Despite the significant role of women entrepreneurs in South Korea's economy, they face gaps in government policies aimed at addressing the country's low birth rate. While employers are legally required to support employee maternity and childcare, women CEOs do not receive any maternity leave or pay when they give birth.
According to a report released on December 2023 by the Women’s Economic Research Institute, part of the Women’s Business Support Center, the number of women entrepreneurs in South Korea has reached 3.37 million, the highest ever, accounting for 40.6% of all businesses. The number of women entrepreneurs has been steadily increasing: 2.77 million in 2019, 2.95 million in 2020, 3.14 million in 2021, and 3.26 million in 2022.
However, the sense of exclusion among the 600,000 women CEOs who employ staff is growing. While general female workers, including freelancers not covered by employment insurance, can apply for government maternity benefits, women entrepreneurs running businesses with at least one employee are completely excluded from all maternity and childcare support programs.
A representative from the Women’s Business Support Center stated, "The issues surrounding maternity and childcare for women entrepreneurs should be viewed as management challenges that impact not only individual caregiving burdens but also the survival and sustainable growth of businesses. Many women-owned businesses are relatively small or centered around the owner, making it difficult to completely halt operations during maternity and childcare periods, and there are significant practical constraints in securing personnel to replace the owner’s duties and decision-making."
During the 5th Women Entrepreneurs Week, held from July 1 to 7, some women entrepreneurs voiced the need for maternity and childcare support programs. Additionally, a recent controversy involving retaliatory actions against employees on parental leave at IKEA Korea has sparked discussions about the establishment of such support systems.
The center emphasized the urgent need for tailored programs for women entrepreneurs, distinct from those designed for general workers. A representative noted, "We will establish legal grounds to extend the support period for women startup businesses to include the duration of maternity and childcare. We will also work to minimize management gaps by advocating for measures such as business suspension allowances and support for childcare and replacement personnel, engaging in ongoing dialogue with the National Assembly and the Small and Medium Business Ombudsman."
The government has begun to listen to these concerns. On July 9, the Low Birth Rate and Aging Society Committee met with representatives from small businesses and the SME sector to gather opinions, planning to actively consider these voices in future national population strategy development and continue policy communication.
* This article has been translated by AI.
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