300 trillion won spent, still no change in low birthrate

South Korea＊s declining birthrate and aging population are occurring at a rate that is unprecedented in any other country in the world. Various measures are being taken, but it is still unclear whether the problem will be solved fundamentally. Developed countries have implemented various policies such as national parental leave and female employment to combat the declining birthrate, but the effects have been minimal. Sohn Hae-sung, aka Ganam, the longest-serving author of Korean high school textbooks, with more than 150 college and general education books on accounting principles and advanced cost management, has spent years researching and thinking about how to address the country＊s declining birthrate. ※The stagnation of South Korea＊s population has reached a critical state, directly affecting the country＊s competitiveness. I would like my opinion to be taken into account as a citizen. When I realized that we are spending trillions of won and not getting any results, I decided to research how to solve the declining birthrate§ said Sohn.

 

State financial support alone will not be enough to make a difference

To summarize what researchers and academics are saying about the current state of the birthrate, it goes something like this:

1. We must enable young people in their 20s to become independent and get married.

2. We must resolve the housing shortage, which is a barrier to marriage for young people.

3. We must reduce the financial burden of raising children.

4. We must reduce the phenomenon of women avoiding childbirth due to their entry into society.

5. We must provide careful support for childcare and education after childbirth.

 

Sohn pointed out that while the importance of addressing the declining birthrate and aging population is recognized, there are no specific policies to address the population cliff. In fact, the government has invested more than 300 trillion won to solve the problem, but as the latest Statistics Korea report shows, the country's fertility rate is still at the lowest level in the OECD (0.6). It's a point at which the very existence of the country could be jeopardized. “It is not advisable to try to solve all the causes of low birthrates with government financial support. Financial support alone will never solve the problem of low birth rates. Other countries have already provided ample financial support, but it hasn't solved the problem” said Sohn.

Singapore has offered incentives such as state-organized matches and prioritized housing for newlyweds, but it remains Asia's leading ultra-low birthrate country. “We need to analyze that the cause of the decline in birthrate is not solely due to poverty in the family economy, but it is also occurring among the wealthy” said Sohn. So what is his clear emphasis on the low birthrate solution? He said “The wrong direction from the beginning has resulted in a huge national budget with little effect. So far, birth control measures have been centered on married people, but there are many single people, so we need to shift to single people. Currently, the state's financial support is based on the premise of having a child after marriage, including pregnancy, childbirth, and childcare, so the state is paying back expenses that have already been paid, regardless of the birthrate.” 

 

Policies should be centered on newlyweds, not married couples

In fact, in Korea and Europe, all policies to address the declining birthrate are centered on married people. In his opinion, the needs of existing married people are becoming excessive and cannot be covered by state resources alone, and the declining birthrate should be addressed by focusing policies on recently married couples or brides and grooms-to-be. He said “The cause of the declining birthrate is a change in personal values due to economic development, something that most countries in the developed world have already experienced. Unfortunately, many scholars have utilized research data from developed countries, but have not been able to get clear results. This is because the researchers are centered on married people and are subjective, which makes their research ineffective. As mentioned in the beginning, the direction of research is wrong from the beginning, and the current misguided policies are not only failing to solve the declining birthrate, but are also distorting national finances. Reducing the number of single men and women is the key to addressing the declining birthrate, but there is little to nothing being done about it. Creating jobs for young people may be the key to solving the declining birthrate.” He argued that young people would have no reason not to marry if they were financially able to do so, and that the conditions for marriage require solutions to employment, housing, childcare, and education, starting with getting the workplace right by providing young people with special benefits for employment and housing issues and flexible working hours so that they can focus on childcare and education. He said “We need to follow the model of marrying first and being able to support a family even if you get a job later, rather than a social environment where the decision to marry is dependent on having a stable job. Young people should be encouraged to live with their parents until they are financially independent. Therefore, policies should actively encourage young couples to marry early by prioritizing employment. With the spread of nuclear families, young people are becoming more independent (40% are now single) even if they have a place to live with their parents, adding to the housing shortage. I think the way to solve this problem is to accelerate marriage. For example, in college, everyone has experienced postponing or giving up marriage due to problems such as employment, housing, childcare, even if they have the person to marry. It is urgent to reduce the number of single people by creating a social environment where they can get married. I believe that giving unemployed young adults who are unable to find a job a number of benefits after marriage at the national level will contribute to the creation of jobs for young people, as well as policies to encourage births. A declining marriage rate leads to a declining fertility rate.” The specifics of his solution to the declining birthrate will be published in a series of issues in the second half of PowerKorea.