By M10News Asia Desk | Seoul | October 17, 2025
Massive Cash Incentive for New Parents
South Korea’s construction giant Booyoung Group is offering employees 100 million Korean won ($75,000) for each child born. The company is even backdating payments for those who had children before the policy was introduced, aiming to combat the nation’s declining fertility rate.
Founder Highlights National Crisis
Founder and chairman Lee Joong-keun said at a staff meeting that if low birth rates continue, South Korea could face a “national existential crisis”, including a shrinking workforce and insufficient defence manpower.
“The low birth rate results from financial burdens and difficulties in balancing work and family life, so we decided to take such a drastic measure,” he added.
Support for Large Families
Employees with three or more children can choose either a childbirth incentive for three newborns or a public-housing-style rental home, with no tenant tax or maintenance responsibilities. The program applies to both male and female staff across Booyoung’s 2,500-strong workforce. The company spokesperson confirmed to CNN.
Additional Family Benefits
Booyoung Group also helps employees with college tuition for their children, medical expenses for direct family members, and ongoing child allowances, reducing the financial burden of raising a family.
Call for Government Support
Joong-keun has proposed that the government introduce tax deductions to allow employees to receive the full benefit of the parenting incentives and to encourage other companies to implement similar programs.
A National Fertility Crisis
South Korea has the lowest fertility rate in the world, with only 0.78 babies per woman, projected to fall to 0.65 by 2025. Experts warn that a rate of 2.1 is required for population stability without immigration.
Government Incentives Not Enough
The government already offers housing subsidies for newlyweds, discounted postpartum care, and a baby payment of $2,250 for each newborn, but these measures have not reversed the declining population trend.
Corporate Response
Other major South Korean companies, including Samsung, LG, and Hyundai, have introduced family-friendly perks, such as on-site daycare, fertility support, and parental leave. Booyoung Group is unique in offering direct cash payments for each newborn.
Impact on Employees
The incentive allows employees to plan for children without fear of financial strain, providing stability for both families and the workforce. Joong-keun believes this could influence corporate culture nationwide.
Founder’s Philanthropy
Lee Joong-keun has a history of giving back. Last year, he donated over $100 million to his hometown residents and local school alumni, reflecting his commitment to social welfare and community support.
Legal Controversies
Joong-keun’s past includes legal troubles. In 2004, he was charged with tax evasion and embezzlement, and again in 2018. He was released on parole in 2021 and is barred from leading Booyoung until 2027.
Rags-to-Riches Background
Growing up in poverty in Unpyeong-ri, Joong-keun later transformed into a real estate and construction mogul, credited with introducing rental housing in South Korea. His personal story has informed his focus on employee welfare and housing incentives.
Focus on Workforce Retention
The baby bonus is also a strategic move to retain skilled employees amid South Korea’s shrinking workforce, ensuring long-term productivity for the company.
Addressing Cultural Barriers
The initiative is designed to overcome social and workplace challenges that discourage young couples from having children, such as high living costs and long working hours.
Public Reaction
The announcement has been met with both praise and scepticism, with some applauding the support for families while others question whether corporate cash incentives can address deep-rooted demographic trends.
Economic Implications
By incentivising childbirth, Booyoung Group aims to stabilise population growth, which is critical for economic sustainability, the labour market, and national security.
Comparison With Other Countries
Globally, countries like Japan and Singapore offer various incentives to boost fertility, but Booyoung Group’s approach is among the most generous corporate-led initiatives for newborns.
Broader Social Impact
Beyond financial relief, the program may reshape attitudes toward family life in South Korea, encouraging a more balanced approach to work-life integration.
Looking Ahead
Experts suggest that corporate initiatives like Booyoung’s may prompt government reform, leading to expanded family benefits nationwide.
Conclusion
South Korea’s demographic challenges are severe, but programs like Booyoung Group’s $75,000 baby bonus represent a bold experiment in reversing declining birth rates, combining financial support with social awareness to secure the country’s future.
Editing by M10News Asia Desk | Contact: asia@m10news.com
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