I. Legal Basis

• Equal Employment Opportunity Act (EEOA) 
• Labor Standards Act 
• Employment Insurance Act 
• Minimum Wage Act

The persistently declining fertility rate has emerged as one of Korea’s most serious demographic challenges over the past decade. In response, the Korean government has introduced a series of measures aimed at encouraging childbirth, improving the child-rearing environment, and restructuring workplace culture. These policies extend beyond financial support, seeking instead to transform gender norms and promote a more equitable allocation of family caregiving responsibilities.

II. Key Measures

2.1. Newly Expanded Policies

As part of its efforts to address prolonged low fertility, Korea has introduced a range of measures expanding parental entitlements. Notably, the “Joint Parental Leave” scheme allows both parents to take leave concurrently while receiving monthly benefits ranging from KRW 3 million to KRW 4.5 million, representing a significant shift in family policy design.

Previously, each parent’s leave entitlement was capped at one year. As of February this year, however, where both parents take at least three months of leave, each parent may extend their leave to up to 18 months, divided into four phases. Correspondingly, benefit levels have been adjusted: KRW 2.5 million per month for the first three months, KRW 2 million for the subsequent three months, and KRW 1.6 million for the following six months, subject to the employee’s wage level.

Beyond parental leave, the government has expanded reproductive healthcare support, setting a target to increase the number of individuals receiving fertility testing to 210,000 by 2027—nearly three times the figure recorded in 2022. In addition, to strengthen neonatal care capacity, particularly for premature infants (who accounted for over 10% of births in 2023), two new emergency centers for mothers and newborns are scheduled to be established next year.

Overall, these reforms reflect a comprehensive governmental approach to reducing the costs associated with childbirth and childrearing—costs widely regarded as a major deterrent to family formation in Korea.

2.2. Workplace Culture Reform and the Promotion of Gender Equality

The policy reforms have also driven notable changes in workplace culture. According to data from the Ministry of Employment and Labor (MOEL, 2025), the proportion of men taking parental leave has risen to nearly 40%, the highest level on record, indicating a shift in social expectations regarding childcare responsibilities.

The number of employees taking childcare leave increased by 37% in the first half of 2025, with male participation alone rising by 54.3% year-on-year. This trend has been supported by a series of reforms, including requirements for employers to pay 100% of wages for up to six months following childbirth, the extension of parental leave to up to 18 months per parent, and mandatory public disclosure by listed companies of their family-friendly policies.

To mitigate the burden on employers, the government has increased subsidies for replacement workers to KRW 1.2 million per month and introduced additional support for companies implementing work-sharing arrangements. The total budget allocated to these measures amounts to KRW 4.4 trillion—the largest ever—underscoring the government’s commitment to advancing work–life balance.

Professor Hyobin Lee (Sogang University) notes that encouraging men to take parental leave is pivotal to narrowing gender gaps in the labor market. More equal distribution of childcare responsibilities significantly reduces the career risks faced by women following childbirth.

Jo Yong-beom, Deputy Director-General for Policy at the Ministry of Economy and Finance, stated:
“This year’s policies focus on mitigating household income loss during childcare leave and reducing the burden on corporations arising from employee leave, thereby positively reshaping perceptions of marriage and childbirth.”
He further added: “I believe the government’s policy intent has been effectively conveyed to the private sector through the largest investment of its kind in history.”

2.3. Challenges and Outlook

Despite emerging positive indicators, many experts remain cautious. Economist Park Saing-in (Seoul National University) argues that the current uptick may merely reflect a “post-pandemic rebound effect” rather than a fundamental shift in Korea’s social structure. High child-rearing costs, elevated housing prices, and intense educational pressures continue to pose significant barriers to childbirth.

In addition, the financial sustainability of subsidy programs remains a concern. Expenditure on maternity and parental leave benefits has increased by more than 56% to KRW 4 trillion, placing substantial strain on the employment insurance fund and requiring supplementary financing from general tax revenues.

Against this backdrop, researchers have proposed enhancing policy flexibility, particularly by allowing parental leave to be taken in shorter, segmented periods—a measure considered more compatible with the realities faced by men, who often encounter psychological or occupational barriers to extended absences.

In the long term, achieving a total fertility rate (TFR) of 2.1 will require a more comprehensive strategy, including addressing economic inequality, mitigating gender conflict, and potentially easing immigration policies as a complementary solution.

III. About NYLA – Korean Legal Office

■ NYLA – Your Trusted Legal Partner in Korea

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• Legal consultation on company establishment, taxation, and immigration;
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In addition to legal advisory, NYLA also represents clients in civil litigation cases related to business, labor, marriage, family, and inheritance to ensure their rights and interests are fully protected.

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