In the previous year, South Korea had a total fertility rate of 0.72. Even in 2022, when the rate increased to 0.78, the situation remained dire. International media and scholars claimed that “Korea is doomed” and “the population decline is worse than the Black Death in the Middle Ages.” Ukraine is the only other country with a fertility rate in the 0.7s, but it is still at war. In 2020, South Korea achieved an unprecedented 0.8 fertility rate, but it has since dropped to 0.78. This year, it is expected to fall even further to 0.68, which would be below the 0.7 mark once again.
South Korea has the lowest fertility rate in human history, and its rapid population decline is being watched closely by the rest of the world. The population is expected to fall below 50 million by 2033, with the working-age population (15-64 years old) shrinking by 3.32 million in less than a decade. This demographic shift will lead to decreased tax revenues and increased spending on elderly welfare, healthcare, and other expenses, potentially leading to a fiscal collapse and endangering the country’s future. It is crucial for South Korea to take action to prevent this decline from happening.
Since 2006, the Korean government has announced a basic plan for a low birth rate and aging society every five years. Over the course of 16 years, they have spent a total of $ 209 billion (280 trillion won) in an attempt to stop the decline in the birthrate. However, their efforts have not been successful. Recently, some companies have started offering incentives of up to $74850 (100 million won) per child to their employees who have children. However, it is important to note that incentives alone will not be enough to boost the birth rate.
The reasons behind the world’s low birth rate are well-known. It is challenging to secure a job, buy a house, and manage childcare and professional life altogether. Additionally, the burden of private education for children has led to a trend that young people either choose not to marry or decide not to have kids at all. However, if South Korea fails to change the negative attitudes towards marriage, childbirth, and child-rearing, even the most effective solution will not be sufficient.
South Korea must adopt a birth-friendly perspective when designing all national policies, including jobs, real estate, childcare, education, and welfare. The country also needs to reduce the burden of childcare costs, which are currently among the highest in the world. Additionally, South Korea must make progress on pension, labor, and education reforms to provide young people with a glimmer of hope for the future. Despite the situation’s urgency, the country’s current measures to address the declining birthrate are ineffective. If this trend continues for another decade, the situation will become desperate and impact everyone.
