South Korea has reported more deaths than births for the first time. This is a new warning to South Korea, which already has the lowest birth rate in the world. Only 275,800 babies were born last year, a 10% drop from 2019. About 307,764 people died that year (2020).
According to the latest data, there have been “fundamental changes” in the policies of the Ministry of the Interior. The declining population is putting tremendous pressure on a country. In addition to increasing pressure on government spending as demand for health care and pensions rises, declining youth populations are also contributing to the labor shortage, which directly affects the economy.
Last month, South Korean President Moon Jae-in launched a number of policies, including financial incentives for families, as a solution to the low birth rate problem. Under the scheme,
1.parents will receive a bonus of 2 million won(₩) ($ 1,850) to cover the expenses of each child born from 2022.
2.The child will also receive 300,000 won(₩) a month up to the age of year 1. The incentive is set to increase to 500,000 won(₩) a month from 2025.