Following Booyoung, Krafton to Offer 100 Mil. Won Childbirth Incentive to Employees

In a bold move to address South Korea's declining birth rate, Booyoung Group has announced a generous childbirth incentive, providing 100 million won to each employee who has a child. This initiative, which has already benefited 70 employees between 2021 and 2023, aims to encourage more births within the company. The cumulative amount distributed so far reaches 9.8 billion won, with the number of children born to employees increasing from an average of 23 annually to 28 this year. Booyoung Group plans to continue this incentive until the national total fertility rate reaches 1.5.

Booyoung Group Chairman Lee Joong-geun expressed his hopes for the initiative, stating, "I hope Booyoung serves as a catalyst, similar to the National Debt Redemption Movement and the gold collection campaign, and that many companies voluntarily support childbirth, creating a butterfly effect." This sentiment reflects a broader corporate social responsibility trend in South Korea, where companies are increasingly engaging in activities that address pressing social issues, such as the country's low birth rate.

Following Booyoung Group's announcement, Krafton, a leading domestic gaming company, has also decided to implement a childbirth incentive program. Krafton's policy includes a lump sum of 60 million won for employees who give birth, followed by an annual payment of 5 million won over eight years, totaling 100 million won. This initiative is reportedly led by Krafton founder Jang Byung-gyu, who has a history of involvement in national policy as the former chairman of the Fourth Industrial Revolution Committee.

Krafton's decision to offer such substantial incentives is supported by its strong financial performance. Last year, the company recorded a revenue of 2.7098 trillion won and an operating profit of 1.1825 trillion won, marking its highest performance since establishment. This financial success, driven by popular gaming titles like "PUBG," has enabled Krafton to invest in creating a work-family balance environment, a move that aligns with the growing demand for family-friendly workplace policies in South Korea.

The introduction of childbirth incentives by Booyoung Group and Krafton is part of a larger effort to combat South Korea's demographic challenges. With one of the lowest birth rates in the world, the country faces potential future labor shortages and economic stagnation. Both government and corporate initiatives are crucial in addressing these issues, and the actions of Booyoung Group and Krafton are seen as significant contributions to this national effort.

As these companies lead the way, it remains to be seen whether other corporations will follow suit and implement similar policies. The potential for a "butterfly effect," as Chairman Lee hopes, could lead to a broader cultural shift towards supporting family growth and work-life balance in South Korea.