A South Korean construction company is offering huge bonuses to its staff if they have children in an effort to correct the country’s abysmal birthrate.
New parents working at Booyoung, a private construction group that specialises in rental properties, can receive 100million KRW, or won, per birth – equivalent to £59,434. It is part of a nationwide effort to boost ailing birthrates as the company’s chairman warns the country “will face the crisis of extinction in 20 years”.
The company also vowed to allow workers with more than three children to choose between 300million won and permanent rental housing sized below 85 square metres. This will be done on the condition that the government provides the land to build the new homes.
Booyoung Group Chairman Lee Joong-keun said at the company’s New Year ceremony on Monday: “If Korea’s birthrate remains low, the country will face the crisis of extinction in 20 years.
“The low birthrate results from financial burdens and difficulties in balancing work and family life, so we decided to take such a drastic measure.”
In 2023, South Korea once again recorded the lowest fertility rate in the world in 2022, with an average of 0.79 children per woman – a record. The country is even the only one in the world to have a fertility rate below 1.
It is the first time a Korean company has offered to pay such a significant sum to encourage its workers to have children.
Booyoung has also asked the government to exempt taxes on donations to help raise the birthrate.
One employee at the firm who had a child last month told the Korean Times: “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.”
To launch the operation, the company director has already paid this bonus to 70 employees who have had a child since 2021.
Booyoung also asked the government to exempt taxes on donations to help raise the birthrate.
Other contruction firms are expected to follow suit. The issue of birthrate represents a significant problem for these companies due to both declines in the available workforce and falling demand for housing.
Nearby countries, including Japan and China, are following a similar trend. A country must have a fertility rate of at least 2.1 to ensure the stability of its population without having to rely on immigration.
