What’s Behind South Korea’s Surge in Births? | Vantage on Firstpost

Summary

South Korea, once facing the world's lowest fertility rate, is witnessing a surprising shift with a surge in birth rates. After nearly a decade of decline, recent policies focusing on work-family balance, childcare, and housing have contributed to a rise in the fertility rate. Despite a still-low fertility rate of 0.75, the country is investing heavily in demographic recovery, offering long-term solutions like child allowances and tax reforms. While many countries, including China, have tried cash incentives with limited success, South Korea's approach aims to address structural issues, offering a model for others facing similar population crises.

Takeaways

• 😀 South Korea has experienced a dramatic shift in its birth rate, rising at its fastest pace in over three decades.
• 😀 The country's fertility rate is still critically low, at 0.75, far below the replacement rate of 2.1.
• 😀 The global fertility crisis is a major issue, with declining birth rates across many countries, including South Korea.
• 😀 Recent policies in South Korea have focused on work-family balance, child care, and housing, which have contributed to the recent rise in birth rates.
• 😀 These policies include paying 100% of salary for six months if both parents take parental leave, extending parental leave to 1.5 years, and mandatory child care reporting by companies.
• 😀 President Lee Jang has prioritized demographic recovery, proposing further initiatives like family-friendly tax reforms, child allowances, and debt relief for newlywed couples with children.
• 😀 South Korea plans to invest 14 billion dollars to boost its population, a 22% increase from the previous year's spending on demographics.
• 😀 The global fertility decline is causing labor shortages, slower economic growth, and aging populations, putting pressure on social welfare systems.
• 😀 Cash handouts or baby bonuses, common in many countries, have proven ineffective in reversing fertility declines, as seen in China and other nations.
• 😀 Structural issues such as the high cost of raising children (education, housing, and child care) need long-term solutions, not just financial incentives.

Q & A

What is the current global trend regarding fertility rates?

Fertility rates are declining globally, with many countries experiencing a drop in the average number of children born to women. This is contributing to population crises in several nations.

Which country has the lowest fertility rate in the world?

South Korea currently has the lowest fertility rate in the world.

What recent change has been observed in South Korea's fertility rate?

South Korea's fertility rate rose for the first time in 9 years in 2024, and the country's birth rate surged at its fastest pace in over three decades in April 2024.

What was the increase in the number of babies born in South Korea in April 2024 compared to the previous year?

In April 2024, the number of babies born in South Korea reached 20,717, which is an 8.7% increase from the same month in 2023.

What factors are contributing to the rise in South Korea's fertility rate?

Recent policies focused on work-family balance, child care, and housing have played a significant role in the rise of South Korea's fertility rate. These include salary payments for parental leave and extending parental leave to 1.5 years.

What are some of the key proposals by South Korea's new president to address the population crisis?

President Lee Jang has proposed expanding child allowances, introducing family-friendly tax reforms, and offering debt relief to newlywed couples, particularly those with children.

How much is South Korea planning to spend to address the population crisis?

South Korea plans to spend about 14 billion dollars to boost the population, which is a 22% increase from the previous year's demographic spending.

What is South Korea's current total fertility rate, and why is it concerning?

South Korea's total fertility rate stands at 0.75, which is well below the replacement rate of 2.1. This is concerning because it indicates a potential population decline without large-scale immigration.

What is the global fertility rate trend, according to the United Nations?

The United Nations reports that global fertility rates are in unprecedented decline, which is leading to fewer children, labor shortages, and slower economic growth in many countries.

Why have baby bonuses failed to reverse the fertility crisis in many countries?

Baby bonuses, or cash handouts, have failed to address the deeper structural issues such as financial burdens, unaffordable housing, and inadequate child care, which are the main reasons why people are choosing not to have children.