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Korean Construction Company Offers $75,000 Incentive For Babies

Family & Relationship

Korean Construction Company Offers $75,000 Incentive For Babies

Amid South Korea’s continuous battle with one of the lowest birth rates in the world, a construction company from Korea has made a daring move to address the problem directly.

Foot of newborn baby on warm blanket: source: IstockPhoto

Under the direction of founder Joong-keun Lee, Booyoung Group has launched a ground-breaking program to incentivize its staff to become parents by providing large monetary prizes after giving birth.

Employees who give birth to a child receive 100 million Korean Won ($75,000) under the company’s creative initiative, which has already generated significant attention.

The corporation has reportedly distributed an astounding $75,000 since 2021, with two families most recently receiving $145,488.59 (one hundred forty-five thousand four hundred eighty-eight us dollars 59 cents) each for having two children, according to a Korean Times story.

“If Korea’s birth rate remains low, the country will face the crisis of extinction in 20 years,” Booyoung Group Chairman Lee Joong-keun said at the company’s New Year ceremony on Monday, February 5.

“The low birthrate results from financial burdens and difficulties in balancing work and family life, so we decided to take such a drastic measure.”

With only 0.7 births per fertile woman, South Korea now has the lowest fertility rate in the world.

Experts from Korea point to several causes for the country’s falling birth rate, such as changing cultural standards, the high expense of having children, and men’s low involvement in childrearing.

The difficulties of making plans in a competitive and unpredictable environment were emphasized by Insill Yi, President of the Korean Peninsula Population Institute for Future.

According to analysts, Booyoung Group’s plan marks a substantial divergence from traditional approaches to combating population decrease, and more businesses are likely to follow suit in the future.

Newborn boy sleeping in his hospital bed

Employees’ decisions on family planning have already been significantly impacted by the incentives offered by the building company; many have chosen to postpone starting a family.

“I was worried about financial difficulties from raising a child, but thanks to the company’s support, I’ve been able to consider having another baby,” said a Booyoung employee who gave birth last month.

Although the program has received recognition for its creative strategy, experts warn that a one-time payment alone won’t address the root causes of the low birth rate.

They emphasize how critical it is to address systemic issues like gender equality in childcare obligations and workplace culture.

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