South Korea recently announced a total fertility rate of 0.72 for the previous year, the lowest among OECD countries. This "population cliff" poses a significant social issue across various sectors.

A declining birth rate leads to a shrinking workforce, reducing domestic market size and causing an economic contraction. This, in turn, decreases GDP and increases reliance on imports. Additionally, a smaller population results in lower tax revenues, complicating the implementation of social policies.

The high cost of housing and education are the primary reasons for the low birth rate. They make it difficult for dual-income families to manage expenses. South Koreans also work significantly longer hours than the OECD average, further contributing to the issue. Cultural factors, such as societal expectations around family roles and the stigma of work-life balance, exacerbate these challenges.

While returning to previous fertility rates may be unrealistic, policies need to focus on long-term stability and the perspective of future generations. Instead of one-time payments for having (per) children, measures should support families' ongoing stability.

Enhanced parental leave, affordable childcare, and workplace flexibility are essential components of a comprehensive approach. Additionally, addressing gender inequality in both the workplace and home is crucial for creating an environment conducive to raising children.

L.L.F reporter Do-young Lee