The Organisation for Economic Co-operation and Development (OECD) published a booklet on the 5th, detailing South Korea's severe low birth rate issue and possible countermeasures. While the OECD has previously released reports on South Korea's low birth rate problem, this is the first time it has been officially published as a booklet.

In the booklet titled "Korea’s Unborn Future: Understanding the Low Birth Rate Trend," the OECD pointed out that although declining birth rates are a global phenomenon, South Korea recorded the lowest fertility rate in the world in 2023, with a total fertility rate (the expected number of children a woman will have in her lifetime) of 0.72. The OECD warned that if the birth rate remains at its current level, South Korea’s population will be halved over the next 60 years, and by 2082, approximately 58% of the total population will be aged 65 or older. Furthermore, during this period, the elderly dependency ratio is projected to surge from the current 28% to 155%.

The OECD identified high private education expenses and rising housing costs as key factors contributing to South Korea's particularly low birth rate compared to other economically developed nations. Although South Korea has made various efforts to reduce reliance on private education, the OECD noted that fundamental issues such as labor market duality and university hierarchy remain unresolved. Housing costs also doubled between 2013 and 2019, which resulted in a 4% to 5.7% decrease in the likelihood of marriage.

Additionally, the OECD cited South Korea's long working hours, lack of flexibility in working hours and locations, and difficulties in balancing work and family life as major reasons for the declining birth rate. Social perceptions regarding gender roles—such as the expectation that women should take care of household responsibilities—and negative attitudes toward out-of-wedlock births were also identified as factors affecting birth rates.

The OECD recommended that South Korea first review its family policies by sector to prevent the decline in birth rates. It also pointed out the need to extend the effective working life.

To address this issue, the OECD suggested that childcare services should better align with working hours and commuting times. It also recommended expanding workplace childcare facilities and improving parental leave policies. While South Korea's income replacement rate for parental leave (80%) is among the highest in the OECD, the payment cap (1.5 million KRW as of 2024) amounts to only 46% of the average wage, lower than Sweden (95%), Norway (124%), and France (82%). Additionally, the OECD noted that South Korea has strict eligibility criteria for parental leave, and the utilization rate among eligible individuals is low, ranking third from the bottom among OECD countries.

Despite increased public spending on family policies, South Korea’s birth rate has continued to decline.