Naver Appoints Female CEOs Consecutively... Expanding Female Executives Remains a Challenge [K Population Strategy]

Naver Ranks 2nd in Gender Equality Among Top 100 Companies
Provides Detailed Care for Pregnancy and Childbirth in 4 Stages
Needs to Foster Female Leaders Including Managers and C-Level Executives

Editor's NoteDo the top companies in each domestic industry not only have systems related to work-family balance but also a corporate culture that allows these systems to be effectively utilized? Asia Economy announced the '2024 Asia Economy Gender Equality Comprehensive Score' through a thorough investigation of the business reports over the past five years of the top 100 listed companies by sales and 36 major financial companies in April. It quantified the gender employment status and work-family balance levels of major companies and ranked them from 1st to 100th (1st to 36th for financial companies). However, a relatively high score and well-established systems do not necessarily mean the active realization of work-family balance. A culture where employees feel comfortable using these systems must be fostered for well-established systems to truly shine. Therefore, Asia Economy took an in-depth look at various aspects that are difficult to quantify but reflect the actual use of systems by the top companies in each domestic sector. Through this, we aim not only to examine the current status of leading companies in each field but also to suggest directions for small and medium-sized enterprises, which generally have less developed systems.

Choi Soo-yeon, the CEO leading Korea's representative IT company Naver, is a 'working mom in her 40s.' In 2022, she became the youngest female CEO among 119 Naver leaders, drawing external attention as a 'bold appointment,' but internally, it was not surprising. This was because Han Sung-sook, the former CEO who had already broken the glass ceiling, preceded her. Han was noted as the first female CEO in Korea's large IT industry. The ability to consecutively produce female CEOs is because Naver is a company that offers opportunities based solely on ability, regardless of gender or age. Moreover, the core of Naver's family-friendly policies is the meticulous support to ensure that pregnancy and childbirth do not become obstacles to career advancement.

This influence has been a driving force behind Naver's strong performance in the gender equality sector. Naver ranked 2nd in the '2024 Asia Economy Top 100 Companies Gender Equality Comprehensive Score.' Although its ranking dropped by one place compared to the previous survey, its overall score remained the same at 35.50 points. It scored above average in regular employee numbers (4.75 points), average years of service (8.00 points), and salary (7.75 points), and achieved an overwhelmingly high 15.00 points in the internal director category. The fact that both internal directors are women, which is rare, was highly evaluated.

New Infertility Support... Valet Parking for Pregnant Employees

The key system that contributed to the high gender equality score is the flexible work system. Since 2022, Naver has introduced 'Connected Work,' allowing employees to choose not only their working hours but also their work location. Employees can freely choose between 'Type O,' which requires coming to the office three days a week, and 'Type R,' which is fully remote work. Additionally, there are no fixed core working hours or minimum daily working hours; employees can work freely between 6 a.m. and 10 p.m. on weekdays. This flexible work style has been especially well received by working moms and working dads. A Naver employee said, "If a child is sick, there is no need to suddenly take a day off; I can work from home and take the child to the hospital," adding, "Everyone is already accustomed to this, so it is not considered a special system."

Moreover, meticulous support is provided throughout the life cycle related to pregnancy: before pregnancy, from pregnancy to before childbirth, from childbirth to parental leave, and after returning to work. Particularly notable is the detailed support segmented from before pregnancy to after returning to work.

Before pregnancy, employees can utilize the infertility support system, which was newly established in August this year. It provides up to six months of infertility leave to focus on treatment and supports infertility procedure costs up to 2 million KRW. After completing parental leave, there is also a program to facilitate smooth re-entry. To maintain networking with colleagues during leave, the company supports club activity expenses and arranges networking meetings with colleagues returning around the same time. A Naver representative explained, "Since there is vague anxiety about taking leave, this system reflects the opinion that it would be good to maintain bonds even during this period."

Considerate measures for pregnant employees are also noticeable. Upon registering pregnancy, a 500,000 KRW incentive is provided. This is to encourage early notification of pregnancy so that extended, night, and holiday work can be avoided. During pregnancy, employees can shorten their workday by up to two hours regardless of the week number. Business trips during pregnancy are discouraged as much as possible, but if unavoidable, business class airfare is supported. Additionally, valet parking service is provided at the company parking lot for pregnant employees commuting by car.

Naver Puruni Pangyo Daycare Center

Diverse family-friendly facilities are also a point of pride for Naver. Currently, six exclusive daycare centers for employees operate in Seocho, Bundang, Suji, and other locations. The most recently opened daycare center in Pangyo spans 4,603 square meters with a capacity of about 300 children. From the design stage, various domestic and international cases were analyzed to present diverse spatial configurations. Considering its location among a forest of buildings, open glass and eco-friendly materials were used to create a spacious atmosphere. In addition, various convenience facilities such as lounges for pregnant employees and nap rooms are equipped, and the mother-child friendly room with breast pumps is accessible only to tagged eligible users, enhancing convenience through a system.

33% Female Ratio Among Leaders... What It Takes to Produce the Next Choi Soo-yeon

Robust family-friendly policies have led to the cultivation of female talent. Last year, the proportion of female employees at Naver (based on regular employees) reached 41%, up 5 percentage points from 36% in 2020. The proportion of female leaders also increased from 24.5% in 2020 to 33% last year, with 59% of them being 'working moms' balancing work and child-rearing. The return rate of female employees who took parental leave was also high at 96%.

However, voices inside the company say that satisfaction with the current level is not enough. Although the proportion of women in top positions (C-level), including internal directors, CIC (Company-In-Company) heads, and business leaders, is higher than in other companies due to consideration for pregnancy and childbirth and elimination of invisible discrimination, the absolute figure remains at 22%. This means that only about 2 out of 10 executives are women. Therefore, while welfare for female employees is strong, there is still a long way to go in terms of promotion to executive positions.

To increase the proportion of women in managerial and C-level positions, systems and cultures to nurture female leaders must be established. Besides the fact that all internal directors, including CEO Choi and External & ESG Policy Representative Chae Seon-joo, are women, there are calls to increase the proportion of female outside directors and to implement separate programs for developing female leaders. Through this, it is believed that corporate culture diversity can be secured and the second and third Choi Soo-yeons can be nurtured.