face serious disadvantages at work in South Korea. To make matters worse, many childcare facilities are not trustworthy, and good ones are hard to get into," Kim wrote in the Korea Herald via The Guardian.

South Korea has had the lowest fertility rate in the world since 2013, and couples are increasingly choosing to be child-free. Elon Musk, however, believes this to be dangerous, stating, "Population collapse due to low birth rates is a much bigger risk to civilization than global warming." 



 

Marriage rates in the country have declined by over 35% in the last decade, despite the government's substantial investment of over $200 billion in programs to support new mothers over the past 16 years. Despite these schemes, fertility rates have dropped by more than 25% during this period. 

Andrew Yeo, a senior fellow at the Brookings Institution's Center for East Asia Policy Studies, believes that the government must address "structural problems that aren't directly related to fertility." Moving forward, policymakers must prioritize a holistic approach to address societal and economic factors influencing family planning decisions, ensuring a sustainable future for the country.

MORE ON MARKET REALIST
The guest had no idea about the item being a Tiffany product and being embedded with a rare gem.
15 hours ago
The host was baffled by the goof up that the contestant made between two words.
16 hours ago
Carey showed that he has got the weapon of sarcasm, and he isn't afraid to use it.
17 hours ago
Whatever the host was expecting, it was far away from what the contestant said on national TV.
18 hours ago
The guest was surprised to learn more about the item he had actually found on the street for free.
20 hours ago
After going through everything on the board, the player left Harvey in hysterics with his answer.
1 day ago
As it so turned out, the weird-looking floor lamp was a piece from a very famous studio.
1 day ago
Most contestants were consistently getting the answers wrong, and Harvey was worried about what was next.
2 days ago
Some claimed that they got the puzzle despite English being their second language.
2 days ago
The letter was written to a columnist in response to a piece taking a swipe at Sinatra.
2 days ago
In a special episode of Celebrity Family Feud, a WWE star decided to go for the one thing Harvey is known for.
2 days ago
Luck was shining for her as she was off to a flying start and won the car with a single card.
2 days ago
Sajak had a witty reply for the contestant who was fanboying over White during the game.
5 days ago
The model said that considering White's age she would also take the offer from Sony.
5 days ago
Sheila won a brand new entertainment unit, complete with an HD plasma TV and mini bar from Howard Miller.
6 days ago
The appraiser disclosed that Yoakum began painting in the 1960s and he created one unique piece of art every single day.
6 days ago
The entrepreneur also managed to get the sharks to taste the vegan alternative meant for pets.
6 days ago
Throughout the game Monica tried to calm her nerves by placing her right hand over her chest.
7 days ago
Harvey later realized that the contestant had a crush on him and they had a moment.
7 days ago
The host had warned the men in advance to not risk their marriage for some points.
Mar 24, 2025