| Title | [The New York Times] Filling the caregiving gap and solving the nation's demographic challenges | ||
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| Name | knf | ||
| Date | 2025-06-30 | Hit | 48 |
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[25.06.22]  In 2023, the Korean financial group has been playing a strong supportive role through the KRW 2 trillion ‘Win-Win Finance Season 1’, including interest cashback for small businesses. Last year, they pledged to support ‘Win-Win Finance Season 2’ worth 700 billion won (US$1.1 trillion) for the next three years, totaling 2.1 trillion won, to further solidify the value of win-win. Nevertheless, financial groups are realizing inclusive finance through customized financial solutions for sustainable growth of small businesses, revitalization of local economies, and voluntary participation in the fields of employment and care. We take a look at the efforts of financial groups as economic breakwaters, which go beyond one-off support to promote a mid- to long-term vision of building a virtuous ecosystem of shared prosperity. As South Korea's declining birthrate threatens the country's very existence, there is a need to expand private partnership models to solve the problem. In response, financial groups are taking the lead in solving the national challenge by actively participating in supporting childcare infrastructure to address the birthrate issue and narrow the regional disparities in childcare. KB Financial Group is strategically promoting social contributions centered on care and win-win. For example, since 2018, KB Financial has invested KRW 125 billion in the ‘Always Care School’ support project to bridge the care gap. This strategy reflects the fact that the number of elementary schools is increasing, but the demand for childcare still exceeds the supply. The program is aimed at cost-effectiveness through the expansion of elementary nursery schools and kindergarten facilities that utilize empty classrooms. The classrooms are designed to be student-friendly spaces with input from children, parents, and teachers. In addition to using eco-friendly materials and safe furniture, the space was organized to allow for various classes such as lectures, small group discussions, and individual learning. KB Financial is also focusing on expanding its ‘base-based care organizations’, which is one of the main projects of the spring school. A new model for solving the demand for childcare at the local level, the base-based childcare center provides integrated childcare and after-school services to students in need of care at the base. The center is open until 8 p.m. on weekdays and 1 p.m. on Saturdays, as well as during school vacations, so that working parents can leave their children with peace of mind. KB Financial plans to establish 48 such centers nationwide by 2027, starting with the opening of the first ‘Western-based Jilbom Center’ in Incheon and the ‘Dream Day Elementary Weekend Care Center’ in Jeju this year. In addition, KB Financial has expanded its childcare and maternity support policy for small businesses in cooperation with local governments across the country. Shinhan Financial Group is also presenting a social value creation model that can simultaneously solve childcare issues and respond to the declining birthrate. In June, Shinhan Financial signed a business agreement with the Seoul Metropolitan Government to promote a lifecycle support package to overcome the declining birthrate crisis, including marriage initiation, childbirth, and support for multi-child families. To begin with, Shinhan will co-host two meeting programs for unmarried men and women in May and November and support the cost of the events. To support the birth of a child, the company will open the “Birth Support Mall,” which offers up to 50% off on childcare products. For families with multiple children, Shinhan launched the ‘Shinhan Daedong Happiness Card’ and ‘Shinhan Daedong Win-Win Savings’ products. In addition, Shinhan Financial also operates the “40 Weeks, Mom Savings Account,” a win-win financial product that provides 300,000 won for birth celebrations. It is said to provide practical benefits to users who have given birth during the savings account holding period and has presented a model for responding to the declining birthrate through finance. Last year, the company signed a business agreement with the Low Birthrate and Elderly Social Committee and the Foundation for Cooperation in Agriculture and Fisheries, and contributed 10 billion won to the Win-Win Cooperation Fund to secure replacement workers for small and medium-sized enterprises. This is the first time Shinhan Financial has participated as a private company as part of the government's ‘measures to reverse the declining birthrate trend’. The contribution will be utilized to cover the cost of hiring replacement workers when SME workers take parental leave. In addition, Shinhan Financial has expanded the ‘Shinhan Dream Dotter’ program, a joint childcare sharing center operated with the Ministry of Gender Equality and Family, to 200 locations nationwide. Shinhan Dream Dotter is a social contribution program that supports after-school care for children of working families. The Shinhan Financial Hope Foundation has invested a total of 22 billion won in the project since 2018 and will invest an additional 9 billion won over the next three years to remodel facilities and operate specialized programs. In addition, since March, Shinhan Financial has converted two of the group's three workplace daycare centers into ‘win-win joint workplace daycare centers’. The centers provide childcare services to the children of workers at nearby SMEs, and a large company shares its infrastructure with nearby SMEs, providing an example of childcare cooperation between companies. Woori Financial Group has joined hands with medical institutions to solve the problem of low birthrate. In fact, on the 5th of this month, Woori signed a business agreement with Cha Hospital to jointly promote practical birth promotion programs such as supporting treatment for infertile couples. Cha Hospital will provide medical services to prepare for childbirth to employees of SMEs using WON Biz Plaza, a supply chain platform for businesses, including Woori Bank employees. Woori Bank plans to continue to expand the scope of cooperation with Cha Hospital in medical, welfare, and financial areas. In March, Woori launched a new child care social contribution program, ‘Children's Experience Road’ in Asan, Chungnam. The Children's Experience Road is a social contribution program jointly planned by Woori Bank and the Children's Future Foundation that provides high-quality experiential education for low-grade elementary school children and supports their safe commute to school through child-protected vehicles. To this end, in December last year, Woori Bank held a contest for child care and social welfare organizations in Asan to select participating organizations. The selected organizations will be provided with operating expenses for career and cultural experience programs for children, and one child protection vehicle will be provided to each organization. The vehicles were named WBI Dew Car, WBI Dream Car, and WBI Joy Car, using WBI's character 'WBI Friends' to enhance educational fun and child-friendly image. In addition, Woori Financial, through the Woori Financial Future Foundation, has been implementing the ‘Living Expenses Support Program for Young Unmarried Single Parents’ with the Ministry of Gender Equality and Family and the Catholic Archdiocese of Seoul since July last year. The program provides 200 single mothers aged 19 to 22 with 6 million won ($6,000) per year for living expenses, totaling 1.2 billion won. Hana Financial Group is the first in the financial sector to support the ‘365 Days a Year Hana Care Childcare Center’ to help bridge the care gap. It is available 24 hours a day, 7 days a week, 365 days a year, and is operated separately from the existing daycare program. It is also open from 9 a.m. to 6 p.m. on weekends and holidays. Hana Financial, in cooperation with the Ministry of Health and Welfare and local governments, plans to invest KRW 30 billion over the next five years to select a total of 50 daycare centers, including 47 weekend and holiday daycare centers and three 365-day daycare centers. The 365-day Hana Care Childcare Center is an extension of Hana Financial's ‘100 Childcare Center Construction Project’ that it has been promoting since 2018. Hana Financial has invested a total of KRW 150 billion over six years to support the construction of 100 daycare centers, including 90 public daycare centers and 10 workplace daycare centers. In particular, it has reflected the characteristics and demands of each region, including rural areas where there are concerns about depopulation, childcare facilities specializing in children with disabilities, and community-linked daycare centers. The project concluded in October last year with the completion of the 100th daycare center in Bonghwa-gun, Gyeongbuk. Hana Financial also operates the Hana Mom Care Center to create a childcare-friendly environment. It utilizes idle spaces within the group to provide nursing rooms and rest areas for pregnant mothers, and six centers are currently in operation. |
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