"Chairman Announces Bold Welfare Plan: 100 Million Won Per Child Born"

Chairman Lee Jung-geun of Booyoung Group Announces at January 5th Opening Ceremony
Permanent Rental Housing Provided for Employees with Third Child
Proposes 'Childbirth Incentive Donation Tax Exemption System'
Promises to Establish 'Same-Day Repair' Policy for Housing Defects

Lee Joong-geun, chairman of Booyoung Group, has rolled up his sleeves to address the low birthrate issue. Since 2021, he has mandated that employees who have given birth receive a childbirth incentive of 100 million KRW each. Furthermore, for employees who have a third child, permanent rental housing free from tax burdens will be provided. Chairman Lee also proposed a policy that childbirth incentives should be treated as donations and thus eligible for income tax deductions, to help establish a culture of encouraging childbirth among employees across companies.

At the ‘2024 Opening Ceremony’ held on the 5th at Booyoung Taepyeong Building in Jung-gu, Seoul, Chairman Lee stated, "To solve the low birthrate problem, we will alleviate the economic burden of raising children for our employees and directly support work-family balance by providing a childbirth incentive of 100 million KRW."

A total of 7 billion KRW will be supported for 70 employees who have given birth since 2021. Booyoung clarified that this is not a one-time event but a continuing policy to provide 100 million KRW for each childbirth in the future. For families of employees who have a third child, either childbirth incentives for three children will be provided, or permanent rental housing of national housing scale will be offered without tax burdens or maintenance responsibilities. In addition, Booyoung Group operates internal welfare programs to address the low birthrate issue, including ▲payment of university tuition for children ▲medical expense support for immediate family members ▲child allowances.

Lee Joong-geun, Chairman of Booyoung Group, is speaking at the '2024 Opening Ceremony' held on the 5th at the Booyoung Taepyeong Building in Jung-gu, Seoul. Photo by Kwon Hyun-ji

Chairman Lee also proposed the ‘Childbirth Incentive Donation Tax Exemption System’ as a solution to the low birthrate. The main content of this system is to allow individuals or corporations to donate up to 100 million KRW per child born after January 1, 2021, and to provide income tax deductions for such donations. This proposal aims to encourage companies to promote childbirth among their employees. In particular, Chairman Lee suggested designating the received amount as tax-exempt as well. He explained, "If such a system is supported, like the past ‘Gold Collection Movement,’ individuals and companies will voluntarily participate alongside the government to overcome the low birthrate crisis."

Regarding the rental housing system, he presented a plan to supply permanent rental housing. Chairman Lee pointed out, "After 50 years of experience in the rental housing business, problems have arisen in the current private rental housing system where rental and sale characteristics are mixed in sale-waiting rental housing. There are limitations in stabilizing housing for non-homeowners, as defects are strategically used ahead of sale conversion." The idea is to have the owner maintain defects to reduce disputes between landlords and tenants and alleviate housing insecurity for non-homeowners.

He added, "We should refer to advanced foreign cases of rental housing and allow the private sector to expand permanent rental housing projects. I propose restructuring to have 30% permanent rental housing for residents and 70% owner-occupied housing."

Booyoung Group also promised to establish the ‘same-day repair’ principle for housing defects, introduced in June last year. If same-day repair is difficult due to work circumstances, repairs will be completed within a week, and a ‘preemptive response system’ will be established before defects occur. As of the 31st of last month, Booyoung Group announced that 100% of previously reported defects have been repaired.

Chairman Lee emphasized, "In the permanent rental housing business, housing management will become especially important. Booyoung Group will benchmark global market cases to strengthen housing management capabilities and strive to become a company known as the ‘synonym for livable homes’ as a specialized rental housing management company."

This content was produced with the assistance of AI translation services.