"Free Rehire After 5 Years of Childcare... Don't Worry About Career-Interrupted Women" [K Population Strategy]

To Solve Low Birthrate
Focus on Women's Career Retention Issues
Unpressured Parental Leave
Women Leader Programs, etc.

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

"Free Rehire After 5 Years of Childcare... Don't Worry About Career-Interrupted Women" [K Population Strategy]

South Korea's total fertility rate stands at 0.78. Overcoming the low birth rate has become a national issue. Asia Economy, through its year-round project "K-Population Strategy - Gender Equality is the Answer," has focused on companies as the starting point for solving this problem and has covered various corporate cases. Among these, particular attention was paid to the issue of women maintaining their careers. In today's environment where women's economic participation is active, concerns about 'career-interrupted women (Gyeongdan-nyeo)' are one of the major reasons for hesitating to have children.

In fact, the female economic activity participation rate in South Korea reached 54.6% (as of 2022), showing active involvement, but the proportion of women sharply decreases as one moves up to higher positions. According to a 2021 survey by the Ministry of Gender Equality and Family on the gender status of executives in 2,246 listed companies, the proportion of female executives was only 5.2%. In the "Gender Equality Comprehensive Score" data analyzed by Asia Economy based on the top 100 listed companies by sales, only five companies had female inside directors with decision-making authority. (Related article: "There Are Women, But No Leaders" ... Career Interruptions Blocking Women's Growth [K-Population Strategy])

There are complex causes, but career interruptions due to childbirth and childcare have a significant impact. According to the '2023 Women Managers Panel Survey' by the Korean Women's Development Institute, the burden of caregiving has a greater effect on resignation among female managers than male managers. For female managers, each additional hour of caregiving time by their male spouse increased their likelihood of resignation by 3%, whereas for male managers, each additional hour of caregiving time by their female spouse actually decreased their likelihood of resignation by 6%.

Thus, childbirth and childcare have a profound impact on women's careers. The belief that companies provide an environment where women who have experienced childbirth and childcare can still demonstrate their abilities is an important stepping stone for maintaining women's careers. From a corporate perspective, this also helps retain skilled talent through a 'lock-in effect,' enhancing long-term competitiveness.

"I Won't Give Up on My Career or Childcare"

"I was even considering quitting because there was no one to take care of my 5-year-old son, but I was glad when the re-employment after retirement system was introduced." Jeong Hae-shin, a 41-year-old assistant manager at KB Kookmin Bank with 18 years of experience, took 'childcare retirement' last month under the condition of re-employment. KB Kookmin Bank established last year a 'conditional re-employment childcare retirement system' that guarantees up to five years of childcare leave, including two years of parental leave. This system grants employees who have taken parental leave the opportunity to be re-employed three years after retirement without a separate hiring process, returning to their previous rank before retirement. (Related article: "Don't Worry About Career Interruptions" Re-employment After Childcare Retirement... Cases of Childbirth After Infertility Leave [K-Population Strategy])

Jeong said, "I can focus on taking care of my child during the retirement period," adding, "I no longer worry about career interruptions because I can return to work as before." The bank views such systems as helpful in securing talent, reducing costs associated with hiring and training, and enhancing competitiveness. A KB Kookmin Bank official explained, "It takes several years for new employees to become skilled talent, but re-employed employees only took a break from their previous work, so they adapt much faster upon return."

"100% Return Guarantee After Parental Leave"

A welcoming atmosphere for women returning from parental leave also greatly helps in continuing their careers. Kim Min-young, a 34-year-old head manager at Lotte Hotel, returned in December 2021 after taking a total of two and a half years off, including three months of prenatal leave, three months of maternity leave, and two years of parental leave starting from June 2019. Before her leave, she worked in the marketing department but transferred to the strategic planning team. Kim said, "The company atmosphere welcoming returning employees was a great help in adapting," adding, "It would have been hard to endure if the attitude was like 'You took two years of parental leave'."

Some companies encourage employees to take parental leave without hesitation by hiring substitutes. Lee Seung-won, a 41-year-old employee at Ferring Pharmaceuticals Korea, handed over her duties to a substitute for a month before taking about a year of leave. Upon returning, she received a handover from the substitute to speed up adaptation. Taking parental leave can cause psychological guilt about colleagues having to do extra work, but such systems reduce the burden of using parental leave, creating a virtuous cycle. Lee said, "Before going on maternity leave, I saw other team members take a year off and return, so when I found out I was pregnant, I thought I could do it too," adding, "After returning from maternity leave, I felt relatively energized and performed well because I was treated considerately."

BAT Roosmans, the Korean branch of BAT Group known for tobacco products like 'Dunhill' and 'Glo,' has adopted a '100% Return Guarantee System' that ensures no disadvantages in team assignments or promotions after using maternity or parental leave. Jung Joo-hee, assistant manager of the HR team, explained, "It is natural to ensure no penalties upon return from parental leave," adding, "There is a company-wide recognition that everyone should have their position when they return after taking personal leave, and that it should not cause any disadvantage."

Jin Mi-kyung, Executive Director of Consumer Protection Headquarters at Shinhan Card. Photo by Huh Young-han younghan@

"Leaders Are Not Just About Men"

Programs to nurture female leaders are also important. Shinhan Financial Group launched 'SHeroes' (Shinhan's Female Heroes), the first female leadership development program in the financial sector, in 2018, and Hana Financial Group introduced the 'Hana Waves' program in 2021 to cultivate next-generation female leaders. By 2022, 220 people had completed Shinhan's SHeroes program, producing 20 female executives and division heads. Hana Waves had 98 graduates by last year, with seven promoted to executives and division heads. (Related article: "Financial Company Executives Are Not Just About Men" [K-Population Strategy])

Such programs play a crucial role in forming networks among women. Jin Mi-kyung, executive director at Shinhan Card and a graduate of SHeroes' second cohort, emphasized, "SHeroes greatly helped in forming internal and external networks." One of the challenges women face as they rise to higher positions is 'human networks.' Jin said, "The higher the position, the more capable people you need around you, and I worried about how to surround myself with many people," adding, "Through SHeroes, I built many connections and have received a lot of help."