Booyoung offers cash rewards to tackle low birthrates
South Korean property and construction giant Booyoung Group is stepping up to combat the nation’s low birthrate, offering a combined 7 billion won (US$5.27 million) in cash incentives for employee babies born since 2021.
This move will see Booyoung offering 100 million won (US75,359) per child, demonstrating its commitment to supporting employees in starting and raising families.
“If Korea’s birthrate remains low, the country will face the crisis of extinction in 20 years,” Booyoung Group Chairman Lee Joong-keun said, speaking at the organisation’s New Year ceremony. “The low birthrate results from financial burdens and difficulties in balancing work and family life, so we decided to take such a drastic measure.”
The organisation is also promising to allow employees who are parents to more than three children to choose between 300 million won (US$226,078) and permanent rental housing sized below 85 square metres on the condition that the government provides land to build the homes.
This decision to set aside a large sum of money to encourage its employees to have children is the first of its kind for any organisation in South Korea, reported The Korea Times.
The organisation also called upon the South Korean government to place exemptions of donation taxes to encourage more couples to have babies.
This has been a welcome announcement to employees at Booyoung Group. “I was worried about financial difficulties from raising a child, but thanks to the organisation’s support, I’ve been able to consider having another baby,” said a Booyoung employee who gave birth last month.
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Industry officials expect other organisations in the construction industry might follow suit after Booyoung, due to the implications and consequences of low birthrates affecting workforce decline and demand for new housing.