Controversy erupts over ‘single life’ welfare packages

Recently, private companies and public sector unions in South Korea have sparked controversy by introducing welfare packages that provide celebration money to employees who declare their intent to remain single or unmarried for life. Proponents argue that remaining single is a personal choice that deserves the same respect as marriage and childbirth. At the same time, critics contend that such policies are undesirable in a country with an extremely low birth rate of 0.6 children per woman.

According to a report by The Dong-A Ilbo on Wednesday, the Industrial Bank of Korea (IBK) trade union has decided to demand that the company provide celebration money for employees who officially declare their intent to stay single for life. The company is currently reviewing the viability of this demand. Traditionally, the IBK has provided paid leave and celebration money to newly married employees, and some union members believe that those who choose to stay single should receive equivalent benefits. As a state-owned bank, IBK is a public institution, with 50% of its stake owned by the Ministry of Economy and Finance.

LG Uplus and other private companies have introduced similar benefits in recent years, but this is the first time such a policy is being discussed within a public institution. "Although the policy adoption requires the Ministry of Economy and Finance’s authorization and involves a complex procedure, given the changing perceptions of marriage and childbirth, we believe it is worth considering," an IBK union official stated.

However, there are concerns that such a policy may be seen as the government and businesses incentivizing a preference for remaining single rather than addressing the low birth rate. Hong Seok-cheol, an Economics professor at Seoul National University and former member of the Presidential Committee on Low Birth Rate and Aging Society, emphasized that instead of striving for a mechanical balance between the single and married populations, the government should consider more unconventional policies, such as offering a 100 million won subsidy for childbirth.


이상환 기자 payback@donga.com