Woori Bank CEO Cho Byung-kyu, fourth from left, and Samsung Fire & Marine Insurance CEO Lee Mun-hwa, fifth from left, pose while commemorating the signing of their mutual business agreement, along with other key officials from the two companies, at the headquarters of Woori Bank, Friday. Courtesy of Woori Bank

Woori Bank and Samsung Fire & Marine Insurance have formed a strategic partnership to jointly address Korea's low birthrate crisis, the bank announced on Sunday.

As part of this partnership, the two companies have signed a business agreement to offer new insurance products and benefits to their customers.

Woori Bank has allocated 5 billion won ($3.61 million) in its support fund for public welfare to help to address low birthrate issues. The fund will be used to provide congratulatory money to expecting mothers who enroll in Samsung Fire & Marine Insurance's two insurance plans, designed for pregnant women, which were jointly created with Woori Bank.

One of the two insurance plans, Samsung Fire & Marine Insurance's Together Mom Preparation Safety Insurance, is available for free to any expecting mother. Those already with fetal insurance can also sign up for free. Expecting mothers who decide to purchase the Baby Insurance Woori Bank Plan — the second of the two plans — will receive up to 30,000 won in congratulatory money for the pregnancy.

Starting early next month, Woori Bank will introduce another celebratory event in addition to free insurance enrollment and money congratulating their pregnancy. Customers who open a new account for their newborn child born this year will receive a celebratory gift of 50,000 won.

"Woori Bank hopes that the products and services developed in collaboration with Samsung Fire & Marine Insurance will contribute to overcoming the country's low birthrate issue," said Woori Bank CEO Cho Byung-kyu. "We are committed to fulfilling our corporate social responsibility by swiftly implementing co-prosperity finance programs that provide direct benefits to the public," he said.

Since the 2000s, Korea's birthrate has significantly deteriorated, with the total fertility rate declining from 1.48 in 2000 to 1.23 in 2010, and further down to 0.72 in 2023.