As U.S. women leave the workforce in droves, South Korean banks offer baby bonuses, flexible schedules, and child-raising sabbaticals – Fortune

Report on Corporate Policies and Sustainable Development Goals for Gender Equality and Decent Work

Introduction

Globally, working women face persistent challenges, including wage inequality and the “motherhood penalty,” which impede progress toward key Sustainable Development Goals (SDGs). This report analyzes contrasting corporate strategies in South Korea and the United States regarding the retention of female employees, particularly working mothers. It evaluates these strategies based on their alignment with SDG 5 (Gender Equality) and SDG 8 (Decent Work and Economic Growth).

Case Study: South Korean Corporate Initiatives

Alignment with SDG 5 and SDG 8

In response to workforce challenges, several South Korean corporations have implemented progressive policies aimed at retaining female talent. These initiatives directly support the achievement of SDG 5 by promoting gender equality and empowering women, and SDG 8 by fostering inclusive economic growth and decent work for all.

Specific Corporate Programs

A range of programs has been introduced, primarily within the financial sector, to support working parents and advance gender equality in the workplace.

• Extended Unpaid Leave: KB Kookmin Bank offers a “parental resignation” program, allowing employees up to three years of unpaid leave for childcare with a guarantee to return to their same rank and position. This policy directly addresses SDG 5.5 by ensuring women’s full participation and equal opportunities for leadership without career setbacks due to family responsibilities. Woori Financial Group offers a similar program of up to two-and-a-half years.
• Enhanced Parental Leave: Foreign banks have also contributed to this trend. Citibank Korea introduced four weeks of paid paternity leave to promote shared parental duties, a key component of SDG 5.4 (recognize and value unpaid care work). Standard Chartered has implemented a global policy of 20 weeks of paid parental leave for all employees, regardless of gender.
• Financial Incentives: To address declining birthrates, some companies provide direct financial support. Shinhan Bank offers “baby bonuses.” Beyond banking, Booyoung Group, a construction company, announced a payment of 100 million Korean won ($75,000) to employees for each baby born, in addition to other family support benefits.

Observed Outcomes and Remaining Challenges

Initial results indicate these policies contribute positively to female workforce retention. In Korean banks, women’s average tenure is 14.5 years, nearly matching the 15.4 years for men. However, significant challenges remain in achieving full gender equality.

• Persistent Gender Pay Gap: South Korea continues to have the widest gender pay gap among OECD countries, with women earning 33.7% less than men. This disparity is a major obstacle to achieving SDG 8.5 (equal pay for work of equal value) and SDG 10 (Reduced Inequalities).

Case Study: United States Corporate Policies

Divergence from SDG Principles

In contrast to the supportive measures in South Korea, many U.S. corporations are implementing policies that disproportionately affect working mothers and represent a setback for SDG 5 and SDG 8. The enforcement of strict return-to-office (RTO) mandates by companies like Amazon, JPMorgan, and Paramount Skydance is creating significant barriers for female employees with childcare responsibilities.

Impact of Return-to-Office (RTO) Mandates

The shift away from flexible work arrangements has had a measurable negative impact on women’s participation in the labor force.

1. Forced Workforce Exit: RTO mandates have been identified as a primary driver forcing tens of thousands of American women, particularly those with young children, to leave the workforce.
2. Decreased Labor Force Participation: Federal data analysis indicates a significant decline in female employment, undermining the principles of decent work and economic inclusion central to SDG 8.
   • The labor force participation rate for women aged 25 to 44 with children under 5 fell by nearly 3% between January and June 2025.
   • According to a 2025 KPMG report, the participation rate for college-educated mothers with young children fell from nearly 80% in 2023 to approximately 77% in August 2025.
3. Exacerbation of Inequality: This trend deepens the “motherhood penalty,” which can cost women an estimated $500,000 over their careers. This regression works directly against the goals of SDG 5 (Gender Equality) and SDG 1 (No Poverty).

Comparative Analysis and Conclusion

Contrasting Approaches to Shared Challenges

Both South Korea and the United States face long-term labor issues related to declining birthrates and the need to support working families. However, their corporate responses diverge significantly. South Korea is moving toward supportive, incentive-based models, whereas the U.S. trend is toward rigid mandates that penalize working mothers.

