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1 DECLINING BIRTH RATES SOUTH KOREA 2 Contents DECLINING BIRTH RATES SOUTH KOREA ..................................................................................... 1 Introduction ............................................................................................................................................. 3 South Korean Demographic Challenge................................................................................................. 3 Causes of the Declining Birth Rate ........................................................................................................ 4 Economic Pressures ............................................................................................................................ 5 Work Culture ...................................................................................................................................... 6 Cultural and Societal Norms .............................................................................................................. 7 Futile Government Policies .................................................................................................................... 7 Financial Incentives ............................................................................................................................ 7 Parental Leave Policy ......................................................................................................................... 8 Housing Support ................................................................................................................................. 8 Recommendations to Boost South Korea’s Birth Rate ........................................................................ 8 Conclusion ............................................................................................................................................... 9 References .............................................................................................................................................. 11 3 Introduction Well nested in the southern half of the Korean Peninsula, is a beautiful country with a wealthy cultural heritage that is well-recognized as South Korea. For a country that has a well-established technology base with a bustling urban center, it has raised an alarming decline in birth rates. The country has a population of over 51 million citizens but for a couple of reasons, the rate of births has been declining (Lee, 2018). Apart from the population challenges, South Korea has one of the largest economies because of its investment in electronic appliances with automotive manufacturing that is exported to various parts of the world. Its therefore a home for the most advanced technological infrastructures in the universe and thus most of the time is utilized in working compared to siring. Seoul being the capital city of South Korea, has a metropolis that lends ancient traditions with a cutting edge to the latest modernity. Either way, it still does not meet the demographic challenge that South Korea is facing and which attempts to threaten future growth and stability. South Korean Demographic Challenge South Korea is currently under observation because of its alarming demographic crisis that is rapidly declining. As of 2021, the country was recording a fertility rate of 0.84 children per woman which is very low compared to the expected 4.2 children per woman. Therefore, it has reported the lowest record in the developed nations of the world and it is currently by far with a replacement level of 2.1. To put the situation into perspective, consider these figures: In 2016, South Korea's fertility rate was already a concern of 1.17 children per woman. By 2021, this number had fallen sharply to 0.84, marking a nearly 28% decrease in just five years (Trends, 2024). The figure dropped from 406,000 in 2016 to fewer than 300,000 in 2021. As much as the government has been announcing initiatives to try and cover the gap, it seems to not work or 4 people are assuming the measures. The current birth rate for South Korea in 2024 is 6.743 births per 1000 people, a 0.38% decline from 2023 (Jones, 2019). South Korean government has been implementing measures such as cash incentives for new parents and extending parental leave. According to the trend, it seems there are no signs of reversing. High living costs, especially in the urban areas have been limiting people from meeting the expectations. What’s worse is the demanding work culture that limits many young couples from starting new families. Additionally, the traditional gender roles and the exceptions of society have increased the burden. Therefore, as much as the government has intentions of increasing the efforts, there is more work that needs to be done to boost the birth rates. According to research, South Korea needs to focus on the complex interplay of economic, social, and cultural factors that need to be addressed to boost the demographic decline. Also, to make the government efforts more effective, it would be best to get the public opinion and record the personal reasons for the reduced birth rate. Eventually, South Korea will need to up its game to get a more developed number of children per woman. Hopefully, the research will give more detailed information on the current situation and how to solve the challenge. Since the 1960s, South Korea has been experiencing a life expectancy that is low and it becomes worse due to the significant increases in population aging (Kim, 2019). Causes of the Declining Birth Rate Recently, South Korea has experienced one of the most rapid demographic transitions in the world. Over the past half-century, the country has transitioned from a country with high birth rates and mortality to one with low birth rates and mortality (Choi, 2020). This