via CNN:
In addition to the world’s lowest birthrate, South Korea has one of the world’s fastest aging populations. That has left it with a problem familiar to graying nations across the world, namely: how to fund the pension and health care needs of a growing pool of retirees on the tax income generated by a slowly vanishing pool of workers.
And South Korea’s problem is more acute than most.
Last year, its fertility rate dropped to a record low of 0.78 – not even half the 2.1 needed for a stable population and far below even that of Japan (1.3), currently the world’s grayest nation. (And even further below the United States, which at 1.6 faces aging problems of its own).
With young South Koreans already facing pressure on multiple fronts – from sky-high real estate costs and long working weeks to rising economic anxiety – critics of the zones say the last thing the country needs is yet one more thing to make them think twice about starting a family.
The government, they point out, should know this better than anyone. After all, it’s spent more than $200 billion over the past 16 years trying to encourage more people to have children. Critics suggest that, rather than throwing more money at the problem, it needs to work on changing society’s attitudes towards the young.
I’m not sure if there’s any one good solution to the low birthrate problem, but reducing tax and regulatory burdens to levels last seen when people were having two or more kids might be a good start.
h/t SG