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Top businesses struggle to boost sagging birthrate
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By Jun Ji-hye
Think tank cites inadequate implementation of paternity leaves, absence of systems to prevent career disruptions
Despite government-led efforts to address Korea’s low birthrate, most domestic companies have implemented inadequate measures to support their employees with childbirth and child care, according to the Korean Peninsula Population Institute for Future, Monday.
The private think tank in Seoul released the results of an analysis on EPG management, a metric that reflects corporate social responsibility in addressing the population crisis.
The think tank said the average score for the 300 companies was 55.5 out of 100 points, indicating that corporate responses to the population issue are at a failing level.
EPG is a modified version of the ESG framework, which typically evaluates corporate sustainability based on environmental, social and governance factors. In EPG, the social (S) metric is replaced with population (P), shifting the focus to how companies address the population crisis.
The institute conducted Korea's first EPG management evaluation to identify companies actively addressing population issues and to highlight leading examples across industries. This initiative comes as the country grapples with the world’s lowest birthrate.
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In the evaluation, Samsung Electro-Mechanics achieved the highest score with 85.3 points, securing the top rank, while Lotte Fine Chemical followed with a score of 83.8 points.
Shinhan Card, KB Kookmin Card and KT&G tied for third place with a score of 80.9 points.
Among the 300 evaluated companies, the best 50 companies had an average score of 71.5 points, while the worst 50 companies averaged 36.7 points, showing a significant gap.
By type of industries, IT components, hardware, semiconductor and machinery parts manufacturing companies had the highest average score of 60.5 points, while the construction industry had the lowest average score of 51.1 points. The low score is attributed to the high prevalence of non-regular and contract workers, which adversely affected the evaluation category related to promoting a corporate culture that supports childbirth.
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The institute noted that while most companies have established systems for employee childcare support and on-site childcare centers as required by law, only a few have implemented mandatory paternity leave for male employees. Most companies only meet the basic legal requirements for spousal maternity leave.
In particular, there were no existing systems to support employees returning from maternity and childcare leave in continuing their careers and advancing to managerial positions.
The institute emphasized the importance of fostering a work culture that encourages both men and women to engage in childcare. It also highlighted the need to establish systems that prevent disadvantages, such as exclusion from key tasks, for employees returning from maternity and childcare leave.
It added that while the requirement for on-site childcare centers varies depending on the size of the workplace, it is essential to establish such facilities or outsource their operation if there is demand from employees.
The institute urged the government to provide exceptional incentives to companies that voluntarily participate in addressing the population crisis.
“The government should expand tax benefits for companies that prevent career interruptions for women and mandate child care leave,” Yi In-sill, president of the institute said.
“When men take parental leave and experience child care firsthand, their perspective on child care issues changes. Therefore, it is urgent to establish and stabilize paternity leave systems.”