Analysis: South Korea's demographic crisis

South Korea's fertility rate, the lowest in the world, continues to decline, signaling a demographic crisis

Event or Trend: South Korea’s fertility rate, the lowest in the world, continues to decline, signaling a demographic crisis.

Significance: South Korea’s fertility rate, at 0.78 children per woman in 2023, is creating unprecedented challenges for the economy and public policy. A shrinking workforce will increase labor shortages, strain public finances, and reduce consumer demand. These changes will force the government to overhaul welfare policies and compel businesses to innovate to stay competitive.

Inaction will lead to economic stagnation, heightening risks for both public institutions and private companies. Leaders across sectors must prepare to mitigate the consequences of these demographic shifts to maintain economic resilience and social stability.

Analysis: The fertility rate in South Korea has been in steady decline for decades due to high costs of living, rigid social expectations, and limited family support systems. Despite government initiatives that offer financial incentive…