"10 Million Won for First Child, 100 Million for Third" Agricultural Machinery Firm Launches Bold Childbirth Support Program

10 Million Won for First Child, 30 Million Won for Second
Cumulative Support Exceeds 1 Billion Won in Two Years

Recognizing the urgent need for private sector efforts to address the declining birth rate, major domestic companies are introducing a series of childbirth support programs. Booyoung Group made a significant impact in the business community by awarding 100 million won per child to employees who gave birth, and agricultural machinery specialist TYM also drew attention last year by implementing an unprecedented childbirth incentive program.

The scene from the 1st '2024 Childbirth Incentive Award Ceremony' held by TYM on March 21 last year. On this day, TYM awarded incentives to 19 employees. TYM

100 Million Won for Third Childbirth... Total Incentives Exceed 1 Billion Won

On December 23, TYM announced that the cumulative amount paid out through its childbirth incentive program, introduced last year, has surpassed 1 billion won. Since last year, TYM has awarded 10 million won to employees for their first child and 30 million won for their second child. For a third or subsequent child, the incentive jumps to 100 million won.

In particular, under the government's tax exemption policy for corporate childbirth incentives, the entire amount is tax-free, and employees with multiple children can receive overlapping payments. TYM's childbirth incentive program is considered the most generous among local governments and large corporations in South Korea.

The scene from the 1st '2024 Childbirth Incentive Award Ceremony' held by TYM on March 21 last year. On this day, TYM awarded incentives to 19 employees. TYM

In addition to childbirth incentives, TYM actively supports employees' childbirth and childrearing through various welfare programs. Pregnant employees are offered two hours of reduced work per day to help with health management and childbirth preparation, and the company provides 90 days of leave before and after childbirth as well as paternity leave for spouses.

TYM stated, "By introducing a childbirth incentive program of up to 100 million won, we are providing comprehensive support for employees' stable childbirth and childrearing," adding, "As a leading brand in the domestic agricultural machinery industry, we will continue to expand policies and employee welfare programs that help address the low birth rate issue."

'100 Million Won Childbirth Incentive' Booyoung Group Leads the Way in Addressing Low Birth Rate

Last year, Lee Joong-geun, Chairman of Booyoung Group, was at the Booyoung Group headquarters in Seosomun, Jung-gu, Seoul, distributing childbirth incentives to employees who had given birth and taking commemorative photos. Booyoung Group

The best-known example of a childbirth incentive policy is Booyoung Group. From 2021 to last year, Booyoung awarded a total of 9.8 billion won in childbirth incentives to employees' children born during that period.

After implementing this program, Booyoung Group saw an increase in the in-house birth rate and a rise in competition for open recruitment. When employees who received childbirth incentives were initially subject to tens of millions of won in income tax, the government intervened to grant tax exemption benefits for corporate childbirth incentives.

This bold support originated from Chairman Lee Joong-geun's strong sense of urgency regarding the issue. Chairman Lee previously stated, "If the low birth rate continues, the nation itself could be threatened in 20 years due to a sharp decline in the working population and a shortage of military personnel," adding, "I hope corporate childbirth support will serve as a catalyst for spreading such efforts throughout society."