South Korea Company Offers $75,000 Bonus to Encourage Workers to Have Babies and Support the Country

South Korea Company Offers $75,000 Bonus to Encourage Workers to Have Babies: Booyoung, a South Korean construction company, will reward its workers with $75,000 for each child they have as an incentive to increase their families.

South Korea might face extinction if its birth rate remains low, according to Booyoung founder Lee Joong-keun.

The South Korean fertility rate was 0.78 in 2022, 0.72 in 2023, and 0.68 this year. To maintain a stable population, the Organisation for Economic Co-operation and Development (OECD) requires a rate of 2.1.

South Korea's birth rate reached a new record low in 2023, despite significant investments in pro-natal policies.

Among OECD members, South Korea has the lowest fertility rate since 2018, with women giving birth at an average age of 33.6, the highest.

South Korea's population could nearly halve by 2100 without a reversal in the low birth rate.

What is causing the South Korean birth rate to decline?

High childcare costs, property prices, job insecurity, and the demanding education system are major obstacles to having a larger family, despite financial incentives.

The challenges working mothers face balancing career and household responsibilities are also contributing factors to the declining birth rate.

Marriage rates in South Korea have declined due to the high cost of living.

A total of 360 trillion won ($270 billion) has been invested in various programs designed to encourage couples to have more children, including financial incentives, childcare services, and infertility treatments.

President Yoon Suk Yeol has pledged to take "extraordinary measures" to combat the falling birth rate during his current administration.

The government of South Korea faces significant fiscal challenges despite its rapidly aging population. According to the Korean Institute of Health and Social Affairs, the working-age population is expected to shrink by nearly 35 percent during the next 25 years, resulting in a 28 percent drop in gross domestic product (GDP) compared to its 2022 levels.

According to reports, the population of those over 65 will reach 25,5 percent by 2030 and 46,4 percent by 2070. There 40.4% of South Koreans over 65 experience relative poverty, the highest among developed nations. Meanwhile, forecasts suggest that the pension fund will run out in just over three decades.

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