"Korea to Have Lowest Core Working Population Among OECD by 2047... Threatening Business Survival"

The Working-Age Population Needed for Economic Growth
Up to 16.2 Million Shortfall by 2050
"Businesses Must Change and Government Should Supplement"

Regarding South Korea's total fertility rate dropping to 0.65 in the fourth quarter of last year, Dr. Yoo Hye-jung of the Korean Peninsula Future Population Research Institute warned that the proportion of the core working-age population aged 25-54 in South Korea will be the lowest among OECD member countries by 2047.

Dr. Yoo appeared on KBS Radio's "Jeon Jong-cheol's Jeongyeok Sisa" on the 4th and said, "Population decline can be seen as a significant decrease in both the quality and quantity of South Korea's labor force. This will pose a great burden on the survival of companies operating based on labor." She predicted that the working-age population necessary for economic growth will be at least 7.6 million to a maximum of 16.2 million short by 2050. While some believe that the use of artificial intelligence and improvements in labor productivity could maintain the current economic level with fewer people, she disagrees.

The most urgent issue Dr. Yoo mentioned is the change in corporate culture. She said, "No matter how excellent the government's low birthrate policies are, if companies do not properly implement them, it is difficult to expect any effect." She cited the example that the actual number of users of the legally guaranteed parental leave system was 30 per 100 births in 2021. Dr. Yoo explained, "This is far below the OECD average of 74."

So, how do working conditions such as treatment in the workplace after childbirth affect marriage and childbirth? Dr. Yoo believes that various factors influencing job satisfaction indirectly affect marriage and childbirth. According to a survey conducted by the Korea-America Institute in June last year with 2,300 respondents, those with high job satisfaction showed a 22 percentage point higher intention to marry and a 12 percentage point higher intention to have children compared to those with low job satisfaction.

In particular, Dr. Yoo emphasized that the government should complement corporate efforts. She said, "I think parental leave and childcare leave should be greatly expanded, and sufficient national support budgets should be prepared." Workforce is also an important part. She added, "Support systems should be nationally established to assist small and medium-sized enterprises, which find it very difficult to hire and manage new personnel."

Meanwhile, according to the '2023 Birth and Death Statistics' and 'December 2023 Population Trends' released by Statistics Korea last month, the number of births last year was 230,000, a decrease of 19,200 (7.7%) compared to the previous year (249,200). This marked the lowest number on record again following the previous year.