Fertility rate plummets

Drastic steps needed to tackle record low birth rate

The persistent alarm over the nation’s declining fertility rate has resonated frequently. While many countries grapple with low birth rates and aging populations, the rapid decline in Korea’s fertility rate stands out. The speed of the fall is alarmingly swift. According to recent data from Statistics Korea, the country recorded its lowest quarterly fertility rate on record in the fourth quarter of last year, registering at 0.65. Furthermore, the fertility rate for all of 2023 stood at 0.72, marking a significant drop from 0.78 the previous year.

These figures are unprecedented lows for Korea, but the prediction for 2024 is not any better. By 2021 standards, Korea is the only country whose annual fertility rate fell below the one-child threshold among members of the Organization for Economic Cooperation and Development (OECD). It finds itself in an undesirable place, and Koreans are not interested in forming new families.

In a bid to shift that mindset, the government launched a new public campaign aimed at promoting the rewarding experience of parenthood. This campaign marks a stark departure from past initiatives that, decades ago, urged households to limit their family size to no more than two children, promising a future of perpetual happiness.

Korea will need a more detailed and tailored approach.

A confluence of factors, including a dearth of quality employment options for young adults, exorbitant housing and education costs, and the demanding nature of Korean culture, create significant hurdles for mothers or fathers seeking to take parental leave or adopt flexible work schedules. These challenges often force prospective couples to delay marriage and ultimately forego parenthood even after tying the knot. Figures announced Monday on population trends showed that the number of marriages nearly halved or dropped by 40 percent last year from a decade ago. The number of newborns in 2023 fell by 47.3 percent to 230,000 during the same period.

While Korea’s competitive culture has been instrumental in driving economic growth over the span of several decades, its enduring influence may now come at a social cost to the nation. The discontent among the populace is evident, as reflected in Korea’s life satisfaction rate of 6.5 out of 10 in 2022, to rank one of the lowest among the 38 member countries of the OECD.

If the declining birth rate persists without resolution, the nation’s central bank forecasts that Korea could experience a mere 0.5 percent economic growth rate by the year 2050. Furthermore, should this trend continue unchecked, the total population, which stood at 51.67 million in 2022, is projected to dwindle to 36.22 million by 2072.

The nation has poured in $290 billion since 2006 to increase its birth rate and tackle the challenges of an aging society. The measures taken so far are focused on cash dole outs, mostly at the time of a child’s birth. Both the child allowances and the wages offered during maternity leave are considered insufficient or meager. A recent proposal by a business group to provide 100 million won ($75,000) per expected child has been met with praise and applause, and President Yoon Suk Yeol vowed Tuesday to exempt taxes from such grants. But how feasible or advisable is it for other businesses to replicate such a bold initiative?

As a society, Korea must implement more comprehensive life-cycle-focused policies aimed at boosting the birth rate and supporting families through the various stages of childbearing, nursing, and education. These policies should be intricately detailed and tailored to address the specific needs of each phase, while also prioritizing the reduction of anxiety surrounding parenthood and the transmission of current societal values to future generations in Korea.

Various policies are being touted these days, with one notable example being the Swedish model, where parents are granted legally guaranteed child care leaves of up to 480 days to be shared between them. We should exercise caution against hasty implementation and instead undertake a thorough review of such policies, taking into account the distinct societal context of Korea. Furthermore, the Presidential Committee on Aging Society and Population Policy, which recently underwent a change in leadership, should prioritize the recruitment of young experts and actively seek feedback from the age groups most directly affected by its policies.