Yoo Chang-yong, the governor of the Bank of Korea, warned that if the current trend of low birth rates continues, the country's potential growth rate would plummet to around 0% by 2040.
Governor Yoo made these remarks at the opening conference of the 'Population and Research Institute' held at Yonsei University's Daewoo Hall on the 21st.
He noted, "Our country has already entered a super-aged society, and last year the total fertility rate was 0.75, facing a serious low birth rate crisis," adding, "If the current birth rate continues, the country's population is expected to rapidly decrease to around 30 million in 50 years."
He continued, "It is difficult to avoid a gloomy outlook that the potential growth rate will decline from the current level of 2% to around 0% by the late 2040s." The potential growth rate refers to the growth rate achievable when resources such as labor and capital are utilized to their maximum.
Governor Yoo stated, "The low birth rate phenomenon is a result of various structural problems facing our society, such as concentration in the metropolitan area, heated competition in education, employment, housing, and childcare insecurity among young people, and a rigid labor market," adding, "Even if we have to endure some short-term difficulties, long-term efforts are urgently needed at this time."
In particular, he expressed regarding the education system, "The current exam-centered system has limitations in providing opportunities for young people to challenge themselves and demonstrate creativity," and noted, "I sincerely hope that the university entrance exam system will change in a direction that fosters talents with diverse backgrounds and experiences."