"New Low Birthrate Policy NO... Proper Implementation of Parental Leave and Daycare First" [K Population Strategy]

NH Investment & Securities Working Mom and Working Daddy Interview
Parental Leave Extended from 20 to 24 Months
Available for Men Too... No Disadvantages
Parental Leave as a Means to Protect Dual-Income Household Income
In-House Daycare Enables Focus on Work

Jang Jaeyoung, Deputy General Manager of Asset Management Strategy Department at NH Investment & Securities (left), and Choi Hyunjun, General Manager of Carbon Finance Department at NH Investment & Securities, are being interviewed by Asia Economy on March 14th morning at the in-house daycare center located in Yeouido, Seoul, regarding measures to support low birth rates. Photo by Jo Yongjun jun21@

Parental leave is a highly beneficial system as it enables income compensation for dual-income couples. On-site daycare centers have the advantage of reducing psychological burdens, which is why they are called 'lotto'.

NH Investment & Securities is nicknamed 'Godtu Securities.' Aside from being renowned as a traditional powerhouse in the Investment Banking (IB) sector, this nickname was given due to its outstanding childcare welfare system. Before going to work, we spoke with Gong Yoon-young, Deputy Manager of Settlement Operations at NH Investment & Securities, and Jang Jae-young, Deputy General Manager of the Asset Management Strategy Department, both of whom are 'securities professionals' and 'parents,' about the challenges faced by working parents raising children. Deputy General Manager Choi is raising a 38-month-old daughter, and Deputy General Manager Jang is raising a 28-month-old son. Their stories deserve attention as they represent the voices of working moms and dads in South Korea.

When asked about 'the most necessary system or support for working parents raising children,' an unexpected answer came up. It was parental leave and the company daycare center. There were no new demands. They unanimously agreed that strengthening existing systems would be of great help.

Jang Jaeyoung, Deputy Head of Asset Management Strategy Department at NH Investment & Securities, is speaking on the morning of March 14 at the NH Investment & Securities in-house daycare center in Yeouido, Seoul, about the need to activate the parental leave system to address the low birthrate issue. Photo by Jo Yongjun jun21@

Jang, a father of a son, emphasized, "Parental leave is essential for dual-income families," adding, "Through the parental leave system, my wife can protect her career from interruption during childcare, and the fact that there is no financial burden is very important." He also added, "In many regular workplaces, there are still many cases where employees hesitate to apply for parental leave due to concerns about disadvantages in wage negotiations or being pressured to resign, so many do not even apply."

Currently, under the Equal Employment Opportunity Act, employers are required to approve parental leave applications from employees who have children under 8 years old or in the second grade of elementary school or below for childcare purposes. However, reality is different. According to the 'Work-Family Balance Survey' conducted by the Ministry of Employment and Labor in 2021, 34.2% of workers reported feeling burdened by applying for parental leave, making it difficult to apply. NH Investment & Securities expanded the parental leave period to 2 years starting this year, separate from maternity leave.

Gong Yoon-young, Assistant Manager of Settlement Operations at NH Investment & Securities, is talking about the challenges of being a "working mom" and the company's childcare policies. Photo by Jo Yong-jun jun21@

The on-site daycare center was also cited as a system that greatly reduces childcare burdens. Deputy Manager Gong, a mother of a daughter, emphasized, "It is convenient to have a daycare center near the workplace," adding, "The biggest advantage is that if something happens to the child, I can briefly take care of the child during lunch break." The NH Investment & Securities daycare center is a 7-minute walk from NH Investment & Securities (Yeouido Park One).

Jang said, "Securities firms have high market volatility, so employees experience high work stress, making the tension higher than in other industries. Working parents may not be able to pay much attention to their children, but since the company operates a daycare center, I feel at ease."

The biggest advantage of the on-site daycare center is that it is operated in a customized way according to company working hours and industry characteristics. For this reason, they hinted that they prefer the on-site daycare center over daycare centers near home. Jang said, "NH Investment & Securities' commuting hours are early, from 7:30 to 8:00 a.m., which is early even among securities firms," adding, "The daycare center opens early and operates until 8 p.m., so there is less mental burden during overtime work."

It is rare for securities firms in Yeouido to operate daycare centers directly. Most use daycare centers linked with the Korea Exchange or the Korea Financial Investment Association. Operating a daycare center directly involves considerable costs and procedures, such as securing a minimum number of children and leasing contracts. Although salaries and bonuses boast the highest levels in the country, this shows that childcare-related systems still have a long way to go.

At the NH Investment & Securities in-house daycare center, employees' children arrive from 7:30 AM. The company operates the daycare until 8 PM for employees working late, providing educational programs and the best meal plans for the children. Photo by Jo Yongjun jun21@

Another reason NH Investment & Securities employees are satisfied with the on-site daycare center is its strength in organic meal plans. Jang said, "The fruits given to children are from top brands, so some employees who moved their children to daycare centers in Gangnam because of the meals are now considering re-registering at our daycare center," emphasizing, "Parents are sensitive about 'what their children eat,' and since the daycare center takes full responsibility for providing the highest level of meals and education, it allows parents to focus on work after coming to the office."

Both said they are also satisfied with the educational programs at the on-site daycare center. The daycare center communicates weekly and monthly lesson contents to parents and operates separate external invited educational programs. The availability of various educational programs such as native English teachers and specialized art classes is also an advantage. There is also a separate evening education program for parents working overtime.

When asked about realistic support measures to change the low birthrate trend, they once again mentioned utilizing existing systems. Deputy Manager Gong and Deputy General Manager Jang emphasized, "I took 20 months off to be with my child, but there were no disadvantages," adding, "If there is confidence that one can return to the company and the company supports childcare institutionally, people will have children."

*Checkpoints

- Parental leave extended to 2 years, separate from maternity leave

- Customized on-site daycare center operation

- No disadvantages in personnel matters such as promotion after leave