"The low birthrate issue is a task that must be solved for the future of the Republic of Korea and the most important national agenda."
On the 22nd at the Korea Federation of Small and Medium Enterprises in Yeouido, Seoul, Chair Kim Ki-moon said this at a policy roundtable on small and medium-sized enterprises in response to demographic changes co-hosted with the Presidential Committee on Ageing Society and Population Policy, stressing the need for on-site, practical policies to address the low birthrate.
The roundtable was organized to assess how demographic changes caused by a low birthrate and an aging population affect the business environment and labor market for small and medium-sized enterprises, and to convey on-the-ground difficulties and policy needs to the government. More than 100 people attended, including Vice Chair Kim Jin-o of the Presidential Committee on Ageing Society and Population Policy, representatives of women's business circles, heads of SME groups, heads of cooperatives, businesspeople, and experts.
Citing a Korea Federation of Small and Medium Enterprises survey, Kim pointed to economic burdens and difficulties balancing work and family as the root causes of the low birthrate. "Fifty-seven percent of SME workers said they are hesitant to marry or have no intention of marrying," Kim said, explaining, "Housing and child-rearing costs, and work environments that make it hard to juggle childcare and jobs, emerged as the main reasons."
Kim added, "As the Presidential Committee on Ageing Society and Population Policy is set to relaunch as the 'Population Strategy Committee' in September, I expect it to serve as the control tower to resolve the low birthrate issue and craft policies that provide real help on the ground."
Vice Chair Kim Jin-o emphasized the importance of narrowing the gap between systems and the field. "Even though birth and childcare support systems exist, many small and medium-sized enterprises either do not know about them or cannot use them due to circumstances," Kim said. "It is important not only to make policies but also to ensure they are properly used on the ground."
Kim also said, "For a life with family to be possible, SMEs must raise the use of parental leave and flexible work," adding, "Improvements in awareness among employers, workers, and society at large, and the creation of family-friendly corporate cultures, must happen together."
At the expert session, Research Fellow Park Eun-jung of the Korea Institute of Child Care & Education (KICCE) presented the Korea Federation of Small and Medium Enterprises' survey on perceptions of birth and childcare among SMEs and small business owners. According to the survey, 51% of SME workers and 50.7% of small business and microbusiness owners said they have no intention of having children. The biggest reasons cited for avoiding childbirth were economic burdens such as housing, child-rearing, and education costs, and the reality that it is hard to balance work or business with childcare.
On the other hand, responses also showed high expectations that perceptions of marriage and childbirth could turn positive if economic support is expanded and care services are improved.
Park emphasized, "To reduce the burdens of childbirth and childcare, it is necessary to go beyond simple cash support and expand care services that fit actual working conditions and business characteristics," adding, "Tailored support is important, taking into account shift systems in manufacturing and the nighttime and weekend business environments of small merchants."
At the roundtable, the SME community proposed to the government: ▲ easing eligibility requirements for government support programs for corporations led by women CEOs who are pregnant, giving birth, or raising children ▲ expanding support for hiring substitute workers for employers ▲ strengthening support for youth employment at and long-term retention in SMEs ▲ and establishing flexible work systems and care support policies suitable for SME realities.
The Presidential Committee on Ageing Society and Population Policy plans to review the opinions raised that day for reflection in the formulation of the national population strategy and to continue policy communication with the SME community.