South Korea recently shattered its own record for the world’s lowest fertility rate, falling to a dismal 0.72 births per woman in 2022. This represents an alarming 8% decline from the already concerning rate of 0.78 in 2021.

This plummeting birth rate has triggered a full-blown population crisis in South Korea. With the population declining for the fourth consecutive year, the country faces the prospect of “national extinction,” as the government itself has termed it. By 2072, projections show a potential 30% population drop, with numbers shrinking from the current 51 million to a mere 36 million. This decline is expected to continue through the 21st century.

South Korea is not alone in this battle. Neighboring Japan also struggles with a similar issue, recording its eighth consecutive year of declining births in 2023, reaching a new national low. China, too, faces a shrinking population, marking its second consecutive year of decline in 2023.

This alarming trend extends to several other Asian nations, with ten countries in the region holding the world’s worst fertility rates. These are predominantly large economies grappling with rapid population aging and insufficient numbers of young individuals to sustain their workforces.

The consequences of a shrinking population are far-reaching. With fewer people working, production of goods and services naturally declines, hindering economic growth. Additionally, the burden of supporting a growing elderly population falls on a smaller workforce, leading to increased governmental costs.

In response to this crisis, many Asian governments have implemented policies aimed at boosting fertility rates, spending billions of dollars on measures like parental leave extensions, childcare subsidies, and tax incentives. However, data reveals limited effectiveness of these approaches, with the underlying issues of high childcare costs, soaring housing prices, limited job opportunities, and persistent gender inequality remaining unaddressed.

These factors contribute to a delay or complete avoidance of marriage among young people, further compounding the population decline. The year 2023 witnessed a 5.9% drop in marriages in Japan, mirroring similar trends in South Korea and China.

Simply throwing money at the problem appears to be an ineffective solution. Policymakers need to address the root causes of declining birth rates, which extend far beyond the simple desire to have children. Lack of access to well-paying jobs, affordable housing, and adequate support for working parents are crucial issues demanding immediate attention.

Unless these broader societal challenges are tackled comprehensively, the population crisis in South Korea and other affected Asian nations is likely to worsen, potentially leading to unforeseen consequences in the years to come.