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With a plan to show women more respect, South Korea tries to fix its demographic crisis

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With a plan to show women more respect, South Korea tries to fix its demographic crisis

​In just over a decade, South Korea has spent the equivalent of a small European economy trying to fix its demographic crisis, yet birthrates have dropped to the lowest in the world.

This year, President Moon Jae-in, who describes himself as a feminist president, is testing a new angle: showing women more respect.

At the end of last year, South Korea announced plans to remove some of the disincentives for employing women, allowing both parents to take parental leave at the same time and extending paid paternal leave. Employers also get incentives to allow either parent to work fewer hours.

“Efforts on gender equality are very timely,” said Shin Eun-kyung, an economist with the Organisation for Economic Co-operation and Development. South Korea is the worst place for women to work in the OECD, despite women being among the organization’s best educated — and more highly so than men.

But the measures go beyond the workplace. Mothers can choose to give the baby their own last name, and a birth-certificate tick box showing if a baby was born outside marriage will be removed.

Fertility treatments will be offered to single women and unmarried couples as well. Social campaigns will encourage men to participate more in child care and household chores.

Contrast that with a 2016 effort by the previous government, run by the country’s first female president, Park Geun-hye, which launched a website carrying a real-time statistical map of women of child-bearing age, marriages and births in the hope of spurring competition between cities and regions.

The website was taken down after one day, with women complaining it made them feel like “reproductive organs.”

“The country sees women as baby factories,” said Hong Sook-young, who produces the country’s most popular children’s TV show. Asked about the latest measures, Hong said, “At least pretending to hear what people really want is a start toward change.”

South Korea’s demographic time bomb is ticking louder. The government’s latest forecast sees its population declining from 2027, and a presidential committee said economic growth potential could fall below 1 percent.

Birth rates have long been a policy priority. Since 2006, the government has spent 152.9 trillion won ($135.65 billion) — about the size of an economy like Hungary or Nevada — on perks for families and subsidies for children from birth through university and beyond. Last year’s budget of 26.3 trillion won for the birth policy was more than half that for defense, in a country technically still at war with its northern neighbor.

But demographic experts say money is not the main issue; the experience of advanced countries with higher birth rates, such as France or Sweden, shows gender equality plays a crucial role.

The previous allocation of resources drew criticism as well. The government went far beyond child allowances and subsidizing care and education. For instance, it funded temple stays for family bonding and financed youths seeking brief jobs abroad.

Many such programs will end, with the 2019 birth-support budget cut by a quarter, to 20.5 trillion won.

“It should have been cut a long time ago,” said Jung Jae-hoon, social welfare professor at Seoul Women’s University.

Jung cautioned, however, that the signal the government is finally sending will take a long time to filter through the conservative society. Births outside marriage, for instance, are so widely frowned upon that they amount to only 1.9 percent of the total — the lowest anywhere. Experts compare that to France, where the out-of-wedlock ratio is over 50 percent and the birth rate is nearly twice as high. Abortion is illegal in South Korea, and adoption rules very strict.

The stigma of out-of-wedlock babies has led Seoul’s Jusarang Community Church to build an oven-size “baby box,” with cushions and a heating system, into its outside wall.

Last year, 261 children were abandoned across the country, according to Statistics Korea.

About 56 percent of women ages 15 to 64 work in South Korea, below the OECD average of almost 60 percent. In Denmark and Sweden, whose birth rates are among the highest of advanced economies, 72 to 75 percent of women work.

Recruiters say married young women are less likely to get job opportunities due to discrimination.

In November, the Supreme Court upheld a four-year jail sentence against a former CEO of state-run Korea Gas Safety Corp. over manipulating interview scores to knock women out of the hiring process.

Although Samsung Electronics has a more balanced gender ratio than Apple globally, with almost women making up almost half of its staff, versus Apple’s one-third, only 1 in 4 staffers at its South Korean headquarters are women. None of the nine board members at Hyundai Motor Co. are women, versus six out of 12 at General Motors.

“The whole period of before, during and after childbirth weighs on our career,” said a female assistant manager at Hyundai Motor. The pay gap between sexes only makes it harder, she added.

South Korea’s gender wage gap is highest among advanced countries at 34.6 percent, above OECD average of 13.8 percent.

A Hyundai Motor spokeswoman said the firm is committed to providing equal opportunities to all employees and opposes discrimination. A Samsung Electronics spokeswoman said the company has been recruiting more women, including in managerial positions, that most staffers return to work after parental leave and that its day-care centers can look after 3,000 children.

Although Moon’s approach to birth rates is seen as an improvement, his job and housing policies discourage parenthood. Minimum-wage hikes have led to higher unemployment, while larger down-payment requirements have made homes unaffordable for many.

“Creating a structure that enables us to have our own house is mostly needed,” said Lee Kyoung-min, a store manager at Lotte Mart, who is a father of three.

Some also argue that work-life balance could be better: Moon in July cut the working week to 52 hours from 68, but South Koreans still work 15 percent longer than the OECD average.

If birth rates don’t improve, South Korea’s economy could be 5 percent smaller by 2060 as productivity falls and higher spending for elderly care leaves less room for investment, the National Assembly Budget Office estimates.

Industries catering for babies are struggling. Seoul has lost 1 in 4 maternity wards, and in 2018 the capital sacked more than half its teachers.

Ryu Won-woo, manager of baby fair organizer BeFe, praised the government’s measures, especially those encouraging more responsibilities for dads. But he does not expect quick results.

“More local baby-product companies may disappear before Korea sees more babies,” Ryu said.

This article was originally published on January.4, 2019, for Japan Times

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