November 24, 2024

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President Yoon Suk Yeol speaks during a meeting of Presidential Committee on Aging Society and Population Policy held in HD Hyundai Global Research and Development Center in Bundang, Gyeonggi Province, Wednesday. (Pool photo via Yonhap)

President Yoon Suk Yeol declared a "national emergency on population" Wednesday, rolling out measures to expand cash support for newborn babies to reverse the declining birth rate trend.

"The population crisis caused by extremely low birthrates is the foremost and critical issue among the various challenges our society faces today, and South Korea must recognize the existential threat the rapid population decline is posing," Yoon stated, declaring the matter a national emergency and announcing a nationwide response system to address it.

Yoon made the announcement during a meeting of the Presidential Committee on Aging Society and Population Policy, which he chairs, alongside representatives from the Finance Ministry and Welfare Ministry at the HD Hyundai Global Research and Development Center in Bundang, Gyeonggi Province, Wednesday. This marked the second time Yoon has personally convened the committee, following the first in March 2023.

According to Yoon, the new measures stem from a thorough reassessment of the government's past efforts to boost the country's birth rate, which have proven ineffective despite substantial investments. In the first quarter, Korea's fertility rate -- the number of children a woman has within her lifetime -- hit a record quarterly low of 0.76, and it is projected to drop to another fresh low of 0.68 this year.

Recognizing the urgency of the issue, Yoon said the government is launching a comprehensive emergency response system.

This includes establishing the Population Strategy Department, whose head will also assume the role of deputy prime minister for social affairs, a role currently held by the education minister, to oversee the development of national strategies addressing population issues. Additionally, a senior presidential secretary position dedicated to tackling low birth rates is to be created.

Furthermore, the government will focus policy efforts on three core areas of work-life balance, child care and housing.

First, to support parents in balancing work and child care responsibilities, two weeks of short-term child care leave will be introduced for emergencies, such as when children fall ill. Additionally, the age limit for reduced working hours during child care will be raised from 8 years old to 12, with the maximum period extended from 24 to 36 months.

To encourage fathers' involvement in child care, paternity leave for childbirth will increase from 10 days to 20 days. Fathers will also be able to take leave during their wife's pregnancy under specific conditions, rather than only after birth.

Furthermore, the child care leave pay cap for the initial three months will be raised to 2.5 million won ($1,800) from the current 1.5 million won. This amount will decrease to 2 million won in the subsequent three months and to 1.6 million won over the following six months. Additionally, to support employers, the monthly subsidy for hiring replacement workers will increase to 1.2 million won.

Second, President Yoon committed to the government taking responsibility in supporting child care and vowed to gradually implement a public child care system covering children from birth to 11 years old within his tenure.

To achieve this, the government will provide free education and care for children aged 3 to 5, expand after-school programs to all elementary school grades nationwide by 2026 and incrementally increase free program offerings.

Addressing the shortage of domestic caregivers amid population decline and aging, the government aims to significantly boost the availability of both public and private caregivers, targeting 300,000 households by 2027. This initiative includes recruiting 1,200 foreign domestic workers by the first half of next year and facilitating foreign students and spouses of foreign workers to participate in caregiving roles, with 5,000 individuals involved in the pilot program.

The government will also explore measures to enable private agencies to recruit, mediate and manage foreign caregivers from abroad.

Yoon underscored the government's commitment to tackling housing issues for newlyweds and families with children. Initiatives include expanding housing allocations for households with newborns to 120,000 units and developing new housing sites tailored for newlyweds and families with newborns or multiple children.

The government will streamline access to home purchase and rental loans for those with newborns and offer improved preferential interest rates for each childbirth. Additionally, to reduce financial barriers to marriage for young people, a new marriage tax deduction will be introduced and child tax deductions expanded.

Meanwhile, on Wednesday, Yoon also visited Dream Boat, the company day care center located inside HD Hyundai's building.

By Choi Ji-won (jwc@heraldcorp.com)