[Reporter’s Notebook] The Misunderstanding Behind the Phrase "Money Is Not Everything"

Recently, I met a public official in charge of low birthrate policies at a meal gathering. When asked, "What is the obstacle to solving the low birthrate issue?" the official replied, "We need to get rid of the idea that young people will have children just because you give them money." Nowadays, the phrase "money is not everything" has become a buzzword among bureaucrats in Sejong City. Even high-ranking male officials in their 40s and 50s now understand how outdated the notion that "people will have children if you just give them money" is. It is encouraging that the deeply rooted beliefs of policy makers have changed.

The change in bureaucrats' thinking was driven by the people. Numerous newlyweds and young people in their 20s and 30s delivered a sharp rebuke to the government, which kept chanting "money, money, money," through various forums and social media. Presidents, prime ministers, ministers, and senior officials who were present on the scene must have clearly heard this. Thanks to this, policies that were once on the sidelines, such as "work-family balance," have emerged as key solutions to the low birthrate problem.

However, bureaucrats began to misunderstand the people's outcry on their own terms. They came to believe that spending money on policies is not that important for overcoming the low birthrate. This belief became a convenient excuse. The grossly insufficient low birthrate budget and the meager incremental increases can be dismissed by saying "money can't solve it." Above all, it became a defense mechanism for the current government, which emphasizes sound fiscal management.

The people's outcry was not "money is unnecessary." It was a critique emphasizing that changing social and corporate culture is as important as policies that spend money. It was a scolding to poke at the naive idea that handing over 100 million won would magically solve the low birthrate problem. It was a request that if the budget is boldly invested, policies should be implemented quickly enough for people to feel the effects.

Spending money on policies remains important. According to a survey released by the Low Birthrate and Aging Society Committee in November last year, 40% of 1,200 respondents cited economic burdens and income polarization as causes of the low birthrate. The second most cited cause was the burden of child-rearing and education (29.6%). These are problems that cannot be solved without astronomical spending.

However, the low birthrate budget is grossly insufficient. Over 15 years, the Korean government has spent 380 trillion won on low birthrate policies, but a significant portion is evaluated as unrelated to the low birthrate issue. The family support budget estimated by the National Assembly Budget Office is 1.56% of the Gross Domestic Product (GDP), which is lower than the average of the Organization for Economic Cooperation and Development (OECD). Among the 38 OECD member countries, Korea ranks 33rd, placing it in the lower tier.

Next month, the Ministry of Economy and Finance will notify each ministry of budget formulation guidelines, and budget negotiations will begin. Fierce budget tug-of-wars will unfold among ministries, but the low birthrate solution should be an exception. Korea is a country heading toward population extinction. Like the tax benefits for Booyoung Group, money should be spent where necessary even if the president and society as a whole do not focus on it.