Working ladies the world over proceed to face wage inequality and a rollback in management illustration—and the “motherhood penalty” makes their profession success even tougher. As employer calls for power ladies within the U.S. out of the workforce, South Korean firms are stepping as much as higher the state of affairs for feminine expertise.
South Korean banks have rolled out a number of particular perks to keep up ladies staffers. Final 12 months, KB Kookmin Financial institution supplied a “parental resignation” program the place staff can take as much as three years of unpaid baby go away, and return to the job with the identical rank and place from earlier than—guaranteeing they don’t expertise profession setbacks from an extended break. Monetary group Woori supplied its staffers the same deal, with the cap set at two-and-a-half years. Different employers, like Shinhan Financial institution, additionally supply congratulatory “child bonuses” to its staffers.
Even international banks which have arrange store within the nation are making modifications; Citibank Korea was the primary firm to supply 4 weeks of paid paternity go away to ease the burden on working mother and father, and likewise created a Versatile Work System during which staff can apply for distant or flex time. Commonplace Charteredhas additionally applied 20 weeks of paid parental go away globally to all employees—no matter their gender.
To incentivize employees to have kids, some South Korean firms past the banking sector are additionally placing their cash the place their mouth is. Earlier this 12 months, South Korean building firm Booyoung Group introduced it could give 100 million Korean gained ($75,000) to every worker that has a child. The enterprise can also be serving to its mother or father staffers by aiding in school tuition for his or her children, expensing medical protection for direct relations, and shelling out on baby allowances. The perk is accessible to each working women and men among the many 2,500-person workforce.
Early outcomes are constructive
Thus far, it’s helped ladies keep within the labor power; South Korean ladies stick round at Korean banks for a mean of 14.5 years, in comparison with males who keep for 15.4 years, based on Seoul-based enterprise knowledge platform Leaders Index. And with ladies accounting for greater than half of the nation’s monetary sector workforce, it’s vital they maintain this expertise group within the loop.
Nonetheless, it must be famous that these working ladies nonetheless face stark variations on the job; South Korea nonetheless has the widest gender pay hole amongst rich international locations within the OECD, with ladies incomes 33.7% lower than males, regardless of boasting a stage of superior training above the common.
Whereas South Korean firms try and bridge the gender hole and maintain their prime performers, U.S. employers are shifting ahead with their very own insurance policies—regardless of the influence on its ladies employees.
South Korea and America’s methods with working mothers
South Korea and the U.S. are each dealing with one main long-term labor situation: birthrates are declining. As ladies have gained entry to larger training, unlocked prestigious jobs, and reprioritized their life objectives, many are opting out of motherhood. But additionally, funds are straining alternatives to start out a household; childcare prices have outpaced hire and mortgages within the U.S., the costs of on a regular basis items are skyrocketing, and the “motherhood penalty” can set ladies again $500,000 over the course of their careers.
The coverage response within the U.S. is essentially totally different from South Korea, although: U.S. firms are bringing down the hammer on working moms. Employers together with Amazon, JPMorgan, and Paramount Skydance have enforced strict return-to-office measures, leaving mother and father with a brand new burden. It’s a development that’s compelled tens of hundreds of American ladies—notably these with younger children—to up and go away the workforce. The labor power participation fee of ladies aged 25 to 44 caring for kids beneath 5 fell practically 3% between January and June 2025, falling to the bottom stage in over three years, based on an evaluation of federal knowledge by Misty Heggeness of the College of Kansas, a former federal economist.
The decline is even starker for the extremely educated, presumably extra prosperous cohort. The labor power participation of school‑educated moms caring for younger children fell to about 77% in August 2025 from practically 80% in 2023, whereas participation of fathers in comparable conditions edged up, based on a 2025 KPMG report. Girls with kids who’ve attained a bachelors or larger signify the biggest decline in labor power participation since 2023.
