Booyoung Group’s Bold Baby Bonus Initiative

-SPECIAL REPORT-

Booyoung Group’s Bold Baby Bonus Initiative

In a striking move to combat South Korea’s plummeting birth rate, Lee Joong-keun, the billionaire founder and chairman of Booyoung Group, a major South Korean construction company, has launched a groundbreaking incentive program offering employees a $75,000 bonus for each child they have.

This initiative, which equates to 100 million Korean won per newborn, is part of a broader corporate effort to address the nation’s demographic crisis, which threatens to halve its workforce within the next 50 years.

Booyoung Group’s policy is not only generous but retroactive. Employees who had children before the policy was enacted are also eligible for the bonus. At a recent staff meeting, Lee Joong-keun emphasized the urgency of the situation, warning that continued low birth rates could lead to a national existential crisis, including a decline in defense manpower and economic vitality. He attributed the declining birth rate to financial burdens and the difficulty of balancing work and family life, stating that such drastic measures were necessary to reverse the trend.

Since 2021, Booyoung employees have collectively had 70 babies, and the company has already distributed a total of 7 billion Korean won (approximately $5.25 million) in bonuses.

The initiative extends beyond cash incentives: if land is provided by the government, employees with three or more children may choose between receiving the equivalent of three childbirth bonuses or living in a public-housing-style rental home, free from tenant tax and maintenance responsibilities. This benefit is available to both male and female employees across Booyoung’s 2,500-strong workforce.

Booyoung Group is also easing the financial burden of parenting through additional support, including college tuition assistance for employees’ children, coverage of medical expenses for direct family members, and child allowances. 

Lee Joong-keun has proposed that the government implement a new tax deduction system to waive corporate and income taxes, allowing employees to fully benefit from these incentives and encouraging other companies to adopt similar policies.

South Korea’s government has previously introduced measures such as subsidized housing for newlyweds, discounted postpartum care, and a “baby payment” of $2,250 per newborn.

However, these efforts have not significantly improved the country’s fertility rate, which dropped to 0.78 in 2022 and is projected to fall further to 0.65 by 2025. Experts suggest a rate of 2.1 is necessary to maintain a stable population without migration.

While other corporate giants like Samsung, LG, and Hyundai have implemented family-friendly perks such as onsite daycare and extended parental leave, Booyoung Group stands out as the first to offer substantial cash support for every newborn.

This bold initiative reflects Lee Joong-keun’s personal commitment to social welfare, which has previously included distributing over $100 million in cash to residents of his hometown and alumni of his local school.

Despite his philanthropic reputation, Lee’s career has been marred by legal troubles, including convictions for tax evasion and embezzlement. He was released on parole in 2021 and is currently barred from leading Booyoung until early 2027.

This policy marks a significant moment in South Korea’s corporate response to its demographic challenges, positioning Booyoung Group as a pioneer in incentivizing family growth through financial empowerment.