Demography is Destiny: South Korea Struggles as Fertility Rate Plummets Despite Massive Incentives

South Korea is grappling with an escalating demographic crisis as recent data revealed a stark decline in the country's birthrate, hitting a new record low in 2023. Despite extensive government efforts and billions of dollars invested in incentivizing families to have more children, the nation's fertility rate continues to plummet.

The latest figures from Statistics Korea, a government-affiliated body, paint a concerning picture, indicating that South Korea's birthrate – already the world's lowest – fell to a new low of 0.72 children per woman in 2023. According to a report from The Guardian, this represents a significant drop of nearly 8% from the previous year's rate of 0.78. With the average number of children falling well below the replacement rate of 2.1, South Korea's population of 51 million faces a bleak future if the trend persists.

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South Korea has been the sole member of the Organisation for Economic Co-Operation and Development (OECD) to maintain a fertility rate below 1 since 2018. Additionally, South Korean women are giving birth for the first time at an average age of 33.6, the highest among OECD nations.

Experts warn that if the current trend of low fertility rates continues, South Korea's population could nearly halve to 26.8 million by the year 2100. Lim Young-il, head of the population census division at Statistics Korea, underscored the severity of the situation, stating, "The number of newborns in 2023 was 230,000, which was 19,200 fewer than the year before, representing a 7.7% decrease."

Byproduct of an ailing culture which prioritises office over family?

Despite concerted efforts by successive governments, including the current administration led by President Yoon Suk Yeol, to reverse the declining birthrate, financial incentives and support programs have failed to sway couples. South Korean families cite daunting challenges such as soaring child-rearing costs, exorbitant property prices, a scarcity of well-paying jobs, and the country's intense education system as significant barriers to expanding their families.

Since 2006, the South Korean government has allocated over 360 trillion won ($270 billion) to various programs aimed at encouraging couples to have more children. Yet, these efforts have not yielded the desired results, as couples continue to grapple with the formidable obstacles hindering their decision to have larger families.

As South Korea faces the pressing reality of an aging population and shrinking workforce, policymakers are confronted with the urgent task of devising innovative solutions to address the root causes of the country's declining birthrate and secure its demographic future.