$75,000 Per Baby: Can Corporate Cash Incentives Strengthen Child Protection in South Korea?
When a South Korean company offered $75,000 for every newborn, it was seen as a dramatic attempt to boost births. But beyond the headlines, the move raises a deeper question: can bold financial incentives help strengthen child protection and long-term safeguarding?
When Booyoung Group announced it would pay employees 100 million Korean won, about $75,000, for each child they have, the policy was framed as a response to South Korea’s critically low fertility rate. Yet child welfare experts say the initiative could also carry implications for child protection and family stability.
South Korea’s fertility rate, which stood at 0.78 in 2022, reflects mounting economic pressures on families. High housing costs, childcare expenses and job insecurity are often cited as reasons couples delay or avoid having children. Financial strain is also a known risk factor for family stress, which can increase vulnerability to neglect or instability in the home.
Direct cash support at birth may ease immediate financial burdens, helping families secure housing, healthcare and essential supplies. Booyoung’s additional option of housing support for employees with three children further addresses one of the most critical pillars of child safeguarding: stable shelter.
However, experts caution that financial incentives alone are not a complete child protection strategy. Long-term safeguarding requires access to affordable childcare, parental leave, mental health support and quality education. Sustainable systems must accompany one-time payments to ensure children grow up in safe, nurturing environments.
As governments and private companies explore ways to respond to demographic decline, the broader lesson is clear: boosting birth rates must go hand in hand with strengthening the protective frameworks that ensure every child is raised in security, dignity and care.