Aging In South Korea

South Korea is a welcoming and hospitable country with an overall high tourist attraction rate, yet it has been declining in performance the past few years. The country’s citizens are extremely disappointed in the workforce due to the unsatisfactory progress reports the country has been receiving from OECD. Some even claim that the country reached its peak when the fertility rate switched its course and slowly started to decrease. The majority of the obstacles or complications that are happening in the country are because of the dangerously low and dwindling birth rate. It has been causing a rapidly aging population, a lower labor force participation rate, and a possible extinction of the country.

In Korea, it is extremely expensive to raise

This means the economic performance of the country could heavily drop. The government predicts that the economy’s potential growth rate in the 2020s could slip by 2.2 percent. As indicated by the Korea Times, “Korea's population is aging rapidly and will start to fall from 2030 after peaking at 52 million. In 2040, more than half of Koreans will be older than 52. The median age of Koreans now stands at 40.8, but it will rise to 52.6 in 2040.” Aging is a significant factor that could hinder the country’s growth. Unless the government or the citizens take action, it could permanently jeopardize South Korea’s

The reason that the population is shrinking like this is because it is expensive to raise a child in Korea. It takes an abundance of money to raise one single child in South Korea while providing protection, shelter, and other basic necessities. However, a solution to this problem is that the government could give parents a tax cut or a tax decrease if they have more than two children. The South Korean government could reward money to families of low income(under $32,500 or 37,511,500₩) for the number of babies they have in their household. The South Korean government could give families with over two children a 1.5% tax discount for each child. Since paying less is encouraging, this possible solution could persuade parents to have more children and solve the problem of having a low fertility rate. With the new tax decrease in place, parents would be able to buy better products and higher quality utensils or supplies for the babies. This change could ameliorate the living standards and the country’s health and sanitation. This would definitely encourage the parents to have more children and solve the highly menacing problem of having a low fertility