"Low Birthrate as a Cultural Phenomenon, Changing Perceptions Also Important"... Value System Reform Likely Included in Mid- to Long-Term Plans

Yang Seong-il, 1st Vice Minister of Health and Welfare, Reveals at Press Briefing
4th Basic Plan for 2021-2025 to be Announced Next Month

[Asia Economy Reporter Choi Dae-yeol] Despite pouring enormous financial resources, the birth rate, instead of improving, has been declining. A senior official from the Ministry of Health and Welfare, the main government agency in charge, attributed this partly to changes in individuals' values regarding marriage and childbirth. Alongside practical issues such as childcare and housing, the official stated that policies will be meticulously designed to also address these cultural factors. The government plans to release the 4th Basic Plan for Low Birthrate and Aging Society next month.

Yang Seong-il, the 1st Vice Minister of the Ministry of Health and Welfare, said on the 12th in a meeting with reporters, "In the past, the low birthrate problem was largely seen as an environmental issue, such as difficulties in childcare, but now the younger generation chooses marriage based on their individual values, reflecting a shift in societal values overall." He added, "Implementing government policies itself is a matter of great concern, and it is difficult to find clear solutions."

South Korea's low birthrate is severe even among countries belonging to the Organisation for Economic Co-operation and Development (OECD). According to the Ministry of Health and Welfare, the total fertility rate (an indicator representing the average number of children a woman is expected to have during her lifetime, calculated as the sum of age-specific fertility rates) dropped below 1 to 0.98 in 2018 and further declined to 0.92 last year. As of the second quarter of this year, it stands at 0.84. The problem is that there is no sign of improvement, and the rate of decline is steep.

Starting with the 1st Basic Plan in 2006, the currently applied 3rd Basic Plan for Low Birthrate and Aging Society is valid until the end of this year. The upcoming 4th Basic Plan, to be implemented from next year, is in its final stages, with consultations ongoing among related ministries including the Ministry of Health and Welfare and the Ministry of Strategy and Finance. The Basic Plan draws significant attention as it outlines the major direction and framework for detailed government-wide measures over the next five years.

Yang Seong-il, First Vice Minister of Health and Welfare

Meanwhile, the new plan intends to take a somewhat different approach from the past by including ways to promote positive values regarding marriage and childbirth. Vice Minister Yang said, "In the late 1990s, perceptions and culture regarding cremation changed and became widespread, which was largely due to cultural factors." He added, "Government policies must accompany environmental changes so that people can feel them, and we will ensure that we are not criticized for merely repeating existing measures."

Although meaningful discussions did not progress this year due to COVID-19, Vice Minister Yang emphasized the need for proactive leadership at the National Assembly level regarding pension reform. He said, "Pensions are a promise between generations, and such concerns must be delicately resolved." He added, "Currently, the government has officially proposed this to the National Assembly, and there is no change in the government's position. If pension reform discussions arise, they must ultimately be held in the National Assembly."

Regarding institutional flaws in the retroactive payment system (Chunap) and issues such as securing transparency in voting rights related to fund management, the government can approach and resolve these as technical matters. However, pension reform involves intertwined intergenerational interests and is a matter that overseas governments approach with political determination, making it difficult to handle easily. Nevertheless, according to relevant regulations, Vice Minister Yang believes that rather than the government presenting a single reform plan as demanded by the political sphere, it is necessary to gather broad consensus from the National Assembly and society at large.

On the recurring issue of child abuse, Vice Minister Yang stressed the need to assign dedicated officials to each local government by next year and enhance their expertise to establish the system as soon as possible. Since the government announced the Inclusive Nation Child Policy in May last year, it has strengthened frontline investigation systems through dedicated officials and established a unified support system via the Child Rights Protection Agency. Vice Minister Yang explained, "We are revising the salary and personnel systems to enable dedicated officials to work for a long time, while increasing budgets related to separation measures in cases of domestic abuse and subsequent care systems."

This content was produced with the assistance of AI translation services.