South Korean conglomerates intensify efforts to support working parents

In response to South Korea’s plunging fertility rates, major organisations such as Samsung, Hyundai Motor, LG, and POSCO have ramped up initiatives to provide better working environments for employees balancing work and parenting responsibilities.

This move comes as South Korea witnessed a record-low total fertility rate last year. Statistics Korea revealed that in Q4’2023, the country’s total fertility rate dropped to 0.65, marking the lowest ever recorded. The annual rate for 2023 stood at 0.72, a decline of 0.06 from the previous year.

To address this demographic challenge, major South Korean conglomerates have been expanding their employee welfare programmes beyond just parental leave or scholarships, encompassing the entire spectrum of childcare support from pregnancy to raising children.

Samsung Electronics, for instance, announced the expansion of its daycare centre at Samsung Digital City in Suwon, Gyeonggi Province. The facility, now capable of accommodating 300 children, represents the largest of its kind at a single business site in South Korea, with a total capacity of 1,200 children at the Suwon campus. 

Meanwhile, POSCO Group has been operating daycare centres since 2020 in Gwangyang and Pohang, catering not only to its employees but also to those from partner organisations. The group’s welfare programme, which now includes English classes conducted by native speakers, aims to enhance children’s experiences while providing essential support to working parents.

READ MORE: South Korean firm pioneers 24/7 childcare to boost employee retention

LG’s approach involves flexible work arrangements for employees with children up to the sixth grade. This allows them to choose their working hours and combine office work with remote work options. The organisation additionally provides incentives for employees utilising parental leave.

Hyundai Motor became the first major conglomerate to establish a joint task force with its labour union in 2023. This collaborative effort focuses on developing comprehensive solutions to support employees with childcare needs and address the low birthrate issues, reported The Korea Times.