South Korea's birthrate has reversed course for the first time in nine years, reaching 0.75 children per woman as of 2024, up from 0.72 the previous year. This notable increase, described as both driven by government policies and corporate incentives, marks the first rise since 2015 when the nation faced the world’s lowest fertility rate. Coupled with pandemic-related marriage surges, experts warn more reforms are necessary to maintain this growth.
Nam Hyun-jin, 35, mother of two, indicated significant changes when raising children today compared to her firstborn five years ago. "The society as a whole is encouraging childbirth more than five years ago when we had our first child," she remarked, crediting increased government aid and corporate programs. For example, Booyoung, her employer, has introduced generous bonuses for childbirth, providing as much as 100 million won (about $70,000) to staff.
The repercussions of South Korea's demographic crisis are stark, with projections indicating the population could halve by the end of the century if trends persist. Initiatives from the government, such as this year’s 19.7 trillion won investment (approximately $13.76 billion) to bolster work-family balance, childcare, and housing policies, are spotlighted as key interventions. You Hye-mi, presidential secretary for population policy, noted, "There is a high possibility of...further rises (in fertility rate) in coming years, and we are right at the inflection point," showcasing officials' optimism amid challenging circumstances.
Recent government actions tabled include doubling parental leave pay to 100% for up to six months when both parents take leave and extending periods of leave. Also noteworthy is the extended paternity leave from 10 to 20 days, which officials such as Choi Sang-mok, the acting president, highlight as necessary for nurturing family-friendly workplaces.
Echoing these sentiments, social experts argue the onus is now on companies to create family-supportive cultures. "Childcare systems are well established now at the societal level...but we still need companies to change to become more family-friendly," stated Jung Jae-hoon, professor of social welfare at Seoul Women's University. Without buy-in from the corporate sector, the policies may yield limited success.
On another front, South Korea is positioning itself as one of the world's leading players within the bio industry, as reaffirmed by Acting President Choi Sang-mok. Speaking during his visit to the Osong bio cluster, he pointed out the bio industry's current global valuation of roughly $2 trillion, placing it on par with major Korean industries like semiconductors and automobiles. Choi emphasized the importance of coordinated efforts between public and private sectors to create competitive advantages, especially against formidable opponents like the United States and China.
Advancing this initiative, he introduced the national bio committee aimed at establishing strategic frameworks by 2035 to support the growth of biotechnology. This infrastructure hopes to position South Korea not only as a formidable bio market but also as the leading manufacturer of contract development and manufacturing organizations (CDMOs). The ambition is to expand domestic CDMO production capacity by 2.5 times by 2032.
Adding to the momentum of growth, South Korea's automobile sector reported hybrid vehicle registrations surpassed the 2 million mark as of the end of 2024. This milestone demonstrates the country's impactful transition toward more eco-friendly transport solutions, driven by recent policy and societal shifts favoring sustainability. The cumulative total for eco-friendly vehicles also echoed this change, amounting to around 2,746,000 units, thereby accounting for over ten percent of registered cars.
Industry observers also predict continued strong demand for hybrid vehicles over the next few years amid shifting market dynamics. This is evidenced by the substantial increase of 482,349 hybrids registered just last year.
South Korea's relationship with its populace is now at a crossroads. Experts assert it's no longer merely about achieving higher birth rates or economic goals but fostering environments conducive to family integration and corporate commitment. It remains to be seen whether these concerted efforts can truly reshape South Korean society.
With the nation's aspirations to raise fertility rates to 1.0 by 2030—still below the 2.1 needed for population sustainability—the stakes are incredibly high. Every effort must not only aim to mitigate immediate concerns but also to embrace long-term systemic changes all across societal spectra.