Implications for Sustainable Development Goals

The South Korean initiatives, while imperfect, demonstrate a corporate strategy more aligned with achieving SDG 5 and SDG 8 by actively working to retain women and support their career progression. Conversely, the RTO trend in the U.S. represents a significant regression, threatening to reverse progress on gender equality and women’s economic empowerment. This analysis underscores that corporate policies are a critical factor in either advancing or impeding the global 2030 Agenda for Sustainable Development.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 5: Gender Equality

  The article directly addresses gender equality by focusing on the challenges working women face, such as wage inequality, the “motherhood penalty,” and a “rollback in leadership representation.” It contrasts policies in South Korea designed to retain female talent with those in the U.S. that are forcing women out of the workforce, highlighting the global struggle for gender equality in the economic sphere.

• SDG 8: Decent Work and Economic Growth

  This goal is central to the article’s discussion of workplace conditions, labor rights, and economic participation. It examines issues like “equal pay for work of equal value” by citing South Korea’s wide gender pay gap. Furthermore, it explores corporate policies such as parental leave, flexible work arrangements, and financial bonuses, which are crucial for creating decent and secure working environments that promote full and productive employment for all, particularly working parents.

• SDG 10: Reduced Inequalities

  The article connects to this SDG by highlighting the economic inequalities faced by a specific demographic: working mothers. It details how the “motherhood penalty” creates a significant financial disadvantage for women, setting them back “$500,000 over the course of their careers.” The contrast between South Korean companies adopting supportive social protection policies and U.S. companies enforcing rigid policies that exacerbate these inequalities is a clear example of the issues addressed by SDG 10.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 5.4: Recognize and value unpaid care and domestic work through the provision of public services, infrastructure and social protection policies.

  The article provides several examples of corporate social protection policies aimed at supporting parents. These include the “parental resignation” program in South Korea offering up to three years of unpaid leave, Standard Chartered’s 20 weeks of paid parental leave, Citibank Korea’s four weeks of paid paternity leave, and the “Flexible Work System.” These policies are direct attempts to recognize and accommodate the caregiving responsibilities of employees.

• Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership.

  This target is addressed through the discussion of women’s labor force participation. The article notes that supportive policies in South Korea have helped women “stay in the labor force,” with their tenure being close to that of men. Conversely, it highlights how strict return-to-office mandates in the U.S. have forced “tens of thousands of American women… to leave the workforce,” directly hindering their full participation and potential for leadership.

• Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value.

  The article directly relates to this target by citing that South Korea has the “widest gender pay gap among wealthy countries in the OECD, with women earning 33.7% less than men.” This statistic explicitly points to the failure to achieve equal pay for work of equal value. The entire discussion around the “motherhood penalty” and women being forced out of jobs also speaks to the challenges of achieving full and productive employment for women.

• Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of… sex.

  The article illustrates the economic exclusion of women, particularly mothers, in the U.S. due to corporate policies. The analysis showing that the “labor force participation rate of women aged 25 to 44 taking care of children under 5 fell nearly 3%” demonstrates a clear trend of economic exclusion for this group, which is a central concern of this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Gender Pay Gap Percentage:

  The article explicitly states that in South Korea, “women earn 33.7% less than men.” This figure is a direct indicator for Target 8.5, measuring the disparity in earnings between genders.

• Labor Force Participation Rate (by gender and parental status):

  The article provides specific data points that serve as indicators for Target 5.5 and 10.2. It mentions the labor force participation rate of U.S. women with children under 5 “fell nearly 3% between January and June 2025” and that for college-educated mothers, it “fell to about 77% in August 2025 from nearly 80% in 2023.” These statistics measure women’s economic participation and exclusion.

• Duration and Type of Parental Leave Policies:

  The article describes specific policies that can be used as qualitative indicators for Target 5.4. Examples include “up to three years of unpaid child leave” (KB Kookmin Bank), “20 weeks of paid parental leave” (Standard Chartered), and “four weeks of paid paternity leave” (Citibank Korea). The existence and generosity of these policies measure the level of social protection offered.

• Financial Impact of Motherhood on Career Earnings:

  The mention that the “motherhood penalty” can “set women back $500,000 over the course of their careers” is a quantifiable indicator of the long-term economic inequality faced by women, relevant to Target 8.5 and SDG 10.

• Provision of Financial Incentives and Support for Parents:

  The article details cash incentives like the “100 million Korean won ($75,000) to each employee that has a baby” offered by Booyoung Group, as well as support for “college tuition for their kids” and “child allowances.” These are measurable indicators of corporate policies aimed at reducing the financial burden on parents, aligning with Target 5.4.

4. Table of SDGs, Targets, and Indicators

Source: aol.com