South Korea recorded more deaths than births for the first time in 2020, and this has again raised alarm in the country with the world’s lowest birth rate.
Only 275,800 babies were born last year, a decrease of 10% compared to 2019. About 307,764 people died.
The figures prompted the Interior Ministry to call for ‘fundamental changes’ in its policies.
A decline in population puts a tremendous strain on a country.
Apart from increased pressure on public spending as the demand for health care systems and pensions rises, a decline in the youth population also leads to labor shortages that have a direct impact on the economy.
Last month, President Moon Jae-in launched several policies aimed at addressing the low birth rate, including cash incentives for families.
Under the scheme, from 2022 each born child will receive a cash bonus of 2 million won ($ 1,850; £ 1,350) to help cover antenatal expenses, in addition to a monthly payment of 300,000 won distributed until the baby becomes one. The incentive will increase every month from 2025 to 500,000 won.
What is behind South Korea’s declining birth rate?
Julie Yoon, BBC Korean
This is largely because women in South Korea are struggling to find a balance between work and other life requirements.
Hyun-yu Kim is one of them. She was the eldest of four dreaming of having a family of her own. But faced with conditions that are not family-friendly in South Korea, she is reconsidering her plans to have children.
She recently accepted a new job and felt anxious to take time for maternity leave. “People tell me it’s safer to build my career first,” she told the BBC.
Rising real estate prices are another major problem. Ms Kim points out that rapidly rising property prices are also discouraging young couples.
“To have children, you have to have your own home. But it has become an impossible dream in Korea.”
She is also not convinced of the incentives offered by the government.
“It’s expensive to raise a child. The government that provides a few hundred thousand extra will not solve our problems. ‘