South Korea has for years topped a list no one wants to lead: the world's lowest birth rate. But in 2025 the trend reversed — at least temporarily. Over 250,000 babies were born, an increase of 6.8 percent from the previous year. That is the largest annual increase in 15 years.
From 0.72 to 0.8 — still critically low
Even with the upturn, South Korea's fertility rate is just 0.8 children per woman. For a population to remain stable, a rate of 2.1 is needed. The decline began in earnest in 2015 and accelerated for eight consecutive years, all the way down to 0.72 in 2022.
Experts point to several causes: sky-high housing prices, intense work cultures, a lack of affordable childcare, and enormous pressure around children's education and performance. For many young South Korean couples, combining a career and family life simply feels impossible.
Companies offer million-dollar bonuses
What makes South Korea particularly interesting is how the business community has thrown itself into the fight. Several large companies now offer enormous bonuses to employees who have children. The government has extended parental leave to 18 months, and a new right to disconnect has been introduced — employees can legally ignore work messages outside working hours.
President Yoon has called the situation a national crisis and promised to "crush housing speculation" to make it easier for young families. Analysts believe the upturn is partly due to couples who married after pandemic delays, combined with aggressive government measures.
The question is whether the upturn will last, or whether it is just a temporary effect.
The global picture
According to the World Bank, the global average fertility rate has been falling steadily for decades. Countries like Japan, Italy, and Spain face similar demographic challenges. South Korea's experience shows that financial incentives alone are rarely enough — structural changes to housing, childcare, and workplace culture are what move the needle.
For parents navigating these pressures, access to affordable, high-quality parenting support and resources matters more than ever.