Korea is facing an unprecedented demographic challenge, with the lowest fertility rate in the world. In 2023, the country’s total fertility rate was down to 0.72, reflecting a profound shift with far-reaching implications for the economy, labour market, and social structures.
At the heart of Korea’s demographic dilemma lies a sharp trade-off preventing both women and men from living balanced lives combining career and family. Korea has made significant strides in family policies over the years. However, they still fail to fully meet the diverse needs of working parents. Moreover, rigid gender norms and entrenched labour market practices further exacerbate these challenges, especially for women, who are often forced to choose between pursuing a career and raising a family. This book highlights that family policies can only reach their full potential when they are paired with efforts to make working hours shorter and more flexible and active promotion of gender equality in the workplace.
In response to this challenge, this book, a joint effort between the Korea Institute for Health and Social Affairs (KIHASA) and the Organisation for Economic Co-operation and Development (OECD), is a go-to reference for anyone trying to understand ultra-low fertility in Korea. It is also a good case study for anyone analysing falling fertility in different country contexts, as the underlying drivers are similar across the OECD and indeed globally.
The findings presented in this book are based on two OECD Economics Department Working Papers, produced jointly by KIHASA and OECD experts: Korea’s Unborn Future: Lessons from OECD Experience, and Women’s Employment and Fertility in South Korea: A Review of Recent Research. The book also draws on a special chapter in the 2024 OECD Economic Survey of Korea and material from the 2022 OECD Economic Survey of Korea. This collaborative effort represents the combined expertise of KIHASA, which brings deep insight into Korea’s demographic and societal challenges, and the OECD, which provides a broad, international perspective on policy solutions. The partnership underscores the value of global cooperation in tackling complex demographic challenges and developing effective policies that can be applied not only to Korea but also to other OECD member countries facing similar issues.
This book aims to promote informed and effective policy measures by identifying the root causes of low fertility in Korea. It advocates a future in which both men and women can achieve their career and family goals without compromise, in a country and a context where the joy of bringing children to the world and see them grow outweighs the costs and sacrifice involved. This should be a primary policy goal in and of itself, while dampening population decline and labour shortages and improving public finances are additional benefits.
Álvaro Pereira
Chief Economist, OECD
Hyekyu Kang
Vice President, Korea Institute for Health and Social Affairs