The Problem of Decreasing Population and Countermeasures Sluggish Economic Vitality The biggest problem in Korea is sluggish economic vitality caused by a decreasing population. The shrinking population means there are fewer people to produce and consume goods. Also, as the population ages, the number of people depending on public support is increasing, this is putting a heavy burden on the country through a chronic deficit in the national budget and soaring social costs of companies. This in turn leads to a loss of economic vitality and a further reduction in the labor force as well qualified workers seek out better opportunities in other countries. The National Identity Problem In a capitalized society, the economy is the number one priority. So if the economy goes bad, it gets harder to forge a national identity through patriotism alone. There is no reason for the more-educated generation to remain in a country suffering from difficulties. Consequently, educated workers leaving for other countries can even threaten the very existence of a country. Increasing Social Problems The first problem is imbalance of supply and demand in the labor market. The high rate of youth unemployment also adds to the sluggish economy. In addition, the problem of marriage is serious. There are more men than women in Korea. The gap is even bigger with the younger generation. In other words, the number of women 3-5 years younger than men is short by 20 percent, compared to that of men. This causes marriage problems and an increasing number of multi-cultural families. Countermeasures Practical Childbirth Policy Rather than showy measures such as giving a childbirth grant, well thought out and practical policies are needed to promote an increase in the birth rate.. Currently, child-care is the biggest problem facing working parents, so an expansion of daycare facilities in workplaces should be legalized. On top of that, supporting measures for barren couples such as medical insurance benefits related to in vitro fertilization (IVF) are an imperative. Tax Benefits It is also problematic that childcare costs and taxes of workers and owner-operators are too much compared to more advanced welfare states. At present, the welfare benefits for working parents are not increasing. A significant rise in taxation undermines the will to work and start a family. A policy that lowers taxation for families with young children should be implemented in order to free people of worry, fear and burden about childbirth. Countermeasures Practical Childbirth Policy Rather than showy measures such as giving a childbirth grant, well thought out and practical policies are needed to promote an increase in the birth rate.. Currently, child-care is the biggest problem facing working parents, so an expansion of daycare facilities in workplaces should be legalized. On top of that, supporting measures for barren couples such as medical insurance benefits related to in vitro fertilization (IVF) are an imperative. Tax Benefits It is also problematic that childcare costs and taxes of workers and owner-operators are too much compared to more advanced welfare states. At present, the welfare benefits for working parents are not increasing. A significant rise in taxation undermines the will to work and start a family. A policy that lowers taxation for families with young children should be implemented in order to free people of worry, fear and burden about childbirth.
Ju-Hyun Park  l.l.f@hanmail.net