By Lee Kyung-min
Almost half of the workplaces in Korea have failed to set up daycare centers for employees’ children, government data showed, Friday.
They may face fines of up to 200 million won ($162,000) per year if they keep failing to provide daycare.
Under the law, businesses that have more than 500 workers or 300 female workers are required to either set up daycare facilities, or pay nearby centers that take care of their workers’ children. Violators can face a fine of 100 million won, up to twice per year, starting this year.
According to the Ministry of Health and Welfare, 605 out of the 1,143 establishments subject to the regulation, or 52.9 percent, had daycare centers as of December.
Of the rest, 360 said they were setting up facilities or in the process of signing contracts with nearby centers, while 178 failed to submit plans to abide by the law.
The ministry disclosed the names and addresses of the violators on its website, which includes some local government offices such as Yeongju City in North Gyeongsang Province; Sogang, Sungkyunkwan, Hansung, and Kwangwoon universities; public and private companies such as Seoul Metro, Nexen, Mirae Asset Securities and Ssangyong Motor; and accounting firms including Samil PricewaterhouseCoopers and KPMG Samjong.
Regarding the reason for not setting up daycare centers, 25 percent cited lack of space, followed by a lack of workers who are expected to use the facilities, 24.4 percent.
Some 20 percent said the working environment was not proper for a childcare facility, and 13.8 percent and 12.9 percent cited the burden of operational costs and the expense of construction, respectively.
“The regulation was introduced to address the concerns by many working women who quit their jobs due to difficulties in finding reliable and affordable daycare,” a ministry official said. “But only half of the required workplaces are following the rule.”
To relieve the financial burden, the ministry plans to provide a total of 97.6 billion won to establishments for construction or operational costs this year, up to 1.5 billion won to each.
The official said what is more important than imposing fines is changing the companies’ mindsets.
“We are trying to encourage companies to voluntarily set up and maintain childcare facilities. They need to realize that increasing satisfaction for working mothers and parents would result in better performance, thus contributing to company profit,” she added.