"Sampo saedae," or "Sampo" Generation. Some core K-pop fans may recognize it as part of the rap from BTS's "Dope," released in 2015. It’s a Korean word that defines those from the current young generation who inevitably decided to abandon three things in life — getting into a relationship, getting married and having children. High living costs, peaking housing prices and the tough job-searching process are the major turnoffs for young people.  

Speaking of not having children, Korea hit a record low of 0.72 in its fertility rate in 2023. The ultralow birthrate is shaking Korea in all dimensions imaginable, including the economy, society, health, entertainment and education. Schools are lacking students, health insurance costs are expected to surge, tax concerns arise and biggest of all, there aren’t enough babies to support the future elderly — us.  

Why is the nation speeding so fast toward depopulation? And how are the government and the individuals reacting to this social phenomenon? 

Why are people reluctant to have kids? No money, no mercy, no child 

1. No money 💲

The biggest reason for the hesitation to have a baby is that young couples simply cannot afford to. 

The financial burden of nurturing a child weighs heavily on Korea's childless married couples. They expect children to cost an average of 1.4 million won ($1,051) per month, according to a recent report.

Contrary to this monthly estimate of child-rearing, young adults have tight pockets. An average adult younger than 39 held assets of 363 million won ($271,808) in 2022 according to Statistics Korea.

Housing prices are another big issue. The average cost for jeonse, a lump sum deposit contract in Korea, is well over 100 million won ($75,182) in Seoul for a studio flat. Buying an actual house is out of the question, with the cost easily four or fivefold. Taking the average asset of the young generation into account, an average couple cannot afford jeonse let alone buy a house.

2. No mercy 🤰

Society is warming up to the idea of granting conditional advantages for parents — or is it?  

The low usage rate of parental leave in the country explains the struggle of juggling work and childcare.  

The reason behind the low usage rate boils down to these points: it's not easy to get a genuinely care-free parental leave, not to mention that it is hard to resume the role at work after returning from it. And the situation is worse for woman workers. 

According to a recent survey disclosed on March 4, approximately one in four female office workers in Korea face direct discrimination at work, particularly over pregnancy and childbirth. The discrimination translates to pressure to not have a marriage, pregnancy or childbirth, sometimes including coercion into signing labor contracts with these conditions becoming the reason for resignation.   

Although not as upright and aggressive, some also experience “passive-aggressive” discrimination such as being excluded from workplace benefits.

3. No child 🧑‍🤝‍👩

Currently, the fertility rate in Korea is 0.72 according to 2023 records from Statistics Korea, the lowest in the world. That means a Korean woman’s expected number of babies during her reproductive life is not even one. What's more, the number is a further drop from 0.78 in 2022. If such a phenomenon continues without a noticeable hike within 50 years, the population will reel back to that of 1977, with around 36 million down from the current 51 million.  

DINK (Double Income, No Kids) has become a common lifestyle among young and old couples. DINK refers to having no kids while continuing to work and make money as a couple. To avoid career opportunities crumbling, many Korean women are eager to carry on with the same work-life after marriage and not have kids. Adding to that, it is no rocket science to guess that the declaration of the DINK lifestyle may also come from exasperation and sarcasm of lacking financial background for a baby, given the overwhelming housing and education prices.  

Having a child is no longer a priority in the lives of young Koreans. In Korea, getting married is a precondition for having a child. As the living costs rise and the average age for jumping into the job market gets higher, the average age of marriage is being pushed back. According to 2022 statistics, 33.4 for men and 31.1 for women were the average ages of getting married (for the first time).

What are the consequences of the low birthrate? ⚠️

The future generation will have no option but to suffer the burden of labor shortages, high tax rates and insurance fees for supporting old or unemployed people. As the economically active population decreases, essential fields like manufacturing and the medical industry will have an insufficient labor force — an already rising problem.

Regions becoming extinct is another problem. The regional disparity is already a well-addressed issue, with departments at regional universities closing down as there aren’t enough admissions. Elementary and middle schools are lacking students too. Japan is the "pioneer" of this phenomenon, and Korea is tracing its footsteps of the aging population and regional deterioration.  

How is the government reacting? 🔊

President Yoon Suk-yeol has recently announced measures to support youths at the town hall meeting on March 5. Out of his many promises, tax benefits and savings programs might lift the burden of couples.  

1. Finance

Addressing the financial struggle as the main obstacle to having children, Yoon promised to fully exempt maternity allowances paid by companies to their workers to relieve the burden on companies and enable more employees to benefit.

While some companies like Booyoung Group came up with generous measures to incentivize childbirth by paying up to 100 million won in cash as maternity leave allowances to their employees, the public has recently criticized the taxes levied on such stipends as excessive. The government will now ensure employees are not taxed on maternity leave pay, while companies will also be able to deduct maternity allowances, reducing its corporate tax burden.   

The Finance Ministry also announced that it would amend the Income Tax Act to exempt income tax on maternity subsidies paid by companies to employees within two years of giving birth.  

Also, to help young people save a lump sum, the bars for the “Youth Leap” savings accounts have been eased so that more youths can sign up for the benefits. The Youth Leap account is a savings program introduced by the Yoon government as one of his campaign pledges to help young adults between 19 and 34 who make less than a specific annual salary to save up to 50 million won through monthly deposits over five years.  

2. Childcare support

Seoul is the city with the lowest fertility rate in the country, recording 0.59 last year. The Seoul Metropolitan Government unveiled policies to address this problem earlier last month. 

One of the new measures announced includes financially subsidizing child care services for a family’s eldest child when a second child is born. The service invites a caregiver home to look after children at or below the age of 12. 

More mothers in the capital will be subsidized for postpartum care as the requirement to have lived in the city for more than six months will be scrapped. Starting in April, the city government will also operate child care facilities for working parents.

The city government plans to construct apartment buildings that house multiple facilities, including nurseries and indoor playgrounds. Extending remote work hours for parents is another movement the government is planning. 

However, Korea's child care support is not limited only to Seoul, as Yoon plans to apply a nationwide caretaking system. 

To relieve parents' child care concerns, the government is running the Neulbom program across over 2,700 elementary schools nationwide. The Neulbom program is an integrated program combining after-school child care and education for students before and after classes. The program aims to alleviate the burden on working parents amid the country's low birthrate crisis. The program will eventually be available to all elementary school students by 2026.

Apart from the policy, what changes should be made in the society?

Policy is a physical measurement. For a society to change, there should be changes in perceptions.  

1. Active involvement — both mom and dad should be active caretakers when a baby is born! It is undeniable that women are expected to take the main role of the caregiver, doing housework and the essential chores that come with looking after a baby. There should be more working moms to lift the lingering social stigma that is holding couples back.  

2. No discrimination — parents should be able to spend time off work and invest more time at home, without feeling guilty or receiving disadvantages from work for doing so. Parental leave should become easier to use so that parents are saved from the burden of juggling everything.

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