Some Companies Say "Men Must Take Leave Too"... Mandatory Disclosure Expected to Boost Male Parental Leave [2025 Gender Equality Index]

Mandatory Disclosure of Parental Leave and Flexible Work
Parental Leave Usage Rate at Top 100 Companies: 25.9%
Lotte Group Implements Mandatory Paternity Leave
Flexible Work Utilization Rate Exceeds 50%

Every year, domestic listed companies provide a comprehensive overview of their management through a "business report." This covers everything from business outline and financial status to governance structure, board composition, and employee status. In particular, it serves as a key resource for communicating a company's performance and direction to investors and stakeholders.

Starting with the 2024 business reports disclosed earlier this year, a new item has been added: the status of childcare support systems and flexible work arrangements. In response to the low birth rate and to promote a culture of work-life balance, the corporate disclosure form was revised in November last year, expanding the disclosure obligation?previously applied only to public institutions?to private companies as well. The "Asia Gender Equality Index" has included this as an evaluation item in the "work-life balance" category, and conducted a comprehensive analysis of parental leave and flexible work at the top 100 companies and 37 financial firms.

Men’s Parental Leave: Still a High Barrier, but There Are Exemplars

The average parental leave usage rate among the top 100 companies surveyed for the Gender Equality Index was 25.9%. By gender, the average for women was 76.5%, while for men it was only 12.3%.

Parental leave usage among women appears to be well established. Twenty-seven companies reported a 100% usage rate for female employees, meaning all women who gave birth took parental leave within one year. According to the Financial Supervisory Service’s corporate disclosure guidelines, the parental leave usage rate is calculated as the proportion of employees with a child under one year old who took parental leave within that year. Twenty-one companies reported rates in the 90% range. Except for a few individual cases where employees returned after only using the legally mandated three-month paid maternity leave, parental leave usage is generally considered to be freely accessible.

In contrast, men’s parental leave still has a long way to go. More than half?59 companies?had single-digit usage rates. Twenty-seven companies reported rates in the 10% range. Even among large corporations, it is not yet common for men to take parental leave.

Amid these trends, some companies have shown remarkable results. Lotte Group is a prime example. Lotte Chemical, which ranked second in men’s parental leave usage (71%), led the way, followed by Lotte Shopping (third), Lotte Rental (fifth), Lotte Chilsung Beverage (sixth), and Lotte Wellfood (seventh), all ranking high. Notably, Lotte Chemical ranked first in overall parental leave usage (men and women combined), while Lotte Shopping ranked second. This is thanks to the "mandatory men’s parental leave" system implemented since 2017, which requires male employees to take at least one month of parental leave when their spouse gives birth, with 100% of their regular salary paid during the first month. The company also provides a reintegration support program for returning employees to ease psychological burdens.

Hankook Tire & Technology also posted notable parental leave figures, ranking third overall at 77.3%, and first among men at 73.7%. Hyosung TNC, a textile and trading company, also ranked high with a 50% usage rate among male employees. Both companies operate in industries with a high proportion of male staff, indicating that organizational culture plays a decisive role in encouraging parental leave utilization.

Parental Leave in Finance: High for Women, Low for Men

Overall parental leave usage in the financial sector is better than among the top 100 companies. In fact, the average usage rate among 37 financial firms was 41.3%, roughly 15 percentage points higher than the top 100 companies. This is attributed to a higher proportion of female employees and well-established systems. The average usage rate among women exceeded 80%.

However, the situation is even worse for men. The average usage rate was 6.2%, lower than that of the top 100 companies, and even Hana Card, which had the highest rate, only reached 18%. Excluding Gwangju Bank and Korea Investment & Securities, which did not disclose their rates, there were six companies that reported a 0% usage rate.

Performance-driven organizational culture unique to the financial sector, as well as anticipated income reduction during parental leave, are cited as reasons why men hesitate to take leave. Under the current "6+6 Parental Leave System," employees can receive up to 100% of their regular salary as parental leave pay, but the amount starts at 2 million won per month and increases incrementally, with a maximum of 4.5 million won in the final six months. For high-income earners, this results in an actual decrease in income. In fact, the average annual salary for male employees at the 37 financial firms was 145 million won, higher than the 100 million won average at the top 100 companies.

