Renewing efforts are being made to prevent a demographic crisis that could harm the nation's growth in the economic welfare system because of South Koreans' career-high unwillingness to have children. The nation set a record for the lowest fertility rate in the world last year 2021, and several forecasts show that the population will decrease by half by the end of the century.
Even Elon Musk chimed in, calling the situation in Korea "dire." President Yoon Suk Yeol proposes to dramatically raise cash benefits for new parents, describing the fertility lows as a "calamity" for the country. However, Korean officials are facing a situation that a handout alone won't be able to fix, much like in other wealthy economies with severely low birth rates. The fertility rate in South Korea has increased in 2022 when compared to the previous year 2017, according to GlobalData.
Temporary financial assistance may not ease the concerns of women who are thinking about having children and the years of expenses associated. In any advanced economy, raising children is expensive. However, there is evidence that Korean parents invest more money in their children's futures than parents in other nations do. The cost of each child's education in Korea is the highest among the nations surveyed by the National Institute of Population and Social Security Research, which is based in Japan, after accounting for colleges and universities.
Finding a good home to live in is the biggest expense that opens the door to having children before paying for education. In Korea, building a little nest for a new family involves a sizable savings account or loan.
Low loan rates and government blunders have boosted the real estate market in recent years, causing housing prices to rise. If no loans are used, the average house in Seoul now requires about 18 years of average yearly wages, up from 10 years ago. These astronomical costs give couples another excuse to put off starting a family. The conflict between having children and working is felt by Korean women.
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