Korean gov’t mulls tax benefits for family-friendly companies

[Courtesy of The Presidential Committee on Ageing Society and Population Policy]

The South Korean government is considering expanding tax incentives for family-friendly companies as it engages in efforts to tackle the country’s chronic low birth rate.

Maeil Business Newspaper has learned on Monday that the Presidential Committee on Ageing Society and Population Policy, which oversees the country’s birth rate policies, will hold a public-private consultative meeting on Tuesday to discuss measures to improve the government’s certification and reward system for family-friendly and work-family compatible companies.

The Family-Friendly Company certification, granted by the Ministry of Gender Equality and Family, acknowledges companies and public organizations that exemplify best practices in fostering a family-friendly culture and policies, including support for childbirth and childcare and implementing flexible work systems.

A total of 5,911 companies have been certified since the system was introduced in 2008.

“We are considering ways to clarify the criteria for various certification systems, including Family-Friendly Company certification, to enhance policy effectiveness and increase benefits perceived by companies to encourage their participation,” said a senior official from the committee.

Various tax benefits are being considered for the new reward.

The family ministry already presented its opinion to the committee to the effect that tax benefits such as corporate tax reductions will increase companies‘ willingness to apply for certification.

The Mid-and Long-Term Strategy Committee, an advisory committee to the Ministry of Economy and Finance, meanwhile, held a future strategy forum on Monday and proposed measures to increase the country’s working-age population and boost its productivity by using foreign labor as a way to overcome the population crisis in the country.