South Korea’s Falling Population Why in news. For the first time in history, the number of deaths recorded in South Korea over the past year exceeded births, causing the country‘s population to decline. What is the current scenario? • In 2020, around 3.07 lakh people died in South Korea, and only 2.75 lakh babies were born. • The number of new births fell by 10% from 2019. • At the end of 2020, the country‘s population was less by 20,838 from the year before. • The growth rate of South Korea‘s population declined from 1.49% in 2010 to 0.05% by 2019. • If this trend continues, the government predicts that the population will drop from the current 5.18 crore to 3.9 crore by 2067. Consequently, 46% of people will be above 64 years of age. Why is South Korea’s population declining? • In many parts of the world, greater economic development and lower fertility rates often go hand in hand. • South Korea is a highly industrialised nation. • It already has the world‘s lowest birth rate at 0.92 as of 2019; the number represents the average number of children a woman has. • This figure is substantially lower than the fertility rate of 2.1 required for replacement of the existing population. o In India, the fertility rate is 2.2, as per 2019 figures. • Some of the reasons believed to be behind the low birth rate include reluctance to opt for maternity leave. • Another reason said is the high real estate prices, which dissuade young couples from buying a house and starting a family. What is the government response? • South Korea‘s government has said that it would bring in ―fundamental changes‖ to address this trend. • In December 2020, President Xxxx Xxx-in announced policies such as giving cash incentives for families. o The scheme, which starts in 2022, will provide a one-off payment of 2 million won (around Rs 1.35 lakh) for each child born, to help cover parental costs. • Until the baby turns one, the government will pay an additional 300,000 won (around Rs 20,000) every month. • After 2025, the incentive will be raised to 500,000 won (around Rs 34,000). Is a dwindling population always undesirable? • Dwindling population has mixed effects. • When the young population in a country declines, it creates labour shortages. • This would have a major detrimental impact on the economy. • More older people could also mean an increase in demands for healthcare and pensions. • This further burdens the country‘s social spending system when fewer people are working and contributing to it. • However, on the other hand, l...
