Seoul to offer incentives to companies supporting childbirth, child care

The Seoul Metropolitan Government announced on Monday that it will offer incentives to small and midsize companies that implement policies supporting employee childbirth and child care.

Seoul Mayor Oh Se-hoon, center, watches a performance at a festival celebrating multi-child families held at City Hall in downtown Seoul on May 25. [SEOUL METROPOLITAN GOVERNMENT]

The Seoul Metropolitan Government announced on Monday that it will offer incentives to small and midsize companies that implement policies supporting employee childbirth and child care.

According to the city government, a "point system" will be implemented where companies can accumulate points by providing support for employees related to childbirth and child care. These points will be converted into benefits, such as internship support to fill in for employees on parental leave.

The measures come in response to the disparity in parental leave usage based on company size. According to Statistics Korea, around 80 percent of mothers working in companies with 300 or more employees used maternal leave in 2022, while only 62.6 percent of those in companies with fewer than 50 workers did so.

Companies that create policies supporting work-life balance and child care are eligible to receive points. Examples of such policies include supporting employees to work-from-home and implementing a four-day workweek every other week, the city government said. Companies can earn 50 to 1,000 points per policy, and the accumulated points will be valid for use within two years.

Points will be awarded based on three criteria: establishing an environment where employees can comfortably use company-provided support for childbirth and child care, implementing the support and encouraging the father’s participation and supporting future generations.

To encourage participation, the city government will give 50 points to companies that attend a consulting session about the scheme. The Seoul mayor will also give an award to enterprises that collect 1,000 or more points.

The city government outlined 14 incentives that companies can spend points on, including internship support to cover employees on parental leave, financial subsidies for employees substituting for colleagues on such leaves and postponement of city tax audits. Companies can also receive support for promotions and benefits when signing contracts with public institutions.

The planned incentives may be amended and further developed after discussions with the central government, according to the Seoul city government.

Companies interested in the scheme can apply from June 20.

"Achieving a work-life balance and creating an environment supportive toward childbirth and child care in small- and medium-sized enterprises, where the majority of young people work, are key to overcoming low birthrates,” Seoul Mayor Oh Se-hoon said.

“We will continue to identify the incentives needed by companies so that everyone can enjoy a work culture that balances work and life, regardless of the size of the company.”

BY CHO JUNG-WOO [cho.jungwoo1@joongang.co.kr]