South Korea to Establish Ministry to Address Low Birth Rate Crisis

South Korea to Establish Ministry to Address Low Birth Rate Crisis

In a significant step to tackle South Korea's demographic challenge, President Yoon Suk Yeol announced the formation of a new ministry focused on addressing the country's low birth rate, which is currently the lowest globally.

South Korea's birth rate hit a record low last year, despite significant investments in programs aimed at encouraging childbirth and maintaining population levels. Country faces a huge demographic challenge: despite having one of the world's longest life expectancies, it also has one of the lowest birth rates. In 2023, the fertility rate dropped to just 0.72, down eight percent from the previous year.
This number is way below the replacement rate needed to keep South Korea's population of 51 million stable. If things don't change, experts predict that South Korea's population could almost halve by 2100, painting a worrying picture of decline.

South Korea has the lowest birth rate among OECD countries, sitting at just 0.72. Adding to the challenge is the fact that the average age for giving birth is 33.6 years, the highest in the organization. Despite spending a lot on incentives like cash rewards, childcare, and fertility treatments, the birth rate keeps dropping without slowing down.

In South Korea, more women are opting to have fewer or no children due to the soaring cost of living, especially affecting the younger generation. Meanwhile, marriage rates have dropped by over 35% in the past decade, with many South Koreans prioritizing their careers over starting families.

The fertility rate in South Korea currently stands at 0.78, well below the 2.1 rate necessary for population stability without migration. This trend poses significant challenges for the country's demographic future.

As fertility rates decline, countries are grappling with aging populations and shrinking workforces. With fewer young adults contributing to the workforce, economic growth slows down, posing challenges for governments in caring for their increasingly larger elderly population.

Previously, South Korea has taken proactive measures to counter the drop in births, offering a blueprint for other governments to follow. However, the ongoing difficulties faced by South Korea underscore the complexity of this global issue.

President Yoon's plan to create a special ministry to tackle the birth rate issue comes at a time of big political changes. His party recently lost ground in the general elections, but despite that, this new idea shows that the government recognizes the urgent need to take action against South Korea's shrinking population.

In short, despite efforts to encourage more childbirth through financial incentives, the high cost of raising children and changing societal priorities have hindered progress. This demographic shift poses economic risks, such as labour shortages and reduced economic growth potential.

South Korea's initiatives could serve as a model for other countries facing similar challenges. Current Government's plan marks a significant stride for South Korea, showcasing a dedication to securing a brighter tomorrow.