KB Financial Group Receives Plaque of Appreciation from LFASC for Leadership in Work-Family Balance

Contributing to Addressing Gaps in Low Birth Rate Policies by Easing Childbirth and Childcare Burdens for Small Business Owners
Providing the Financial Industry's Largest Childbirth Incentives and Introducing Conditional Re-employment Resignation System for Childcare
Operating a Variety of Welfare Programs

On the 9th, Joo Hyunghwan, Vice Chairman of the Low Fertility and Aging Society Committee (right), and Yang Jonghee, Chairman of KB Financial Group (left), are taking a commemorative photo at the KB Kookmin Bank Yeouido New Building. Provided by KB Financial Group.

On July 9, at the KB Kookmin Bank Yeouido New Building, KB Financial Group received a plaque of appreciation from the Low Fertility and Aging Society Committee (LFASC) in recognition of its leadership in supporting efforts to overcome low birth rates and in fostering a work-family balance. The event was attended by Joo Hyunghwan, Vice Chairman of the LFASC, and Yang Jonghee, Chairman of KB Financial Group.

One of the most serious challenges facing Korean society is the "ultra-low birth rate." According to Statistics Korea, the total fertility rate was 0.72 in 2023 and is projected to be 0.75 in 2024, which is the lowest level in the world. Difficulties in raising children, unstable housing and employment, and high childcare costs are causing the younger generation to give up on having children. However, according to Statistics Korea's "April Population Trends" released on June 25, the total fertility rate in April was 0.79, up 0.06 from the same month last year, indicating a rebound from the record low.

Yang Jonghee, Chairman of KB Financial Group, has repeatedly emphasized that "the urgent issue of low birth rates, which threatens the very foundation of our society, is a critical challenge that everyone must work together to solve." Based on this philosophy, KB Financial Group is taking the lead in creating a family-friendly environment, fostering a culture where work and family can coexist, and addressing gaps in childcare.

Last year, KB Financial Group signed a business agreement with major local governments across the country, including the Seoul Metropolitan Government, to support small business owners who had previously been excluded from low birth rate policies such as parental leave and maternity leave. The group pledged a total project budget of 13.5 billion KRW to improve the childbirth and childcare environment for small business owners. Through this initiative, KB Financial Group is providing support for substitute labor costs during maternity and parental leave, offering childcare services, and granting childbirth and childcare encouragement funds, all tailored to the needs of small business owners.

KB Kookmin Bank, a major subsidiary, is also leading the way in addressing the low birth rate and promoting work-family balance by operating a variety of employee welfare programs. These include a conditional re-employment resignation system for childcare, childbirth incentive payments, enhanced support for infertility treatment costs, extended paternity leave, and expanded access to reduced working hours during the childcare period, all designed to provide a flexible working environment and welfare benefits that suit the individual circumstances of employees.

The "conditional re-employment resignation system," introduced at the end of 2023 for the first time in the financial sector, guarantees a total of five years for childcare by offering employees who have used their full two-year parental leave the opportunity to be re-employed three years after resignation. Upon re-employment, employees retain their previous rank without the need for a separate hiring process, thus preventing career interruptions.

In 2025, the parental leave period will be extended from two years to two and a half years, and the system for reduced working hours during the early years of elementary school will be improved, further strengthening childcare-friendly policies. The number of male employees taking parental leave is also steadily increasing, from 85 in 2022 to 152 in 2024.

In terms of childbirth incentives, employees can receive up to 20 million KRW per child: 10 million KRW for the first child, 15 million KRW for the second, and 20 million KRW for the third and subsequent children. For infertility treatment, 10 million KRW is provided to the employee or spouse, and paternity leave has been extended from 10 days to 20 days. The eligibility for reduced working hours during childcare has also been expanded from parents of children under the age of nine to parents of children under the age of twelve, alleviating the childcare burden for employees.

A KB Financial Group representative stated, "The low birth rate issue is a critical problem that we must all address to ensure a sustainable future," adding, "KB Kookmin Bank will continue to create a family-friendly corporate culture where work and family can coexist, and will fulfill its social responsibility by introducing various policies to help overcome the low birth rate."