South Korean builder Booyoung Group’s recent open recruitment has attracted five times more applicants than before. The sudden surge in applicants was particularly notable among those in their 20s and 30s, driven by the company’s policy of offering 100 million won per child to employees who have given birth since 2021.
The number of people who applied for Booyoung’s open recruitment from June 10 to 16 this year has increased more than fivefold compared to the builder’s last open recruitment in 2017, the company said in a statement on June 27.
The company reported a dramatic increase in applications for experienced positions, particularly from younger applicants in their 20s and 30s. Applications for these positions had been traditionally dominated by those in their 40s and 50s. “Though specific numbers can’t be disclosed during the ongoing hiring process, there’s been a significant rise in applicants,” a Booyoung spokesperson said. “The financial appeal of the childbirth encouragement policy seems to resonate with young job seekers who previously hesitated to get married and have children due to financial reasons.”
Chairman Lee Joong-keun announced the childbirth encouragement policy in February to help boost the country’s record-low birth rate. Under the policy, employees with children born after 2021 are offered 100 million won per child. A total of 7 billion won has been provided to 66 employees under the policy, making Booyoung the first domestic company to offer such a substantial childbirth incentive.
In March, the government decided to fully exempt childbirth support funds provided by companies from income tax and proposed an amendment to the Income Tax Act, retroactively effective from Jan. 1 this year. The amendment is expected to pass in the National Assembly later this year without disagreement between the ruling and opposition parties.
The childbirth incentive is distributed to employees once annually. Employees who have children this year will receive the incentive in a lump sum at the beginning of next year. Booyoung Group anticipates more than 30 employees will have children this year.
