By Sagar V. Mankar 
KRAFTON, the developer of the popular game PUBG, plans to offer childbirth incentives of up to 100 million won ($75,800) to its employees, marking a significant step in addressing South Korea’s declining birth rate concerns.
According to ChosunBiz, the gaming company is reviewing a policy that would provide a one-time payment of 60 million won ($45,500) to employees upon childbirth, followed by annual payments of 5 million won ($3,800) for eight years. This brings the total support to 100 million won ($75,800) per child.
The initiative comes amid KRAFTON’s strong financial performance, with the company reporting its highest revenue of 2.7 trillion won ($1.9 billion) and operating profit of 1.2 trillion won ($811 million) in last year. This financial success has enabled the company to consider such substantial employee benefits.
The policy was reportedly championed by KRAFTON’s founder Byung-kyu Jang, who previously served as the Chairperson of the Fourth Industrial Revolution Commission. A company officials has confirmed that while the policy is under review, specific details will be announced at a later date.
This move by KRAFTON follows a similar precedent set by Booyoung Group, making it one of the first companies in South Korea’s gaming industry to offer such substantial childbirth incentives. The initiative gains particular significance considering South Korea’s current demographic challenges.
Recent data shows that South Korea faces one of the world’s lowest birth rates, with the fertility rate dropping to approximately 0.72 in 2023, far below the replacement level of 2.1 needed for population stability. While there was a modest 3% increase in births from January to November 2024, experts suggest that more comprehensive measures are needed to address this national concern.
The South Korean government has invested over $200 billion since 2006 in various initiatives to boost birth rates, including financial incentives and improved childcare services. However, challenges such as high housing costs, extended working hours, and significant education expenses continue to influence family planning decisions among young adults.
KRAFTON’s initiative represents a private sector response to this national challenge, potentially setting a new standard for corporate support of employees’ family planning decisions. The company is expected to finalize and announce the specific implementation details of this policy in the near future.