Flexible Work: Gaps by Industry?Construction, Heavy Industry, and Banks Lag Behind

Last year, both the top 100 companies and 37 financial firms recorded flexible work utilization rates in the 50% range. The types of flexible work arrangements that must be disclosed in business reports are three: staggered hours, flextime, and remote work (including work-from-home).

Among the top 100 companies, 32 used all three types as of last year. Forty-five companies used two types, and 17 used only one. Five companies?S-Oil, Hyundai Corporation, Samchully, Kolon Global, and Korea Petrochemical Ind.?did not utilize flexible work at all. LG CNS stated in its business report that it operates a "self-directed responsibility-based work system" for all employees and implements all three types of flexible work, but did not provide specific usage data as required by disclosure guidelines. Kolon Global began piloting staggered hours in March this year.

By industry, construction and heavy industry generally showed lower adoption rates. Among the 10 companies with the lowest flexible work utilization, seven were from these sectors. Dongkuk Steel (2,118 employees) had only five employees using staggered hours, resulting in a usage rate of just 0.24%. HDC Hyundai Development Company (1,855 employees) had 12 using staggered hours and eight using remote work, for a total rate of 1.08%.

Flexible work utilization in finance also varied widely by sector. Banks, especially regional banks, generally had low adoption rates. IM Bank and Kyongnam Bank did not use flexible work arrangements at all. Busan Bank and Jeonbuk Bank had only double-digit numbers of employees using flexible work. Hana Bank and KB Kookmin Bank also implemented flexible work systems, but the proportion of employees using them was less than 10% of the total workforce. This appears to reflect the characteristics of industries with fixed business hours.

In contrast, internet banks and card companies actively utilized flexible work. In the work-life balance category, which combines parental leave and flexible work, K Bank ranked first, with Lotte Card and Hyundai Card tied for second.

Will Disclosure Obligations Be a Game Changer?

Japan introduced a mandatory parental leave disclosure system for private companies ahead of Korea, starting in April 2023. As a result, the male parental leave usage rate rose from 17.1% in 2022 to 30.1% the following year. Mandatory disclosure has changed both corporate culture and social perceptions regarding men’s parental leave. Japan’s Ministry of Health, Labour and Welfare analyzed that "creating an environment where it is easy to take parental leave led to increased usage among men." The Japanese government aims to raise the male parental leave usage rate to 85% by 2030.

Korea’s decision to require private companies to disclose parental leave and flexible work status is based on similar expectations. The Presidential Committee on Ageing Society and Population Policy, when deciding on mandatory disclosure in October last year, specified it as a task for spreading a culture of work-life balance. Academic research supports this. According to a paper published in the first issue of 2022 of "Women’s Studies," an academic journal by the Korean Women’s Development Institute, fertility rates tend to rebound in societies with high levels of gender equality and greater potential for work-life balance. The paper suggests, "The responsibility for childrearing and caregiving should not be borne solely by women; men, women, and society as a whole must share these roles to some extent."

For mandatory disclosure to bring about real change rather than remain a mere institutional measure, a shift in culture must occur beyond the numbers. Whether this newly implemented disclosure system will serve as a starting point for changing corporate culture and social perceptions will be revealed in the 2025 business reports to be released early next year.

Editor's NoteThe "Asia Economy Gender Equality Index," launched to review the status of female workforce utilization and gender equality efforts at major domestic companies and to promote work-life balance, marks its 10th anniversary this year. The Gender Equality Index has served as a catalyst for fostering a culture of inclusion and coexistence within companies. On the occasion of its 10th anniversary, Asia Economy has adjusted the evaluation items and methods and enhanced its analysis framework to increase the objectivity and reliability of the index. As the values of sustainability and diversity grow in importance, we hope the Gender Equality Index will continue to serve as a compass for companies.