South Korea recorded more deaths than births in 2020 for the first time, raising a new alarm in the country that already has the lowest birth rate in the world.
Only 275,800 babies were born last year, down 10% from 2019. About 307,764 people died.
The figures prompted the Interior Ministry to call for “fundamental changes” in its policies.
The population decline imposes immense pressure on the country.
In addition to increasing pressure on public spending with increasing demand for health and pension systems, the decline in the young population also leads to a shortage of labor that has 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.
According to the scheme, starting in 2022, each child born will receive a cash bonus of 2 million won ($ 1,850; £ 1,350) to help cover prenatal expenses, in addition to a monthly payment of 300,000 won until the baby turns one. The incentive will increase to 500,000 won every month starting in 2025.
What is behind the drop in the birth rate in South Korea?
Julie Yoon, Korean BBC
In large part, it is because in South Korea, women struggle to achieve a balance between work and other demands of life.
Hyun-yu Kim is one of them. The eldest of four children, she dreamed of having a large family of her own. But in the face of conditions that are not family-friendly in South Korea, she is reconsidering her plans to have children.
She recently took a new job and was looking forward to taking maternity leave. “People tell me it is safer to build my career first,” she told the BBC.
The rise in property prices is another big problem. Ms. Kim points out that the rapid rise in property prices also discourages young couples.
“To have children, you need to have your own home. But it has become an impossible dream in Korea.”
Nor is she convinced of the incentives offered by the government.
“It is expensive to raise a child. The government providing a few hundred thousand extra won will not solve our problems.”