South Korea’s Presidential Committee on Aging Society and Population Policy will begin formal discussions this month to develop its fifth basic plan (2026-2030) for addressing the nation’s declining birthrate and aging population challenges. (Image courtesy of Yonhap)
SEOUL, March 5 (Korea Bizwire) — South Korea’s Presidential Committee on Aging Society and Population Policy announced on March 4 that it will begin formal discussions this month to develop its fifth basic plan (2026-2030) for addressing the nation’s declining birthrate and aging population challenges.
The announcement follows the committee’s ninth emergency population meeting, held virtually from February 25-28. The initiative comes as the country grapples with one of the world’s lowest fertility rates and a rapidly aging society.
The committee plans to monitor 15 key performance indicators monthly across three main areas: work-life balance, childcare, and housing/marriage. These metrics will help gauge the effectiveness of measures introduced in June last year to combat the declining birthrate.
“We will work with budget authorities and relevant ministries to reflect these initial in-depth evaluation results in future policy improvements,” said Joo Hyung-hwan, vice chairman of the committee. He added that comprehensive evaluations of work-life balance support programs would follow.
The committee identified the next five years as a critical “golden time” for addressing population challenges, particularly as the baby boomer generation enters their senior years. Plans include developing practical solutions in three key areas for the elderly: employment and income, care and housing, and senior-focused technology and industry. These proposals are scheduled for announcement in the first half of the year.
A recent evaluation conducted by the Population Policy Assessment Center, operated by the Korea Institute of Public Finance, revealed mixed results from current initiatives. While universal cash benefits from the central government and local birth grants showed some positive impact on fertility rates, concerns emerged about the sustainability and effectiveness of continuously increasing financial support.
Local government spending on cash benefits increased by 20.5%, from 707.9 billion won in 2022 to 852.7 billion won in 2023. However, experts warn that this could lead to counterproductive competition among local governments in providing birth incentives.
The assessment also highlighted challenges in childcare services. Daycare centers and kindergartens are struggling to maintain quality services as declining enrollment affects their ability to hire experienced teachers. Small and medium-sized companies continue to face difficulties in establishing and operating workplace childcare centers due to cost constraints, space limitations, and fluctuating demand.
The childcare service sector faces its own challenges, with a significant gap between supply and demand for caregivers, complicated by mismatches in preferred service hours between providers and users.
To address these issues, the committee proposed several reforms, including better coordination of cash benefit programs between central and local governments, and adjusting the distribution of financial support to better match age-specific child-rearing cost patterns, particularly noting that current benefits are heavily concentrated on children under two years of age.
M. H. Lee (mhlee@koreabizwire.com)
