Korean Company’s 'Non-Marriage Welfare' Draws Attention in Japan... Praised as "Likely to Increase Births Among Married Couples"

"Married individuals reluctant to have children due to colleague pressure"
"Expanding welfare for singles will reduce social stigma"
Low birthrate causes cited as "housing prices, costs, feminism"

Japan shows great interest in South Korea's severe low birthrate situation. In particular, Japanese media analyzed that "increasing welfare for unmarried individuals will also result in encouraging childbirth among married people," referring to South Korean companies strengthening welfare for unmarried employees.

'Encouraging Unmarried?' or 'Expecting a Trickle-Down Effect'

On the 26th, Nihon Keizai Shimbun reported, "Some South Korean companies are rapidly changing by providing the same benefits to unmarried employees as to married employees."

The newspaper stated, "South Korean companies have implemented systems that provide marriage support funds to those planning to marry and educational expenses such as university tuition to employees with children," but "this has had the adverse effect of creating a real wage gap between unmarried employees and others."

It further analyzed, "Companies that introduced support for unmarried employees responded to social demands to improve this 'welfare discrimination in the workplace.'"

Providing benefits to unmarried employees may at first glance seem to encourage the low birthrate situation. However, Nihon Keizai Shimbun noted, "Surprisingly, there appear to be almost no critical opinions within companies," and "some experts say that support for unmarried individuals can indirectly support childbirth among married employees."

Professor Shin Kyung-ah of Hallym University’s Department of Sociology told the newspaper, "Working women often hesitate to have a second child because they worry about burdening their colleagues," and analyzed, "If welfare for unmarried employees expands, married employees may feel freer from the scrutiny of their superiors and colleagues."

Rise of Feminism... Impact on Women's Choice to Remain Unmarried

The newspaper cited increased marriage costs and psychological burdens of childbirth and child-rearing as reasons why young South Koreans do not marry.

It especially pointed out the difficulty of securing housing funds, stating, "South Korea’s housing rental system requires a large deposit upfront," and "with skyrocketing housing prices in the metropolitan area, newlyweds find it difficult to find suitable homes."

The rise of feminism around 2016 was also identified as a factor influencing women’s choice to remain unmarried. The newspaper explained, "While the 'Me Too movement' against sexual harassment and assault became active, dissatisfaction among men subject to mandatory military service also began to grow."

According to Statistics Korea, the number of marriages last year was 191,697, the lowest since the first statistics were compiled in 1970. This is presumed to be due to changes in traditional views on marriage.

According to the 2022 'Survey on the Consciousness and Values of Koreans' by the Ministry of Culture, Sports and Tourism, only 17.6% said "marriage is absolutely necessary." This is a decrease of 9.1% from 26.7% in 2016.

Companies Establish and Expand Support for Unmarried Employees

[Image source=Pixabay]

Meanwhile, NH Investment & Securities has implemented a system since July 2021 that provides 100% of the basic amount, such as a marriage congratulatory gift, to unmarried employees over 45 years old upon request. KB Securities similarly provides 1 million won to unmarried employees over 40 years old. They explained this is to provide appropriate benefits to those who choose to remain single and to strengthen employee welfare.

LG Uplus introduced the 'Unmarried Declaration Support System' in January, which provides employees who declare themselves unmarried with 100% of their basic salary and five days of paid leave, the same as a marriage congratulatory gift. Uplus explained the purpose of the support system as respecting individual values and choices, not encouraging being unmarried. They also plan to gradually relax the application requirements.

Lotte Department Store also supports unmarried employees with allowances and leave, and gifts potted plants instead of wedding bouquets.