"Family-Friendly SMEs Only 1%... Lowering Entry Barriers to Expand to 10%" [K Population Strategy]

(33) Interview with Kim Hyun-sook, Minister of Gender Equality and Family
Goal to Expand Family-Friendly Certification for SMEs to 40,000
Committee Limitations, Need to Establish Population Ministry
Gender Equality Committee on Hiatus for 8 Months, Role of the National Assembly

Editor's NoteThe key to solving South Korea's population problem lies with companies. A workplace atmosphere that evaluates employees based on work regardless of gender and a family-friendly culture are crucial to addressing the K-population issue. While low birth rates result from complex factors, it is important to ensure that workplace burdens do not become obstacles that make people hesitate to have children. Asia Economy plans to visit companies leading family-friendly policies to identify the factors that helped these systems take root stably, and to explore multifaceted solutions with companies that lack practical conditions. Through this, we aim to encourage change starting from companies and analyze the government's role in enabling this. We listen closely to voices emphasizing that company culture and atmosphere that reduce psychological burdens are more critical than financial support, and propose alternatives from various perspectives.

"We will increase the proportion of family-friendly certified small and medium enterprises (SMEs) from the current 1% to 10%."

On the 6th, at the Government Seoul Office in Jongno-gu, Seoul, Kim Hyun-sook, Minister of Gender Equality and Family, emphasized that rapidly transforming South Korea into a society where work and family coexist is a key task to be accomplished during her term. In a reality where marriage and childbirth have become matters of choice for young people, creating a workplace atmosphere that instills the belief that "I can build my career even after marriage and childbirth," and fostering a society permeated by such culture, is an urgent priority. Minister Kim said, "Our society is gradually changing, but I think progress is still slow," adding, "The Ministry of Gender Equality and Family will accelerate efforts significantly this year."

Minister of Gender Equality and Family Kim Hyun-sook. Photo by Jo Yong-jun jun21@

Minister Kim's ambition to aggressively increase the number of family-friendly certified SMEs to 10% of the total starting this year is for this very reason. There are about 400,000 domestic SMEs (excluding small business owners from the total 7.71 million SMEs), so 10% would be around 40,000 companies. To facilitate rapid expansion, the introduction of a 'preliminary family-friendly certification' stage, which precedes full family-friendly certification, is also being pursued.

Accelerating to 40,000 Family-Friendly Companies

Minister Kim stated, "As of last year, only 4,110 SMEs, about 1% of all SMEs, have received family-friendly certification," emphasizing, "If we add a simplified separate evaluation system focused on childbirth and childcare beyond the current standards, the entry barriers will be lowered, making it easier to initiate change." If the family-friendly certification currently awards 10 carrots for meeting 10 evaluation criteria, the preliminary certification will encourage change by awarding 5 carrots for meeting just 5 criteria. Preliminary family-friendly certified companies that meet additional requirements and pass the review can become fully certified family-friendly companies, and if they maintain this status for a certain period (15 years for large enterprises, 12 years for SMEs), they can advance to the highest certification level in a three-tier system.

The Ministry of Gender Equality and Family annually grants certification to companies and public institutions that exemplarily operate systems supporting childbirth and child-rearing, flexible work arrangements, and work-family balance through the family-friendly certification system. Currently, there are 668 large enterprises, 4,110 SMEs, and 1,133 public institutions certified, totaling 5,911 certified entities.

She emphasized, "Some companies do not even have a parental leave system, or employees are unaware of its existence," adding, "Increasing the number of family-friendly certified companies will raise awareness of the need to cultivate such cultures, and encourage participation from companies in regions and SMEs that are still very underdeveloped."

Currently, family-friendly certified companies receive benefits from various ministries such as the Financial Services Commission, Ministry of Justice, Ministry of National Defense, and local governments nationwide. Minister Kim said she plans to expand this scope further to reduce the economic burden on companies adopting the system and thereby encourage participation. She stated, "If corporate tax reductions by the Ministry of Economy and Finance are implemented, companies will respond significantly," and added, "We also plan to discuss financial benefits such as preferential interest rates with the Financial Services Commission."

