Korean Company Will Pay Employees 100 Million Won For Each Child Born After 2021
Booyoung Group in South Korea is offering employees 100 million won (S$101,000) for each child born after 2021.
The company CEO said this is in a bid to help raise the country’s low birth rate, which he fears will lead to “a crisis of national existence in 20 years” if it doesn’t improve.
Employees are also entitled to welfare including medical expenses for immediate family members and paid college tuition for their children.
Booyoung Group to pay employees for each child born after 2021 to boost birth rate
Booyoung Group Chairman Lee Joong-keun said during a meeting on Monday (5 Feb) that the company will provide 100 million won (S$101,000) to employees for each child born after 2021.
Source: Yonhap via The Korea Times
According to The Korea Times, 70 people are eligible for this, which adds up to a total amount of 7 billion won (S$7.08 million).
Mr Lee, 84, confirmed that the company will continue with the policy in future.
He added, per a report by The Kyunghyang Shinmun: “If land is provided by the government, we will allow families of executives and employees who give birth to three children to choose between childbirth incentives for three babies or a permanent rental house.”
Mr Lee warned that the country will face “a crisis of national existence in 20 years” should the birth rate continue to decline at its current rate.
“The economic burden of raising children and the difficulty of balancing work and family life are major reasons for the low birthrate, so we have introduced the unconventional incentive program,” he explained.
Source: Starcevic from Getty Images Signature on Canva
One employee who gave birth in January was effusive about the policy.
She said that she had concerns about the financial challenges of raising a child, but thanks to Booyoung Group and its support, she can even plan to have a second one.
The company, which deals in rental housing, also has a welfare programme that provides college tuition for employees’ children.
It also covers medical expenses for immediate family members.
Other plans to increase birth rate include permanent rental housing
An official from Booyoung commented that Mr Lee is concurrently the president of the Republic of Korea Air Force Internet Society, the Korea JoongAng Daily reported.
The official shared that Mr Lee has “deep concerns” about the declining birthrate in South Korea as this would directly impact defence manpower.
Source: Yonhap via The Kyunghyang Shinmun
He noted that to maintain current military levels, it would require an annual intake of 200,000 individuals.
However, there were only 250,000 newborns in 2022.
There are also plans to provide permanent rental housing for employees with three or more children.
In addition, Mr Lee suggested a tax-free donation system for childbirth incentives.
This would make the donations tax-exempt and donors can receive tax deductions “for both income and corporate taxes equivalent to the donated sum”.
If an individual or corporation donates up to 100 million won within three years to a baby born after 1 Jan 2021, the amount of support will be tax-free.
The donor will also receive an income and corporate tax credit for the amount of the donation, he proposed.
Government offers Baby Bonus in Singapore
Here in Singapore, the Ministry of Social and Family Development has offered the Baby Bonus scheme.
Couples with newborn children are eligible for a cash gift as well as a co-savings account, named the Child Development Account (CDA).
The government includes various grants if families deposit money into the CDA and when they first open the account.
CDA funds can be used to pay for school fees at childcare centres, kindergartens, special education schools, and early intervention programmes.
They can be used for medical expenses too.
The government also offers paid leave schemes, including childcare leave, maternity leave, and paternity leave.
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Featured image adapted from Yonhap via The Kyunghyang Shinmun.
