The company announced that it will grant a substantial cash reward to its employees upon the birth of each child.
In an effort to address South Korea's plummeting birth rate crisis, the Booyoung Group, a prominent construction company based in Seoul, has unveiled a groundbreaking incentive scheme. The company announced that it will grant a substantial cash reward of 100 million Korean won (approximately $75,000 or ₹62,26,106) to its employees upon the birth of each child.
According to a CNN report, the initiative, outlined in a press release, underscores Booyoung Group's commitment to reversing the country's alarmingly low birth rates.
The company pledges to disburse a total of seven billion Korean won to employees who have welcomed a collective total of 70 babies since the initiative's launch in 2021.
Notably, this unprecedented benefit extends to both male and female employees. Chairman Lee Joong-keun expressed his aspirations for Booyoung Group to be recognised as a proactive entity fostering childbirth and alleviating concerns about the nation's future.
Detailing the rationale behind the initiative, Mr. Joong-keun emphasized the company's endeavor to alleviate the financial burdens associated with raising children by offering direct financial assistance. Employees blessed with three children are granted a special choice, opting between a lump sum of 300 million Korean won (approximately $225,000) or rental housing if the government provides land for construction.
Booyoung Group's initiative comes amidst South Korea grappling with alarmingly low fertility rates. Statistics from 2022 revealed that South Korea recorded the world's lowest fertility rate of 0.78, a figure projected to plummet further to 0.65 by 2025, according to Statistics Korea.
The country's birth rate has been in a downward spiral since 2015. By December 2023, projections suggested a potential decline to as low as 0.59 by 2026, marking population levels reminiscent of the 1970s.
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