transition has generated significant changes in society and the economy and has induced numerous public policy challenges. The demographic trends in South Korea today and in the future are 5 characterized by increasing life expectancy, low fertility, and advancing marriage, and divorce rates. Directly, these trends influence social and economic developments such as jobless households, aging of the population, social security, and a growing number of one-person households. They also indirectly affect housing-related industrial problems. Economic Pressures Every country has the pressure of wanting to be economically independent and to be in a position to handle every aspect of the country. However, it leads to the government putting pressure on their citizens to put in more effort and work harder to deliver and become more productive in the country. As a result, most countries increase taxes and make life unbearable by causing high standards of living and costly to survive in the country. Therefore, every citizen in the country is forced to do more and work harder to meet their daily needs. This description is the case of living in South Korea, especially in a city like Seoul (Seo, 2019). The significant population occupies these cities in the country and it is characterized by the extreme living costs. Housing, health, education, food, and childcare expenses are too high compared to other countries in the world. Therefore, it becomes financially exhausting for couples to even have the thought of getting a baby. The main thought will be how to keep the child and maintain their way of living when they get here yet it is already high for the parents. According to the 2022 report by the Korean Statistical Information Service, the average cost and standard of living of raising a child until they get to adulthood in Seoul is extremely high (KOSIS, 2022). The report suggests that it will cost a young couple 300 million KRW which is 250,000 USD. Therefore, before having thoughts of having a child, the couple needs to consider at least making half the amount to be able to meet the needs and commands that are needed to raise the child. 6 Having a child in South Korea keeps getting harder because as much as the cost of living in the country is high, it does not get any better with the status of employment. The competitive job market further exacerbates the financial insecurities. Young adult faces the pressure of securing not only a job but a well-paying job that will meet their financial demands. Youth employment in South Korea was rated at 8.6% in 2023 (Lim, 2021). This report shows how challenging the environment for young professionals is which makes it economically unstable to meet long-term commitments like parenting. Work Culture With the extreme lengths and demands for finances and meeting the living standards, there is a need for a specific work culture. South Korea has tight working schedules which demand long hours from their employees. Sustaining this work culture requires the citizens of the country to end up spending more time at work than at home. Therefore, employers require their staff to be at work more hours in the week compared to the required standard. As a result, by the time the employees get home, they are tired and even have limited time to spend with their partners. So, most of the time is set aside for work and little time to even rest. According to the OECD, South Korea has an average of 1,967 working hours in 2022. This record shows the highest among the OECD-registered countries (OECD, 2022). The government has made attempts to introduce family-friendly policies which include increasing parental leave. However, people have less time to be at home and when they are with family, there is a need for finances to meet the high cost of living. So, eventually, the individuals end up missing out the parental leave and choose to work instead. South Korean men take the opportunity due to the low fears of career stagnation and societal judgment. 7 Cultural and Societal Norms Society is part of the important aspects of a growing community in a country. However, traditional societal expectations are weighing down on the birth rate in South Korea. The traditional placement of gender roles is still applicable even in the modern society of the country. Women are constantly being subjected to heavy domestic responsibilities and being expected to manage both career and household duties. In 2021, there was a survey conducted by the Ministry of Gender Equality and Family that reported over 70% of women in South Korea are still subjected to the pressure of balancing work and family (Yoo, 2018). This pressure limited the decisions to get children. Moreover, there is a strong stigma against single motherhood and not having traditional family structures. Consequently, it discourages women from having children outside marriage. South Korean societies also maintain a preference for male children compared to females. This perspective has contributed to the low birth rates. Futile Government Policies Financial Incentives The low birth rates in South Korea have been so alarming that the government has made attempts to try and correct the demographic challenge. One major step is introducing financial incentives to encourage and increase birth rates. These incentives include cash bonuses to new parents and the government has also subsidized the childcare costs like baby products among others. Moreover, there is a one-time birth grant of 1 million KRW offered by the government to young parents and also monthly child allowances (Song, 2018). As much as these incentives are good and are meant to encourage parents to get children, it has not been working. It is because as much as the couple will have a solved financial situation, there are other factors like working hours and societal expectations that lead to the declined birth rate. 8 Parental