The Flood of 'Low Birthrate Measures'... How Realistic Are They?

Consideration of Differential Application of Military Service Exemption and Gift Tax
"No Legislative Debate... Just an Idea" Explanation

As the low birthrate phenomenon intensifies, the political sphere is flooding with related measures, but it seems difficult for them to become a sharp solution to the problem. This is because criticism that the measures lack "realism" pours in as soon as various policies are proposed, leading to unnecessary controversies.

Recently, it was revealed that the People Power Party considered low birthrate measures such as exempting military service for those who have three or more children before the age of 30. However, since the average age of first marriage has already surpassed the 30s, this was criticized as unrealistic.

The photo is not related to the specific content of the article. Photo by Yonhap News.

The People Power Party is also known to have considered applying gift tax differentially according to the number of children. The more children the parents have, the lower the gift tax on the inheritance received from grandparents, with tax exemptions up to 100 million KRW for parents with one child, 200 million KRW for parents with two children, and 400 million KRW for parents with three children. However, this too was pointed out as a plan designed to favor the wealthy.

Seong Il-jong, a member of the People Power Party, explained that it was "at the idea level." On the 27th, on SBS Radio's "Kim Tae-hyun's Political Show," Seong said, "(Low birthrate) is a problem of the nation disappearing, and we are now facing an issue that the people must all think about." He added, "So many ideas are coming out now," and "There has been no legislative or budgetary discussion."

In the opposition camp, a bill for "low-wage foreign domestic helpers" was withdrawn after heavy criticism but was reintroduced. On the 21st, Jo Jung-hoon of the Transition Korea party officially proposed a bill (Partial Amendment to the Act on Improvement of Employment of Domestic Workers) to introduce foreign domestic helpers exempt from minimum wage application.

The amendment aims to exclude foreign domestic workers from minimum wage application for a minimum of 3 years and a maximum of 5 years, with the intention of helping balance work and family life by employing foreign domestic helpers for about 1 million KRW per month, addressing the low birthrate issue and women's career interruptions. Singapore, for example, has encouraged and supported women's economic activities by introducing a low-wage foreign domestic worker system since 1978.

However, it was criticized as a "modern-day slavery system." The spokesperson for the Justice Party, Wison, said on the 21st, "Jo's amendment is a bill for labor exploitation of foreign domestic workers," and criticized, "We cannot tolerate the legalization of labor exploitation based on racial discrimination in Korea."

As criticism surged, two Democratic Party members, Kim Min-seok and Lee Jung-moon, who participated in the proposal, withdrew, and the bill fell short of the minimum requirement of "consent from more than 10 members." However, it was reintroduced with the participation of People Power Party members Kwon Seong-dong and Jo Soo-jin as proposers.

President Yoon Suk-yeol is speaking at a luncheon for welfare and labor field workers held on the 23rd at the Blue House State Guest House. Photo by Yonhap News

Meanwhile, according to the "2022 Birth and Death Statistics" announced by Statistics Korea on the 22nd of last month, Korea's total fertility rate last year was 0.78, the lowest among the 38 member countries of the Organisation for Economic Co-operation and Development (OECD). This is less than half of the OECD average total fertility rate of 1.59. Since enacting the Framework Act on Low Birthrate and Aging Society in 2005 and establishing the first basic plan the following year, the government has invested 280 trillion KRW over 16 years, but the birthrate continues to decline.

As calls for drastic measures to address the "low birthrate shock" grow louder, the Presidential Committee on Ageing Society and Population Policy will hold a meeting on the 28th to announce measures for low birthrate and aging population.