Lowest-Low Fertility and Policy Responses in South Korea

Abstract

Between 1960 and 2001, the total fertility rate (TFR) in South Korea dropped from 6.0 to 1.3 children per woman, and fertility has remained below 1.3 ever since. South Korea’s fertility decline is unique in three important ways—its speed, its magnitude, and the duration for which fertility has remained at a very low level. If this level of extreme low fertility persists and life expectancy continues to improve, people age 65 and above could account for 40 % of South Korea’s total population by 2060, one of the fastest rates of population aging in the world. After 2030, total population numbers will begin to decline. This process threatens the solvency of medical insurance and pension funds and has serious implications for the economy as a whole. In response, the South Korean government has initiated programs to make it easier for families to raise children while both parents pursue a career. The government has also made efforts to promote income security, healthcare, and an active lifestyle for the growing elderly population. Experience in other countries suggests, however, that low fertility rates can persist for years in spite of government policy efforts.