South Korea’s world-record low birthrate, with a total fertility rate of 0.78 last year, has prompted the ruling People Power Party to consider unconventional measures, including exempting men who have three or more children before the age of 30 from mandatory military service. The number of births in January also marked an 86th consecutive month of decline on a year-on-year basis. Critics argue that such proposals are unrealistic and ineffective in addressing the root causes of low birthrate.
Another proposal under discussion is providing a monthly child allowance of 1 million won (approximately $765) for children from birth to age 18, which could amount to over 200 million won (more than $150,000) per child. The suggested policy changes have ignited debate across various online communities, with many expressing concerns that the benefits would be concentrated in certain classes and that the proposals are unrealistic.
Over the past 15 years, the South Korean government has spent 280 trillion won on measures to reduce the birth rate. However, only 2.8 trillion won of the total 50 trillion won annual budget is directly allocated to raising the fertility rate, a low figure even compared to other OECD countries. The remainder of the budget is assigned to low birthrate response projects such as the Child Abuse Prevention Project and the Defense Ministry Military Personnel Structure Reorganization Project.
President Yoon Suk-yeol has instructed the government to develop bold birthrate measures that the public can feel, and the Birthrate Commission will soon report on these measures to the presidential office.
In addition to the controversial military service exemption proposal, the ruling party has considered the introduction of a “Swedish-style parental leave system,” which requires men to take 90 days of parental leave. The party has also proposed increasing the current child allowance of 100,000 won per month for families raising children aged 0 to 8 years old to 1 million won per month up to age 18. This increase would bring South Korea in line with the 27 out of 38 OECD countries that provide child allowances after the age of 16.
Critics argue that the government’s proposed solutions do not adequately address the core issues contributing to the low birthrate, such as high housing costs, expensive childcare, and a competitive job market. To effectively tackle the low birthrate, experts suggest implementing a more comprehensive approach that includes improving work-life balance, offering more affordable housing options, and providing better support for working parents.
