"Low Birthrate Solutions, Government Can't Keep Up" Harsh Criticism from Hong Seok-cheol, Deputy Commissioner [K Population Strategy]

(17) Interview with Hong Seok-cheol, Co-Head of the People Power Party Headquarters
"Low birthrate limits... Impossible if ministries like the Ministry of Economy and Finance oppose"
Solution to low birthrate "The most important thing is work-family balance"

“No matter how much the Low Fertility and Aging Society Committee (Jeogowi) proposes, practical ministries like the Ministry of Economy and Finance respond that it is difficult to implement for various reasons. When faced with an urgent population issue, shouldn’t we overcome these constraints? Only then can we have a drastic measure.”

Professor Hong Seok-cheol of the Department of Economics at Seoul National University, who was the first to resign from the standing committee position at Jeogowi, the government’s population policy control tower, said in an interview with Asia Economy at the National Assembly on the 19th, “Even considering side effects or additional costs, it is time for bold proposals and the determination and courage to break through.” He emphasized that since Korea is facing a serious population crisis, the government must boldly present low fertility policies despite constraints.

On the 19th, Hong Seok-cheol, professor of economics at Seoul National University and co-head of the People Power Party's Policy Development Headquarters, spoke about low birthrate measures in an interview with Asia Economy at the National Assembly in Yeouido, Seoul. Photo by Kim Hyun-min kimhyun81@

Professor Hong actually judged that tax incentives to encourage family-friendly policies were crucial at Jeogowi and tried to push for a policy to reduce corporate tax with the Ministry of Economy and Finance, but failed. The Ministry cited concerns about “tax revenue shortages.” Professor Hong also acknowledged the inherent limitations of Jeogowi. He revealed, “We had to establish and evaluate individual policies without budget authority.” He then suggested, “Jeogowi should be transformed into a function that advises on population strategy.”

Professor Hong summarized the core low fertility policies into three categories: time, money, and services. He said, “First, people want time to take care of their children; second, since it costs a lot, they want the country to help; third, they want the state to help raise children together.” He raised his voice, saying, “The ideal family policy is to completely eliminate these three difficulties.” The work-family balance measures announced by the People Power Party the day before were related to ‘time.’ Additional pledges focusing on reducing childcare burdens and expanding public services are planned to be released next week. Professor Hong recently moved to become the head of the People Power Party’s pledge development headquarters. He expressed hope, saying, “In the National Assembly, where laws are made and passed, policies can be designed more freely, and through this, the foundation of low birthrates can be changed.”

“Work-Family Balance, the Most Important Low Fertility Measure”

The low fertility policy that Professor Hong considered most important was support for work-family balance. He said, “Even at Jeogowi, among all policies, work-family balance was the highest priority,” adding, “Whether through surveys or field visits, I consistently heard that it was the most necessary measure.” He cited the biggest achievement of Jeogowi as having first discussed and publicized what is needed to support work-family balance.

Professor Hong elaborated, “In the 1980s and 1990s, European countries also saw fertility rates decline as female employment rates rose,” and “the active work-family balance policies emerged at that time.” European countries then provided policy support so women could continue working after childbirth and focused on equally distributing childcare burdens between men and women. Professor Hong emphasized repeatedly, “If Korea is experiencing the same things Western countries went through, the solution is consistent: ultimately, work-family balance.”

Professor Hong sees the fundamental cause of low fertility here. He criticized, “Demand for work-family balance has increased, but the government cannot keep up,” and “The level of industrialization is like Europe’s, but awareness of policies is far behind.” He also views the historical context of low fertility as industrialization. Europe had 150 years of gradual industrial revolution to fix side effects, but Korea’s economic growth was 2 to 3 times faster than other countries, leaving no time for such adjustments.

Regarding whether Korea’s long working hours problem should be proactively addressed to achieve work-family balance, he gave a reserved answer. Professor Hong said, “Reducing working hours for everyone is a political issue,” but also acknowledged, “It is true that people have no time to care for children because of working hours.” Regardless of corporate conditions or political debates, his view is that “at least during childcare, working hours should be drastically reduced and labor conditions significantly improved.”

Why Has the Work-Family Balance Culture Not Taken Root?

