South Korea Fertility Rate Hits New Low Posing Challenges Economy and National Security
Record low Birthrate Triggers Concerns Over Aging Demographics and Socioeconomic Implications
South Korea has set a new global record for the lowest fertility rate, with the number of expected babies per woman dropping to 0.72 last year from 0.78 in 2022. The diminishing birthrate, alongside a 7.7% decline in the number of births to 230,000, is exacerbating concerns about the country’s aging population, impacting the medical system, social welfare provisions, and economic growth.
Aging Society Raises Fiscal Concerns
The declining birthrate in South Korea is accelerating the aging of its society, raising alarms about the impending fiscal burden on public pensions and healthcare. The reduced number of young people contributes to increased demand for medical services and welfare, while tax revenues decline.
Government Struggles with Demographic Challenges
President Yoon Suk Yeol’s government faces challenges in addressing demographic issues. Efforts to boost the number of medical students to alleviate a severe shortage of doctors have led to protests and resignations from trainee doctors, creating a standoff with potential repercussions ahead of parliamentary elections in April.
Economic and Security Implications
Beyond straining the medical system, the low fertility rate poses threats to South Korea’s long-term economic prosperity and dynamism by shrinking its workforce and slowing consumption. Bank of Korea Governor Rhee Chang-yong warns that the low birth proportion is already impacting growth potential. Additionally, a declining population could have implications for national security, affecting the size of the workforce and military capabilities.
Challenges of Population Decline Shared Globally
South Korea’s fertility challenges are not unique, mirroring similar issues faced by other developed countries. Factors contributing to the reluctance to have children include high housing costs, competitive education environments, and increasing gender tensions. Policymakers globally are grappling with finding effective measures to reverse population decline without resorting to extensive immigration policies.
Government Measures and Future Considerations
To address the demographic challenges, South Korea has introduced various measures, including increased allowances for parents of newborns, reduced mortgage interest rates, and plans to ease regulations on hiring foreign nannies. The government is also exploring options such as raising the retirement age, boosting workplace automation, and considering a city-sponsored matchmaking program to encourage marriages.
As urban sociology professor Shin In-chol emphasizes, addressing workforce shortfalls and adapting to aging populations are global challenges, requiring careful consideration of existing resources and potential immigration solutions. The trajectory of South Korea’s demographic landscape remains a critical aspect of its future socioeconomic stability.
