Low Birthrate, a 'Sign' Not a 'Problem'... Customized Strategies Needed by Region and Industry

Hankyung Association Hosts International Seminar on 'Low Birthrate and Aging Population'

The phenomena of low birth rates and aging populations are global issues, and experts have suggested that Korea's low birth rate should be recognized not as a 'problem' but as a 'sign.' They urged the implementation of tailored strategies by region and industry to address the population decline.

Jeong Cheol, Chief Research Officer of the Korea Economic Association and President of the Korea Economic Research Institute (fifth from the left), along with other guests, are posing for a commemorative photo on the 22nd at the FKI Tower Conference Center during the event "Impact and Solutions of Low Birthrate and Aging Society as Viewed by Domestic and International Scholars."
[Photo by Hankyunghyeop]

At the 'International Seminar on Low Birth Rate and Aging' held on the 22nd by the Korea Economic Association at the FKI Tower in Yeouido, Yeongdeungpo-gu, Seoul, demographic experts from various countries diagnosed that low birth rates and aging are structural phenomena arising from changes in social structures and cultural expectations. The seminar, sponsored by the Presidential Committee on Ageing Society and Population Policy, was attended by population experts from the United States, Europe, and Asia.

The experts emphasized the need for a new perspective on population issues such as low birth rates and aging.

Professor Stewart Gietel-Basten of the Hong Kong University of Science and Technology said, "Korea's low birth rate should be recognized not as an immediate 'problem' to be solved but as a 'sign' indicating a failure of the overall social system," adding, "There is a need to shift from a simple population-centered approach to a society-centered approach."

Dr. Nicholas Eberstadt of the American Enterprise Institute stated, "Unlike past population declines caused by external factors such as the Black Death, this is characterized by humanity's voluntary choice," and added, "We must prepare for a society where population decline, contraction, and aging become constants, which requires completely new policy imagination."

There was also an opinion that a clear understanding of the sociocultural context is necessary for the effectiveness of policies addressing low birth rates and aging.

Dr. Thomas Sobota of the Vienna Institute of Demography said, "Unlike Europe, where cohabitation forms are diverse and marriage-birth links are weak, East Asian countries culturally still have limited cohabitation outside marriage, and post-marital births are dominant," adding, "Financial support policies that ignore this sociocultural context are likely to fail in reversing birth rates."

Professor Lee Cheol-hee of Seoul National University analyzed the impact of low birth rates and aging on labor supply and demand by region and industry. He emphasized the need for tailored policies rather than simple cash injections.

Professor Lee identified industries expected to face the most severe labor shortages by 2032 as healthcare and social welfare services (about 490,000 shortage), accommodation and food services (about 250,000 shortage), and information and communication (about 160,000 shortage).

By region, the Seoul metropolitan area is expected to face labor shortages in high-tech sectors such as information and communication and science and technology services, while the southeastern region including Ulsan is projected to experience large-scale labor shortages across manufacturing industries.

During the comprehensive discussion led by Jung Chul, Chief Research Officer of the Korea Economic Association and President of the Korea Economic Research Institute, opinions were expressed that the overall social paradigm must be fundamentally changed. The decline in birth rates is not simply an economic issue but a structural phenomenon caused by changes in social structure and cultural expectations.

Participants in the discussion emphasized the need to establish a society where "no one is wasted." They stated that changing paradigms formed during the past expansion era in labor markets, housing environments, and education systems is essential to solving the population decline problem.