Seoul's Childbirth and Childcare Support for SMEs... Satisfaction: '98%'

More Corporate Support Spurs Parental Leave Use
97.5% of Participating Companies Say "Positive"
Corporate Grants Ease Labor Costs and Other Burdens
93% Say They "Help Promote Work-Life Balance"

Seoul’s support measures for childbirth and childcare at small and medium-sized enterprises are receiving high marks in the field. They have been found to ease the burden on businesses and positively promote a culture of work-life balance.

Seoul’s “Good Companies for Raising Children Support Program” supports Seoul-based small and medium-sized enterprises and their employees that offer family-friendly programs such as maternity leave and parental leave. Starting this year, the city has revamped the support system to not only provide individual support to employees but also ease the burden on companies that actually operate these programs through corporate grants.

Companies have responded positively. According to a survey conducted by the city of 283 participating companies, 97.5% of respondents gave a positive assessment of the shift in focus from employee-centered support to support for companies. Another 92.9% said the corporate grants had helped promote a culture of work-life balance.

Childbirth and childcare support programs are also being actively used. At 60.8% of participating companies, female employees took parental leave immediately after maternity leave. Companies where male employees took paternity leave accounted for 39.2%, while 14.1% of companies had male employees take parental leave after paternity leave.

Alongside the “Good Companies for Raising Children Support Program,” Seoul also launched a pilot program this year to support reduced working hours for parents with young children. Under the program, companies are eligible for a monthly grant of up to 300,000 won per employee if they support one hour of reduced working hours per day, helping parents with young children at small and medium-sized enterprises use the program without worrying about how they will be perceived.

The pilot program ran from April to June 2026 at 19 small and medium-sized enterprises and covered 46 employees with young children. The city provided companies with 300,000 won per employee per month for up to three months so employees with children aged 12 or younger, or in sixth grade or below, could reduce their working hours by one hour a day without a pay cut.

An analysis of the pilot program’s effectiveness over the three months found that weekday hands-on childcare time increased from 3.37 hours to 3.58 hours before and after the program, giving families more time together. Life satisfaction also rose from 6.58 points to 7.53 points on a 10-point scale. Although working hours were reduced, time spent focused on work actually increased, from 5.21 hours to 5.32 hours.

Men’s participation in childcare also stood out. Six out of 10 employees who used the “Reduced Working Hours Program for Parents with Young Children” were men (61%), making the program a catalyst for encouraging fathers’ involvement in childcare and a culture of shared caregiving. In addition, middle managers and above, who hold significant influence within their organizations, accounted for a high 65.2% of all participants, raising expectations that the program will take root and expand.

With the benefits of support for companies now confirmed, Seoul plans to expand the “Good Companies for Raising Children Support Program” next year, in 2027. The city expects this to help establish support programs at companies that meet the needs of employees with children at different stages of their lives, from maternity leave and parental leave to reduced working hours after returning to work.

“The cumulative number of births in Seoul this year has risen significantly from the previous year, and the rebound in the birth rate is continuing. To sustain this trend, a culture of work-life balance must take root, and companies are at the center of that effort,” said Ma Chae-sook, head of the Seoul Metropolitan Government’s Women and Family Affairs Office. “Now that we have seen positive changes for both companies and employees, we will strengthen our support to create family-friendly workplaces.”

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