Leave Policy The government introduced the parental leave policy. This policy was extended already but now it has been extended to 52 weeks and its paid leave. During this period, the couple is given enough time together and finances to sustain their time together. However, the impact has been limited which is different from the expectations. A study by the Koreans Women’s Development Institute which was conducted in 2023 showed less than 20% of eligible fathers have taken the opportunity (KWDI, 2023). Therefore, it shows that as much as the government has bridged the gap between finances and free time, some men are still clinging to the traditional measures and societal resistance. Moreover, some men are reluctant to share parental responsibilities so parental leave is not effective in South Korea. Housing Support South Korean government has gone to extreme lengths of implanting housing policy. Housing support is available for young families and it’s offered through subsidies and loans. Despite the government efforts to provide housing, the current cost of real estate is so high in urban areas and so it's still a barrier. As much as the couple may consider moving to more affordable rural areas, the problem is that jobs are more available in urban areas. Therefore, they need affordable living standards in the urban areas. A report conducted in 2021 by the Bank of Korea indicated that the price of houses in Seoul had risen by over 30% in one year (Lee, 2023). Therefore, it limits government support and becomes futile. Recommendations to Boost South Korea’s Birth Rate The declining birth rate in South Korea represents a significant demographic challenge that will be a problem to the future socio-economic stability. Addressing this issue will require significant approaches that will correct the identified barriers. As much as the government has implemented policies, they have proved to the futile which means the citizens need more than the incentives. 9 As much as there is housing support, the couple will eventually be required to pay because it is a loan. Therefore, the government can start by reducing the housing costs, especially in the urban cities. Alternatively, the housing cost can be the same but increase the child allowance from 100,000 KRW to 300,000 KRW. Korea Development Institute suggests that reduced housing costs by 10% will potentially increase the birth rate by 0.05 children per woman (Song, 2023). The government should also implement a subsidized childcare education system. Therefore, it will be affordable to raise one child and so the parents can be motivated to increase the number of children. OECD data in South Korea shows that the country spends 0.7% of its GDP on early childhood which is low compared to other countries like Sweden spending 1.6% of its GDP on early childhood education (Kee, 2020). The other recommendation is promoting work-life balance because as much as the incentives are increasing, the parents spend more time at work than at home. So, the government can introduce reasonable working hours and make it standard for all companies in South Korea. Social factors also need to be addressed because incentives and balanced work-life hours will not be enough when society still has traditional policies. Reducing gender disparity in both professional and domestic settings will help support women’s career advancement and encourage shared household responsibilities. Women will then have more time for themselves and men will start taking up parental leave so eventually, the fertility rate will improve. Conclusion South Korea's declining birth rate is a demographic challenge that is complex and requires comprehensive solutions. The decline was noticed as early as 2016 when the fertility rate was 1.17 children per woman and it fell drastically to 0.84 by 2021 which shows a 28% decrease. The 10 current birth rate for South Korea in 2024 is 6.743 births per 1000 people, a 0.38% decline from 2023. This decrease has been caused by various factors from economic challenges and sociocultural reasons to work-life imbalance. The government has made attempts to introduce policies and incentives but they have been futile because the fertility rates do not seem to change. However, the suggested recommendations such as reducing housing costs and reducing work hours may help to ease the demographic pressure. 11 References Choi, E. J., & Hwang, J. (2020). Transition of son preference: evidence from South Korea. Demography, 57(2), 627-652. Jones, G. W. (2019). Ultra-low fertility in East Asia: Policy responses and challenges. Asian Population Studies, 15(2), 131-149. Kee Whan Kim. (2020). Super aging in South Korea unstoppable but Mitigatable: A sub-national scale population projection for best policy planning. SpringerLink. https://link.springer.com/article/10.1007/s- Kim, J. H., Oh, S. S., Bae, S. W., Park, E. C., & Jang, S. I. (2019). Gender discrimination in the workplace: effects on pregnancy planning and childbirth among South Korean women. International journal of environmental research and public health, 16(15), 2672. KOSIS Korean statistical information service. (2022). KOSIS 국가통계포털. https://kosis.kr/eng/statisticsList/statisticsListIndex.do KWDI. (2023). Korean women's development institute. Korean Women's Development Institute. https://eng.kwdi.re.kr/about/message.do Lee Yeon-woo. (2023). 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Factors related to low birth rate among married women in Korea. PLoS one, 13(3), e-. Trends, M. (2024) South Korea birth rate-, MacroTrends. Available at: https://www.macrotrends.net/global-metrics/countries/KOR/south-korea/birthrate#:~:text=Chart%20and%20table%20of%20the,a%200.38%25%20decline%20from% 202023. (Accessed: 29 May 2024). Yoo, S. H., & Sobotka, T. (2018). Ultra-low fertility in South Korea: The role of the tempo effect. Demographic Research, 38, 549-576.