South Korea's Fertility Rate Hits Record Low, Prompts Government Response to Population Decline

In 2023, South Korea witnessed a further decline in its already lowest fertility rate in the world. The number of newborns dropped to 230,000, marking a 7.7% decrease from the previous year. This decline brought the total fertility rate down to a mere 0.72, showing a significant decrease from 0.78 in the previous year. Lim Young-il, head of the vital statistics division at Statistics Korea, made this announcement on February 27, 2023.

Factors Contributing to Decline

Experts attribute the decline in childbirth to several factors such as concerns about career advancement and the financial burdens of raising children. The trend of delaying childbirth or opting not to have children altogether has been observed among women due to worries about balancing work and family responsibilities. Office worker Kim Seul-ki expressed concerns about the current work environment, stating that it poses challenges for women to take time off to care for their sick children, thus impacting their careers.

Government Efforts and Economic Impact

Despite significant investments exceeding $270 billion in childcare subsidies since 2006, the decline in childbirth has persisted, leading to a fourth consecutive year of population decline in 2023. This demographic crisis has emerged as a critical risk to South Korea's economic growth and social welfare system, with the country's population of 51 million projected to halve by the end of the century. Additionally, South Korea is anticipating a further dip in the fertility rate, with projections indicating a potential decline to 0.68 in 2024. In response to these challenges, major political parties in South Korea have pledged to introduce measures such as increased public housing and easier access to loans to address the declining fertility rates and allay fears of "national extinction."

Regional Trends

South Korea is not the only country in the region grappling with a shrinking and aging population. Neighboring Japan also reported a continued decrease in the number of newborns in 2023, marking the eighth consecutive year of decline and setting a new record low. Japan's fertility rate hit a record low of 1.26 in 2022, while China recorded a rate of 1.09, also marking a record low.