Newsnomics AJAY ANGELINA reporter |

South Korean government declared the “national emergency on population”, rolling out measures to expand cash support for newborn babies and reverse the declining birth rate trend announced by the president Yoon Suk-yeol on June 19,2024.

As the country is suffering with rapid decline in the newborn births hit a record low 0.76%, and is expected to drop to another fresh low of 0.68% in the other half of the year.

President Yoon said, “the population crisis caused by extremely low birth rates is the foremost and critical issue for South Korea.”

“The rapid population decline has now become a matter “prompting concerns about the very survival of South Korea “he added.

By knowing the urgency of the issue, South Korean government is establishing a new ministry “the Population Strategy Department, that has been pledged by President Yoon to create last month at his second presidential anniversary. The new ministry will serve as the Deputy Prime Minister for Social Affairs, to oversee the development of national strategies addressing population issues and broader social policies in education, labor and welfare to tackle the low birthrate.

In addition, a senior presidential secretary position will be formed that specifically is dedicated to tackling low birth rates.

To meet with the low fertility rate issues, South Korean government highlighted three core areas of improvement: 1) work-life balance, 2) child care and 3) housing.

In case of balancing between the work and personal life, the parents will be allowed with two weeks short-term child-care leave if the children fall sick. The fathers will be allowed with 20 days paternity leave rather than 10 days. In addition, fathers will be facilitated with more leaves during their wife's pregnancy under specific

conditions as well as after the birth of the child.

Yoon also aimed to increase the paternity leave usage rate from 6.8 % to 50% within his term and raise the female usage rate from 70% to 80%.

Moreover, for the initial three months, the child care leave pay cap will be raised to 2.5 million won instead of 1.5 million won that will be decrease to 2 million won in the subsequent three months and to 1.6 million won over the following six months. Not only that the government will provide monthly subsidy of increased 1.2 million won to support employers for hiring replacement workers.

Secondly, to achieve the aiming goal, the government will provide free education and care for children aged 3 to 5, will increase free program offerings and expand after-school programs to all elementary school grades nationwide by 2026. 

Addressing the shortage of domestic caregivers amid population decline and aging, South Korean government aims to significantly boost the availability of both public and private caregivers, targeting 300,000 house-holds by 2027. 

For this purpose, the government is recruiting 1,200 foreign domestic workers by the first half of next year, also giving an opportunity to foreign students and spouses of foreign workers to participate in care giving roles, with 5,000 individuals involved in the pilot program. The government will also take help from the private agencies to recruit, mediate and manage foreign caregivers from overseas to solve the issue.

Third, as per new policy President Yoon emphasized on government's commitment in expanding housing allocations for households with newborns to 120,000 units as well as developing new housing sites especially for newlyweds, families with newborns or multiple children.

South Korean government will also give access to home purchase and rental loans for the families with new-

borns and offer improved preferential interest rates for each birth. 

Furthermore, a new marriage tax deduction will be introduced and child tax deductions will be expanded to reduce financial barriers for young couple marriages.

President Yoon Suk-yeol held a meeting with Presidential Committee on Ageing Society and Population Policy, along with the representatives from the Finance Ministry and Welfare Ministry at the HD Hyundai Global R&D Centre in Bundang, Gyeonggi province.

The meeting was also attended by Lee Jung-sik, the Minister of Employment and Labor, Lee Ju-ho, the Education Minister, Park Sang-woo, the Minister of Land, Infrastructure and Transport, along with various representative policy stakeholders including working mothers, fathers of multiple children and representatives from corporate entities, such as Kwon Oh-gap, HD Hyundai Chairman and Chung Ki-sun, the Vice Chairman of HD Hyundai. 

The "emergency population response meeting" will be held every month by the population committee to review policies until the launch of the Population Strategy Department” said President Yoon.