Booyoung Group decided to pay a combined 7 billion won ($5.25 million) in cash for 70 babies born to its employees after 2021, to contribute to the nation’s efforts to tackle low birthrates, the construction firm said Monday.
With a plan to continue offering its employees 100 million won per birth, the company also vowed to allow workers with more than three children to choose between 300 million won and permanent rental housing sized below 85 square meters, if the government provides land to build the homes.
“If Korea’s birthrate 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, Monday. “The low birthrate results from financial burdens and difficulties in balancing work and family life, so we decided to take such a drastic measure.”
This is the first time for a Korean company to pay such a large amount of money to encourage its employees to have children.
Booyoung also asked the government to exempt taxes on donations to help raise the birthrate.
“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.
Industry officials expect other construction firms may follow suit after Booyoung, given that low birthrates can have a negative impact on them, due to declines in the workforce and demand for new housing.
