South Korea has been plunged into one of the worse demographic crises of the world, with a fertility rate that reached a historical minimum of 0.72 children per woman In 2023, one of the lowest in the world. This figure is far from the population replacement level, located in 2.1 children per womanand evidences a rapid population aging which complicates the country’s economic and social sustainability.
This demographic emergency It has been defined by President Yoon Suk Yeol as a “national emergency” in the face of the risk of decreasing productivity and deteriorating the fiscal health of the State. According The published by Bloombergin the face of such demographic and economic challenge, the companies of the country have brought their shoulders offering generous “baby checks” to those employees who decide to have children.
Decades fighting low birth. The South Korean government has been implementing decades The most varied policies to encourage birth, destined to Relieve the economic burden of families. These include direct children’s subsidies, housing aids, paid paternity permitsfacilities for access to child care and early education.
However, despite these measures and mass investment in public initiatives, the birth rate in Korea has only achieved A very modest reboundwhich has led to the authorities to consider additional reforms and to promote the private sector participation In approaching the problem.
Aminar to have children from your pocket. Given the growing concern about the impact that the population decrease will have on available labor, important South Korean business conglomerates decided to act on their own. According to published Bloombergcompanies such as Booyoung offer economic bonds of up to $ 72,000 (100 million wones) for each child born, and some even apply a custom retroactive effect to facilitate parenting. It is not the only one, The local press He ensures that other companies have also implemented bonus plans and additional benefits for those employees who expand their family.
“I was spent. So, after Hong and his wife, who also works in Booyoung, processing the news, did what many would do if they were offered a fortune to expand the family: they had another son to get the bonus for their birth.
This is the economy of Korea. The economic incentives that Korean companies are offering do not start from an altruistic or patriotic commitment. But companies have become aware of the serious demographic crisis and, Therefore workwhich must face in the coming years. South Korea looks in the mirror of other countries with serious demographic problems such as Japan and the image is that of a aged labor market in which labor shortage It has been generalized. It is estimated that by 2050, the population of 65 years or more will amount to 40%, potentially the largest proportion of any country in the world.
On the other hand, the companies that offer these incentives have become those preferred by professionals who want to form a family, so they ensure the attraction and retention of better qualified professionals, who are going to prefer a company that offers Family conciliation benefits.
An encouraging rebound in birth. Such and as he collected Reutersthe set of Stimulus measures implemented by the Government with the Private sector support begins to show its first effects with A slight increase In the birth rate.
After almost a decade of constant falls, the fertility rate in South Korea rose to 0.75 children per woman in 2024, marking A change of trend descendant and marks a first significant advance in many years to reverse the historical. However, they warn that cultural and social transformation necessary to sustain more significant increases will take time.
Image | Unspash (Laura Lee Moreau)
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