South Korea's total fertility rate (TFR) hit a record low of 0.72 in 2023, far below the replacement level of 2.1, driven by a mix of economic, cultural, and structural factors. Skyrocketing housing costs in Seoul—where median apartment prices exceed $1M—combined with stagnant wages for young people make child-rearing financially daunting. The hyper-competitive job market, with youth unemployment around 7% and precarious gig work common, delays financial stability. Additionally, the 'Sampo Generation' (giving up on courtship, marriage, and children) reflects pessimism about economic prospects amid rapid aging and a shrinking workforce.
Culturally, South Korea's intense work culture—average annual hours exceed 1,900, among the world's highest—leaves little room for family life, especially for women facing career penalties post-childbirth. The education system fuels this: families spend up to 20% of income on private hagwons (cram schools), perpetuating a cycle of overwork to secure spots in top universities and chaebol jobs. Gender imbalances persist, with women handling 80%+ of childcare despite high female workforce participation (60%), leading many to forgo kids. Delayed marriage (average age now 33 for men, 31 for women) and rising singles rates amplify the trend.
Government interventions like cash subsidies ($700/month per child) and housing perks have failed to reverse it, as they don't address root causes like work-life balance or cultural expectations. Comparisons to Japan (TFR 1.3) or Nordic countries (1.5-1.8 with strong family policies) suggest immigration, flexible work norms, and affordable childcare could help, but SK's homogeneity and corporate rigidity pose challenges.
Key Takeaways
Prohibitive costs: Housing and education expenses deter family formation.
Work culture: Extreme hours and gender disparities limit parenting time.
Economic pessimism: High youth competition and instability delay milestones.
Policy limits: Subsidies insufficient without cultural and structural shifts.