South Korea’s birth rate crisis has been a concern for years, with political decision makers and companies actively searching for solutions to improve it. Booioung Group, a South Korean construction specialist, implemented an innovative approach by offering a bonus of almost 70,000 euros for every baby born by an employee. This initiative aims to address the population crisis that threatens South Korea’s future.
As parliamentary elections in South Korea loom, candidates are proposing new incentives to encourage potential parents to have children. These proposals include housing benefits, tax credits, mandatory parental leave and subsidies for egg freezing programs. The declining birth rate not only poses a threat to South Korea’s population but also has social implications such as reduced personnel in the defense forces and lower student enrollments in universities.
South Korean companies recognize the importance of addressing fertility issues. By improving corporate culture and work-life balance, companies like Lotte have successfully increased the fertility rate among their employees. Lotte offers mandatory maternity and parental leave to employees, contributing to its higher birth rate. This proactive approach is vital in solving the population crisis and ensuring a sustainable future for South Korea.
In contrast, Finland has a fertility rate of 1.32, highlighting the significant difference between the two countries. South Korea’s total fertility rate has fallen to 0.71, well below the replacement rate of 2.1 children per woman estimated by the OECD. The seriousness of the situation is further emphasized by last year’s sale of more pet strollers than baby strollers in South Korea, indicating urgent action is needed to address its low birth rate and prevent further population decline.