What is the current state of South Korea’s low birth rate?
According to the 2021 country-by-country fertility rate statistics released by the OECD, South Korea’s fertility rate stands at 0.81 children per woman, classifying it as a society with an ultra-low birth rate. To maintain the current population, the total fertility rate must be in the 2.0 range, but the rate continues to decline. Although the government has invested 200 trillion won in measures to address low birth rates—starting with the enactment of the Framework Act on Low Birth Rate and Aging Society in 2005—the problem of low birth rates remains unresolved. Meanwhile, the number of births in 2022, as reported by Statistics Korea, was 249,186—a sharp 4.4% decline from the previous year—and the total fertility rate stood at 0.78 children per woman, indicating that the low birth rate phenomenon is accelerating.
Policy Issues for Addressing the Low Birth Rate
To address the extremely low birth rate, the Presidential Committee on Low Birth Rate and Aging Society announced on March 28, 2023, that its first set of measures would include comprehensive policies such as childcare education, work-life balance, and housing policies. In particular, the committee decided to relax eligibility requirements for special allocation programs for families with multiple children—such as public housing converted to for-sale units—from the current requirement of three children to two children, and to provide benefits such as exemptions and reductions in acquisition tax on vehicle purchases, as well as discounts on cultural facility admission fees. Meanwhile, during the campaign period for the 22nd National Assembly election, both the ruling and opposition parties put forward pledges related to the low birth rate.
First, the ruling People Power Party put forward campaign pledges such as making maternity and paternity leave mandatory, establishing a Ministry of Population at the deputy prime minister level, and implementing flexible work arrangements during child-rearing years. Next, the main opposition Democratic Party of Korea proposed pledges including 100 million won in loans for newlyweds, the provision of public rental housing, and 500,000 won in parental leave benefits. As seen here, the fact that both the ruling and opposition parties made measures to address the low birth rate a key campaign pledge in the recent 22nd general election demonstrates the policy’s significance. In particular, both parties pledged to establish a Ministry of Population to develop countermeasures against population decline. However, there are also skeptical views that the creation of a Ministry of Population alone will not provide a fundamental solution to the low birth rate problem. Nevertheless, the fact that both the ruling and opposition parties agree on the need for a government ministry to comprehensively address the issues of low birth rates and population decline serves as proof of the severity of these problems in South Korea.
The Reality of Having to Walk on Eggshells When Taking Maternity or Parental Leave: The Gap with Government Policy Only Widens
An interesting finding emerged from the 2022 Social Survey conducted by Statistics Korea among unmarried men and women: 18.7% responded that they do not feel the need to marry and therefore choose not to. Furthermore, in a poll conducted on the workplace community platform Blind regarding promotions and childbirth, 165 out of 311 respondents (53%) chose to have a child at age 32 even if it meant a delayed promotion, while 146 (47%) chose to get promoted first and then have a child at age 35.
Regarding blind voting, one office worker said, “Honestly, I think it’s difficult to get promoted after having a baby,” adding, “It’s less stressful to return to work after having a baby once I’ve been promoted and established a solid foundation.”
Although “creating an environment where people can have and raise children” is said to be the solution to the low birthrate problem, the fact that employees must worry about how their colleagues will react or even postpone having children in order to take parental or maternity leave at work only widens the gap between government policy and the reality people experience. For example, while over 95% of small and medium-sized enterprises (SMEs) with 300 or more employees allow employees to take parental leave when needed, only half of those with fewer than 30 employees do so. Furthermore, although the government provides 800,000 won in subsidies to cover the cost of temporary replacement staff during parental leave, it is reported that in many cases, companies are unable to find such replacements. Given the contrast between the welfare policies of some large corporations—such as 100 million won in support upon childbirth—and the reality that small and medium-sized enterprises are unable to fully utilize existing systems, it is unlikely that the underlying trend of low birth rates will be resolved.
