In response to South Korea’s alarming low birth rate, Ssangbangwool, an underwear company, announced on Thursday its initiative to offer substantial financial incentives to its employees for having children.
The company revealed plans to provide a $22,400 bonus for the birth of the first and second child, and a $30,000 bonus for the third child, as reported by The Korea Herald.
A spokesperson for Ssangbangwool emphasized the societal importance of addressing the low birth rate, expressing the company’s commitment to actively contribute towards increasing the fertility rate in the country.
This announcement follows a similar move by Booyoung Group, a construction firm based in Seoul, which declared earlier this month its intention to grant a $75,000 per-child bonus to employees who become parents. CNN reported that the bonus extends to children born since 2021, with the company set to distribute a total of $5.25 million to its workforce, reflecting the birth of at least 70 children since then.
Notably, both men and women are eligible to receive these bonuses, aligning with efforts to promote gender equality in family planning incentives.
South Korea’s aging population and declining birth rate pose significant challenges, reminiscent of similar demographic concerns in China and Japan.
With a national fertility rate of 0.78 in 2022, and an even lower rate of 0.59 in Seoul, urgent measures are needed to sustain the country’s population, which requires a fertility rate of 2.1 to maintain its current level.
In response to the crisis, President Yoon Suk Yeol has directed his administration to develop tax incentives and subsidies for companies encouraging childbirth among their employees.
Furthermore, municipal authorities in Seoul are implementing measures such as providing $750 monthly allowances to parents until their children reach one year old, aiming to alleviate financial burdens associated with raising children and encourage higher birth rates.
