Billionaire boss of South Korean construction giant is encouraging his workers to have children with a $75,000 bonus

-SEB EDITORIAL-

A Billionaire’s Bold Bet on Babies: South Korea’s Fertility Crisis Meets Corporate Incentive

In a striking move that blends corporate benevolence with national urgency, Lee Joong-keun, the billionaire founder and chairman of South Korea’s Booyoung Group, has launched a radical initiative to combat the country’s plummeting birth rate.

The Seoul-based construction giant is offering a staggering 100 million Korean won, approximately $75,000, to each employee who has a child. This incentive, unprecedented in scale and scope, is part of a broader effort to reverse demographic trends that threaten South Korea’s economic and social stability.

The policy is retroactive, meaning employees who had children before its implementation are also eligible for the bonus. Booyoung Group has already distributed 7 billion won (around $5.25 million) to employees who collectively welcomed 70 babies since 2021. 

Lee Joong-keun, speaking at a company meeting, emphasized the existential threat posed by the country’s declining fertility rate, which dropped to a world-low of 0.78 in 2022 and is projected to fall further to 0.65 by 2025. With a replacement rate of 2.1 needed to maintain population stability, South Korea faces the grim prospect of halving its workforce within five decades.

Lee’s initiative goes beyond cash bonuses. He has proposed providing rent-free housing for employees with three or more children, contingent on government land availability. The housing would resemble public rental models, with no tenant tax burden or maintenance responsibilities. The benefits are available to both male and female employees across Booyoung’s 2,500-strong workforce, signaling a progressive approach to gender equity in family planning support.

Booyoung Group is not alone in recognizing the urgency of the situation. Other corporate giants like Samsung, LG, and Hyundai have introduced family-friendly policies, including onsite daycare, fertility treatments, and extended parental leave.

However, Booyoung stands out as the first to offer substantial cash incentives for childbirth, a move hailed by Korea JoongAng Daily as groundbreaking.

Lee Joong-keun’s philanthropic streak is well documented. In 2024, he donated over $100 million to residents of his hometown and alumni of its local school, citing gratitude for their support during his three-year imprisonment for tax evasion and embezzlement.

Despite his criminal record, which bars him from leading Booyoung until 2027, Lee continues to influence the company’s direction through bold social initiatives.

His latest proposal includes lobbying the government for tax reforms that would allow companies to offer parenting incentives without financial penalties. By waiving corporate and income taxes on such benefits, Lee hopes to encourage more firms to follow Booyoung’s lead.

South Korea’s government has tried various measures to boost birth rates, including housing subsidies for newlyweds and a “baby payment” of $2,250 per newborn. Yet these efforts have fallen short.

Lee’s dramatic intervention may signal a new era of corporate responsibility in addressing demographic decline, a challenge that no longer belongs solely to policymakers but to the private sector as well.

In a nation where economic pressures and work-life imbalance deter young couples from starting families, Booyoung’s $75,000 baby bonus is more than a perk, it’s a provocative statement.

Whether it sparks a broader movement or remains a singular gesture, it underscores the growing role of business in shaping the future of society.