Korean firms fall short in response to population crisis

[Photo by Lee Chung-woo]

A sizable number of South Korean companies are failing to adequately respond to the country’s demographic decline, according to a new study.

The findings were published Sunday in a survey conducted by the Maeil Business Newspaper and the Korean Peninsula Population Institute for Future, a research center for demographic research, as the first-ever assessment results of environment, population, and governance (EPG) among 300 Korean companies with assets of one trillion won ($738 million) or more.

The average EPG score stood at 55.5 out of 100, with the highest at 85.3 and the lowest at 16.2. Samsung Electro-Mechanics Co. ranked first with 85.3, followed by LOTTE Fine Chemical Co., Shinhan Card Co., and KT&G Corp.

The survey revealed a lack of preparation for demographic issues among most of the companies surveyed. Paid paternity leave was mandatory in a mere 15 companies, or 5 percent, while only 27 companies had organized programs to support employees after maternity or paternity leave.

“As new roles such as Chief Digital Officer (CDO) and Chief Artificial Intelligence Officer (CAIO) have emerged in response to a fast-changing world, we should consider establishing a Chief Population Officer (CPO) and creating a department dedicated to addressing the population crisis,” Lee In-sil, a director at the research institute, suggested.