Chairman of South Korean builder Booyoung Group, Lee Joong-keun (L), joins a photo session with group employees who gave birth in 2024 after providing them with 100 million won (US$75,000) per birth, during a ceremony to mark the start of business for the new year at the company’s headquarters in Seoul, South Korea, 05 February 2025. File Photo by YONHAP/EPA
Dec. 22 (Asia Today) — Lee Jung-geun, founder and chairman of Booyoung Group, said businesses and the state must work together to address South Korea’s accelerating population decline and aging crisis.
Appearing on a recent broadcast program, Lee said his philanthropic efforts began with his core business of rental housing.
“When I built and donated an essential elementary school for a rental housing complex on the outskirts of a city, it became a win-win,” he said. “Homes sold well, students benefited, and I discovered the joy of giving.”
Lee pointed to his widely noted childbirth incentive policy, under which Booyoung pays employees 100 million won ($75,000) for each child born. He said the initiative was inspired by his study of the Constitution and has produced tangible results, with the company’s internal birth rate rising by about 10 percent since the policy was introduced.
Lee, who holds a doctorate in law from Korea University, cited constitutional principles in arguing that population policy is a matter of national survival.
“Article 37, Clause 2 of the Constitution allows the state to restrict certain rights for national security,” he said. “If the population continues to decline at this pace and there are no people left in 20 years, the existence of the nation itself becomes impossible. Encouraging childbirth is about safeguarding the country.”
As president of the Korea Senior Citizens Association, Lee also proposed structural reforms to address aging-related challenges. He suggested gradually raising the senior age threshold from 65 to 75 over the next decade.
“If the number of seniors reaches 20 million by 2050, the remaining workforce will be exhausted supporting them,” he said.
Instead, Lee proposed allowing older workers to remain economically active under a wage peak system, starting at age 65, with salaries gradually reduced from 40 percent to 20 percent of peak levels. He said seniors could continue working in advisory roles or specialized professional organizations, preserving productivity while easing pension burdens without displacing younger workers.
Lee also addressed elderly welfare and end-of-life care, saying many older adults prefer to spend their final years at home rather than in nursing facilities. He called for the introduction of a home-based end-of-life care system to reflect those wishes.
On housing policy, Lee stressed that homes should be treated as places to live rather than speculative assets.
“The state should supply roughly 30 percent permanent rental housing to ensure residential stability,” he said, arguing that preventing excessive price increases would allow citizens to live securely without fixating on homeownership.
– Reported by Asia Today; translated by UPI
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