Analysis: Marginal increase doesn't solve South Korea's demographic crisis

South Korea's population is on track to halve by the end of the century, undermining economic growth, labor markets, and social stability.

Significance: South Korea’s demographic crisis is the defining challenge of its economic, social and potentially security landscape. Government policies focused on work-family balance, childcare, and housing do not address the full scope of the problem. The nation’s population is on track to halve by the end of the century, undermining economic growth, labor markets, and social stability.

The demographic crisis is driven by entrenched structural issues, including labor market rigidity, an unsustainable education system, and a stagnant immigration framework. Despite a marginal increase in 2024, the fertility rate remains amongst the lowest globally. The long-term consequences will reshape South Korea’s domestic stability and international economic standing.

Analysis: South Korea’s fertility rate has been in continuous decline for decades, falling below the replacement level in 1983. Economic developm…