"Limited Low Birthrate Committee... Need to Establish a Population Ministry"

Until last year, the Ministry of Gender Equality and Family faced controversy over its possible abolition, but with discussions on a population ministry emerging ahead of the general election, a new phase has begun. While criticisms about the limitations of the Low Birthrate and Aging Society Committee (Low Birthrate Committee), which has served as the control tower for population issues, continue, both ruling and opposition parties are proposing numerous measures to address low birthrate problems. (▶Related article: "Government Can't Keep Up with Low Birthrate Solutions," Hong Seok-cheol, Low Birthrate Committee Member's Candid Remarks [K-population Strategy])

Minister Kim agreed on the limitations of the Low Birthrate Committee and stressed the need for a new ministry combining population and family functions. She emphasized the necessity of establishing a more powerful Population Ministry that includes the Ministry of Gender Equality and Family's functions related to family areas such as childcare, youth, and single-parent families. As population issues have become an urgent task, she suggested that the current system involving multiple agencies such as the Ministry of Health and Welfare, Ministry of Employment and Labor, Ministry of Gender Equality and Family, and the Low Birthrate Committee should be reorganized into a single ministry overseeing the matter comprehensively.

If such inter-ministerial integration occurs, the Ministry of Gender Equality and Family is likely to be abolished or absorbed. Minister Kim said, "Currently, low birthrate projects are very scattered across multiple ministries," adding, "Since both ruling and opposition parties treat population issues as a core election pledge, it is necessary to consolidate the various functions of existing ministries into one comprehensive ministry to implement policies effectively."

Although both ruling and opposition parties are proposing numerous pledges related to low birthrate ahead of the general election, Minister Kim expressed concerns about the opposition's simple cash support measures such as 'childbirth subsidies.' She said, "It cannot be solved by simple cash support alone," and added, "While cash support might encourage childbirth in cases of extreme poverty, South Korea is not such a country now." Instead, systems must be in place that allow individuals to take parental leave, send children to daycare centers, and have children cared for even in elementary schools. In November last year, the Bank of Korea also released a report stating that improving work-family balance systems such as parental leave has nearly twice the impact on increasing birth rates compared to cash support.

Gridlocked National Assembly... "Urgent Mindset"

Gender Equality Project - Kim Hyun-sook, Minister of Gender Equality and Family. Photo by Jo Yong-jun jun21@

Regarding the fact that the National Assembly's Women and Family Committee's bill subcommittee has not convened for the past eight months, she said, "Passing bills is a unique function of the National Assembly," criticizing, "It is time for the ruling and opposition parties to reach an agreement and pass the bills quickly, but blaming the ministries back and forth seems like a political stance." She added, "We are very anxious," and emphasized, "We have repeatedly asked both the ruling and opposition parties to convene the bill subcommittee and pass important livelihood bills, which I believe is a crucial role of the National Assembly."

In particular, regarding the 'childcare service,' which plays an important role in work-family balance, a bill to amend the Childcare Support Act to grant national qualification systems to private childcare providers has been proposed, but discussions have stalled due to the subcommittee not convening. Minister Kim said, "The budget for the currently operating childcare service increased by 113.2 billion KRW, nearly 30%, compared to last year," adding, "The law must pass in the National Assembly to grant qualifications and manage quality for private childcare helpers."

Minister Kim also expressed a critical stance on the 'mandatory military service for newly recruited female public officials' pledge announced last month by Lee Jun-seok, leader of the Reform New Party. The pledge involves mandatory military service qualifications for both men and women who want to become public officials in police, coast guard, fire, and correctional services. Minister Kim said, "With the expected reduction in military personnel due to low birthrate and population decline, increasing professional soldiers is necessary," but dismissed, "Introducing female conscription for general soldiers requires very careful social consensus first."

Minister Kim deeply sympathized with Asia Economy's year-round project 'K-population Strategy - Gender Equality is the Answer,' stating, "The practical ways to realize gender equality are mainly twofold: 'expanding representation in politics' and 'eliminating gender gaps in the economic sphere.'" She pointed out, "The low proportion of women in politics and the gender wage gap in the labor market require further improvement." She continued, "I hope more women will enter the National Assembly in this general election, expanding the foundation for gender equality. The Ministry of Gender Equality and Family will focus on preventing and resolving career interruptions and reducing the gender wage gap as key tasks to achieve economic gender equality and lead change," emphasizing, "We will support women's economic activities through childcare support and maternity protection systems, and promote a gender-equal work environment through organizational culture improvement consulting."

Meanwhile, when asked about her own term, Minister Kim replied, "I do not know," adding, "I think whoever takes over will do well."

Interview by Kim Yuri, summarized by Park Juni

Special Coverage Team 'K-population Strategy - Gender Equality is the Answer'

Reporters Kim Yuri, Lee Hyun-joo, Jung Hyun-jin, Boo Ae-ri, Gong Byung-seon, Park Juni, Song Seung-seop
Economic and Financial Editor Kim Pil-su