On the 19th, Hong Seok-cheol, professor of economics at Seoul National University and co-head of the People Power Party's Policy Development Headquarters, is being interviewed by Asia Economy at the National Assembly in Yeouido, Seoul. Photo by Kim Hyun-min kimhyun81@

Professor Hong judged that institutions and the consciousness of the younger generation have already changed. He said the institutions are at an advanced country level, and young people desire work-family balance, such as pursuing ‘work-life balance (WLB).’

He identified the problem as the ‘pressuring’ corporate culture. He said, “Our current corporate culture does not tolerate ‘Yes, you can work while taking care of your children.’” Income is also a cause. He pointed out, “Trying to balance work and life reduces income, and if that is not compensated in other ways, livelihood becomes difficult, yet people want to do it but feel pressured?this complex environment is the problem.”

Especially, difficulties in work-family balance are more severe in small and medium-sized enterprises (SMEs) than in large corporations. Professor Hong said, “Most Korean companies are SMEs, and 90% of young people work in SMEs,” adding, “In SMEs, even one person taking leave causes visible losses, so no matter how excellent the CEO is, it is difficult to establish childcare leave systems.” He diagnosed that large corporations enjoying economies of scale can smoothly replace absent workers, but SMEs often have low wages and are located outside metropolitan areas, making alternatives difficult to find.

Is There a Solution? Raise Substitute Worker Quality and Expand Flexible Work

To strongly drive the resolution of low fertility, he said a deputy prime minister-level population ministry should be established. This is also necessary to overcome the limitations Jeogowi faced. Professor Hong said, “If a department with actual authority exists, it can establish comprehensive policies since low birthrate issues relate to various social structural problems,” emphasizing, “Changing the low birthrate trend cannot be done gradually. Bold decisions must be made on at least a few issues.”

He strongly criticized the existing government’s substitute worker system as ineffective. He pointed out that the Talent Filling Bank (formerly Substitute Worker Bank) under the Ministry of Employment and Labor is not fulfilling its role. The Talent Filling Bank is a job support system where the government secures substitute workers in advance for positions expected to be vacant due to maternity leave, parental leave, or reduced working hours during childcare, and recommends suitable talents to companies in a timely manner. Professor Hong said, “Recruitment is not done by actively securing talent but mostly by calling labor market platforms to ‘please register with the bank,’” adding, “Since the talent pool is not large, there are clear limitations.”

Instead, he emphasized that steady support through investment must continue to raise the quality of substitute workers. Professor Hong said, “The government doesn’t have to search for substitute workers; people should want to work as substitutes,” and “For example, if part-time job workers earn as much as in large corporations when participating as substitutes, naturally the number of applicants will increase.” The People Power Party announced a pledge the day before to expand the childcare leave substitute worker support fund from the current 800,000 won to 1.6 million won and to provide up to 2.4 million won if career-interrupted persons and middle-aged or elderly retirees are hired as substitutes.

He also believed that expanding flexible work in SMEs would reduce the need for substitute workers. Professor Hong said, “If staggered working hours, reduced working hours, and telecommuting expand in SMEs, substitute workers will be less necessary unless it is a long-term parental leave,” adding, “Experts agree that an environment where work and childcare are possible simultaneously must be actively created.”

Professor Hong expressed caution about cash support such as loan forgiveness or large sums of money given upon childbirth. He said, “The 100 million won loan forgiveness policy announced by the Democratic Party is really problematic,” and evaluated it as “a policy that forces childbirth by using money as leverage.” He argued, “This is a policy that forces women and young people to have children,” adding, “It distorts the value of family into cash and the experiment in Hungary, which introduced such a measure first, was not successful.”

Of course, he acknowledged that even if bold population solutions from both ruling and opposition parties are applied, a rapid surge in birthrates in a short time is unlikely. Professor Hong said, “Low fertility relates to the basics our society must have,” and “The state must give people the thought and confidence that it is okay to have and raise children.” Finally, he said, “Solving the low birthrate problem is ultimately an opportunity to resolve various irrational structural problems within our society. It is a process of normalization.”

Special Coverage Team

'K Population Strategy - Gender Equality is the Answer' Reporters: Kim Yuri, Lee Hyun-joo, Jung Hyun-jin, Boo Ae-ri, Gong Byung-seon, Park Jun-i, Song Seung-seop
Kim Pil-su, Economic and Financial Editor