South Korea has introduced a new initiative offering residents up to $35,000 to encourage dating, marriage, and childbearing.
This move is part of a broader strategy aimed at reversing South Korea’s position as the country with the world’s lowest fertility rate, a trend that has been steadily declining for years.
In 2022, the country’s fertility rate reached a historic low of 0.78 for the first time, significantly below the replacement rate of 2.1 children per woman. With fewer people marrying and having children, the government has been compelled to take drastic measures.
High housing costs, career pressures, and the rising expenses associated with childrearing have been major deterrents for young South Koreans, contributing to the declining birth rate. Although the number of marriages in South Korea increased slightly in 2023 for the first time since 2013, experts argue that this is not enough to create a sustained rebound.
To combat these trends, the South Korean government is offering various financial incentives, including up to $35,000 for those who date and marry. Other benefits include increased support for childcare, expanded maternity and paternity leave, and subsidised housing for young couples.
This initiative is part of a broader set of “extraordinary measures” promised by the government to address the demographic crisis. These measures include more public housing and easier access to loans for young couples to alleviate the financial burden of marriage and parenthood.
The success of this programme is crucial for South Korea’s future. A shrinking population not only poses economic challenges, such as a declining workforce, but also puts a strain on social services due to an increasing elderly population. Through this new initiative, the government aims to make South Korea more family-friendly and to encourage its younger generation to marry and start families.
However, experts caution that financial incentives alone may not be sufficient. Cultural changes, including shifts in societal perceptions of marriage and gender roles, along with long-term economic security, are also key to reversing this trend.
In addition to these measures, South Korea is considering increasing immigration to offset the declining birth rate.
While this is a bold initiative, it represents only one piece of the puzzle in addressing South Korea’s demographic challenges. In the long term, a combination of financial incentives, cultural change, and potentially a more open immigration policy will be required to achieve balanced and sustainable population growth.
