In recent years, South Korea's aging population and declining fertility rate have become increasingly serious. Incheon Mayor Yoo Jung-bok recently released a "100 million + idream" policy, which stipulates that all newborns born in Incheon can receive a welfare subsidy of 100 million won (about 550,000 yuan). However, the ideal is abundant, but it has proved that boosting the fertility rate is not an easy task, and there are many challenges to face.
Notably, according to 2022 data, South Korea's total fertility rate is only 0.79, which is a record low. At this birth rate, the average South Korean couple will have only 0.79 children. It is becoming more and more common for young South Koreans to choose not to have children. It is predicted that if this low fertility rate continues, South Korea may become the first country in the world to "disappear naturally" due to a low birth rate by 2065.
According to a report released by Statistics Korea, if the current birth rate is maintained, South Korea's total population could fall to about 36.2 million by 2072, with nearly half of them aged 65 and above. At that time, South Korea will enter a super-aging society, and the structure of the labor force will change dramatically, becoming a serious threat to social stability and economic development.
South Korea's population peaked at 51.84 million in 2020, after which the number of deaths exceeded the number of births each year, according to the report. The number of newborns is expected to fall to 220,000 by 2025 and further to 160,000 by 2072. At the same time, the aging of the population is accelerating, with the proportion of people aged 65 and over increasing from 17.4% today to 47.7%.
The Bank of Korea released a report saying that if effective measures are not taken to boost the sluggish fertility rate, the South Korean economy may fall into negative growth in 2050. According to Bank of Korea's analysis, the main reasons for the low fertility rate include fierce competition, difficulties in finding jobs, high living costs, and concerns about the safety of children.
The sluggish fertility rate has had a profound impact on South Korea's economy. On the one hand, the decline in the number of workers will reduce the vitality and competitiveness of South Korea's economy, and on the other hand, the aging of the population will lead to many social problems, including increased demand for public services, increased burden on health care, and increased pressure on pension payments.
Faced with the challenges of low fertility and an aging population, the Korean government needs to take effective measures to address the root causes of the problem.
First, the government should encourage young people to have children through preferential policies, such as increasing welfare subsidies and alleviating the cost of childcare; second, the government also needs to reform the employment system to create more and better employment opportunities for young people so that they can afford to raise children; finally, adjust the social security system in a timely manner to ensure that the elderly receive adequate care and support, and at the same time prevent social problems caused by the aging population.
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