Yoon Orders Measures to Promote Voluntary Childbirth Support by Companies

'100 Million Won Childbirth Support Fund' Cases Spread Including Booyoung
Excessive Taxes Criticized as Burden on Employees and Companies

President Yoon Suk-yeol on the 13th instructed, "Immediately devise various support measures, including tax benefits, to promote voluntary childbirth support by companies."

Regarding the recent spread of corporate efforts to overcome low birth rates, such as large-scale childbirth support payments, President Yoon described it as "quite encouraging," according to Kim Soo-kyung, spokesperson for the Presidential Office, in a written briefing on the same day.

[Image source=Yonhap News]

As the total fertility rate is expected to fall to the 0.6 range this year, an active culture of childbirth support is being established, especially among large corporations.

In particular, Booyoung Group Chairman Lee Jung-geun has paid 100 million won each to about 70 children of employees born since 2021, totaling 7 billion won. This is the first time a company has paid 100 million won as childbirth support money.

However, concerns have been raised that tax issues could hinder the spread of a voluntary childbirth and childcare support atmosphere among companies. If childbirth support money is calculated as income, a worker earning more than 50 million won annually who receives 100 million won must pay up to 38 million won in taxes alone.

On the other hand, if a company 'gifts' 100 million won due to income tax issues, the recipient only has to pay a 10% gift tax, but since the company cannot recognize it as an expense, the company's tax burden increases.

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