Korean companies join efforts to raise low birthrate

HanmiGlobal Co. logo [Courtesy of HanmiGlobal]

South Korean companies are taking an active part in the efforts to raise the country’s birthrate that remains alarmingly low by offering a family-friendly working environment for employees and longer paid leaves among others.

HanmiGlobal Co., a Korean construction management service provider, on Thursday announced an improved welfare system to create a family-friendly working environment and to encourage childbirth to employees. Under the new system, HanmiGlobal will immediately give a special promotion to employees that give birth to a third child, regardless of the promotion period and performance.

“A department head, for example, will be promoted to an executive if a third child is born in the family,” said an unnamed official from HanmiGlobal.

The company will support childcare for one year for families that see a fourth child.

Employees that deliver a child will be given 30 more days of paid maternity leave, in addition to the 90 days of legal leave. They will receive the same monthly salary as before for three months while on childcare leave.

HanmiGlobal also overhauled the personnel system so that employees that go on childcare leave are not isolated from promotions. It will recognize up to two years of childcare leave as their service years.

When it comes to new employee recruitment, candidates with children will be given extra points in the screening procedure.

Employees with children eight years of age and under will be able to work remotely for two years.

HanmiGlobal will also put out efforts to encourage marriage by providing housing loans. Employees tying the knot will be able to receive up to 100 million won ($77,153) in loans - 50 million won free of interest and 50 million won at a low 2 percent annual rate.

HanmiGlobal’s move comes as Korea’s fertility rate is the lowest in the world. The government spent 280 trillion won to respond to the low birthrate issue over the past 16 years but the impact has been limited.

[Photo by Yonhap]

Other top companies are joining in the efforts to encourage employees to give birth as they are aware that this allows them to secure an outstanding workforce.

Samsung Electronics Co. allows up to 20 days of paternity leave for employees of multiple birth such as twins. As for childcare leave, employees can stay home for up to two years per child if their children are aged 12 and under.

LG Electronics Inc. also allows employees up to two years of childcare leave if they have children aged eight and under. About 500~600 employees are known to be going on childcare leave every year.

SK hynix Inc. offers employees cash when they give birth - 300,000 won for the first child, 500,000 won for the second, and 1 million won for the third.

GS Caltex Corp. offers 1.5 million won in cash to employees for the first child, 2 million won for the second and 2.5 million won for the third. The company also pays them 1~2 million won each when children join elementary, middle and high school.

Hyundai Motor Co. has recently expanded the size of its corporate daycare center inside the headquarters in Seoul, by 44 percent to 1,520 square meters from 1,054 square meters.

POSCO introduced the country’s first corporate system that allows employees to work remotely if they have children aged eight and under. They can choose to work all day, or 8 hours from home, or half a day or four hours.

Companies are also upping infertility welfare.

Samsung Electronics introduced an infertility leave in 2013, allowing employees up to one year of leave that can be broken down to three periods.

LG Electronics has also been offering employees up to three days of paid infertility treatment leave since 2020.