In 2023, South Korea’s fertility rate hit a record low of just 0.72 children per woman - the lowest in the world (World Bank). In Seoul, it fell even further to around 0.55. These numbers reveal deep societal challenges with enormous consequences for the economy, the workforce, and the future of businesses worldwide.

How Did South Korea Get Here?

In the 1950s, South Korean women had an average of six children. By the 1980s, the fertility rate had dropped below the 2.1 needed for a stable population. Today, projections suggest that 100 South Koreans alive now will have just five descendants after four generations (BBC).

South Korea’s population pyramid already shows one one-year-old for every four fifty-year-olds. If trends persist, the population will shrink by 30% by 2060, losing around 16 million people (The Korea Herald).

By 2060:

• Half of the population will be over 65.
  
  
• Less than 10% will be under 25.
  
  
• Very few will be small children.
    

The Economic Cost of Demographic Collapse

Even though South Korea’s GDP is still growing as of 2023, the fertility drop between 2022 and 2023 was nearly 8%. The working-age population is set to fall from 37 million to 17 million by 2060. A shrinking workforce means less economic output, lower tax revenues, and ballooning pension costs.

In 2023, 40% of South Koreans over 65 lived below the poverty line (OECD). Although the national pension fund holds $730 billion, it could be depleted by the 2050s. For sustainability, societies need two to three workers per retiree; South Korea is on track to have less than one.

Breaking Down the Social Impact

Beyond economics, the social fabric is unraveling. About 20% of Koreans live alone. By 2060:

• 50% of 70-year-olds will have no siblings.
  
  
• 30% will have no children.
  
  

Young adults aged 25-35 will shrink from 37% of the population in 2000 to just 5% by 2060. Entire traditions, schools, and even towns are at risk of disappearing, mirroring Japan’s ongoing rural decline.

Military service obligations also loom larger. Today, about 5% of combat-age men serve; by 2060, many more would need to serve just to maintain current troop levels (Defense News).

Why Women in the Workplace Matter More Than Ever

The government offers child-rearing grants of $500 to $700 a month, but raising a child costs between $200,000 and $300,000. At the same time, South Koreans work 155 hours more per year than people in other developed countries (OECD). For women, balancing a career with motherhood often means impossible trade-offs. Many leave the workforce entirely due to limited childcare and inflexible work environments.

This is an economic emergency. Without better support for women at work, fertility will not recover, and national prosperity will continue to erode.

There are small signs of hope: births rose by 3% in 2024, the first increase in nine years. But reversing decades of demographic decline requires systemic change.

WCorp’s Commitment to Building Sustainable Workplaces

At WCorp, we know that equitable, flexible, and supportive workplaces are essential to solving demographic crises like South Korea’s. When companies invest in women’s leadership, offer family-friendly policies, and create cultures of belonging, they fuel national prosperity and their own success.

Supporting women to thrive at every stage of life is not just the right thing to do; it is the smartest investment a business can make for long-term resilience.

Learn how your company can lead the future by building a workplace where women, families, and business thrive. Start your WCorp journey today.