Boosting Fertility Rates in South Korea: Government and Businesses Join Forces

The low birth rate in South Korea has been a cause of concern for many years. The country’s construction specialist, Booyoung Group, has introduced a unique incentive to improve the birth rate by offering a bonus of almost 70,000 euros for each baby an employee has. This move comes as political decision-makers and businesses have been introducing various incentives to address the population crisis.

The upcoming parliamentary elections have prompted candidates to propose new solutions to the declining fertility rate, including housing allowances, tax breaks, and mandatory paternity leave. The declining birth rate is having significant demographic shifts in the country, such as a decrease in the number of personnel in the South Korean Defense Forces and declining student numbers in universities.

The total fertility rate in South Korea fell to 0.71 last year, which is well below the replacement rate of 2.1 children per woman. In comparison, Finland’s fertility rate was 1.32 in 2022. Companies are taking steps to address the fertility crisis by improving work-life balance and introducing mandatory maternity and paternity leave policies. For example, Lotte retail chain has seen an increase in its employees’ fertility rates since implementing such policies in 2012.

Overall, addressing the declining birth rate requires collaborative efforts from both government and businesses. By implementing incentives and policies that support working parents, there is hope that the fertility rate can be improved and mitigate the population crisis caused by it.