South Korea has the lowest birth rate in the world, and the country’s companies are aware of their role in addressing this population crisis. Various incentives have been introduced by political decision-makers and businesses to improve the birth rate, with one unique incentive coming from the South Korean construction specialist Booyoung Group. They offer a bonus of almost 70,000 euros for each baby an employee has.
The population crisis in South Korea has been a cause of concern for years, with the fertility rate steadily declining. The upcoming parliamentary elections have prompted many candidates to propose new incentives for potential parents, including housing allowances, tax breaks, and mandatory paternity leave. As a result of the declining birth rate, the country is experiencing significant demographic shifts, 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, well below the replacement rate of 2.1 children per woman. In comparison, Finland’s fertility rate was 1.32 in 2022. South Korean companies are taking steps to address the fertility crisis by improving work-life balance and introducing mandatory maternity and paternity leave policies. For example, the retail chain Lotte has seen an increase in the fertility rate of its employees since implementing such policies in 2012.
Overall, the declining birth rate in South Korea is a pressing issue that requires collaborative efforts from both the government and businesses to address. By implementing incentives and policies that support working parents, there is hope that the fertility rate can be improved and the population crisis mitigated.