As news of South Korea becoming extinct in the future goes viral, a big question arises, why are Koreans not having children? Here's the reason

South Korea has hogged the headlines after the news of it getting wiped off from the face of earth went viral. Indeed, there is something wrong in the Asia's fourth-largest economy.

South Korea's fertility rate, already the world's lowest, continued its dramatic decline. South Korea had previously projected its fertility rate is likely to fall further to 0.68 in 2024.

Demographic Crisis, Gender Pay Gap in South Korea

South Korea's demographic crisis has become the top risk to economic growth and the social welfare system. This comes as women concerned about their career advancement and the financial cost of raising children decided to delay childbirth or to not have babies.


Since 2018, South Korea has been the only Organisation for Economic Co-Operation and Development (OECD) member with a rate below 1, defying the billions of dollars spent by the country to try to reverse the trend that led the population to decline.

South Korea also has the worst gender pay gap in the OECD, as Korean women bring home about two-thirds of the income then men.

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Problem with Marriage, YOLO Lifestyle

Being married is seen as a prerequisite to having children in South Korea, but marriages are also declining in the country. "There are people who don't get married but we think about why married couples choose not to have babies, and my understanding is that addressing that part is going to be the focus of our policies (to boost the birth rate)," an official at Statistics Korea said.

Meanwhile, as South Korea scrambles to halt the sharp decline in its birth rate, policymakers are having a hard time convincing many in their 20s and 30s that parenthood is a better investment than stylish clothes or fancy restaurants, Reuters reported.

Sociologists say the lifestyle priorities of Koreans in their 20s and 30s - considered Generations Y and Z - mean they spend more and save less on average than the wider population or their peers in other countries, neither of which are conducive to nest building. It's all about you only live once (YOLO).

Not even South Korea's aggressive interest rate hikes over the past three years have been able to rein in youthful spending. The savings rate for those in their 30s declined to 28.5 per cent in the first quarter from 29.4 per cent five years ago, while that for all other age groups increased in the same period, Reuters reported citing South Korean central bank data.

At the same time, people in their 20s and 30s make up the biggest spenders at department stores and top-tier hotels while their travel spending rose to 40.1 per cent from 33.3 per cent in the past three years.

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With South Korea struggling with a rapidly ageing population, Seoul has also plunged into a political crisis. It seems that all is not well in the country that have mighty neighbours like China, Japan and North Korea.

FAQs

Q1. What is the capital of South Korea?
A1. Seoul is the capital of South Korea.

Q2. What is the full form of OECD?
A2. The full form of OECD is Organisation for Economic Co-Operation and Development.