The Financial Analysis of Measure to Cope with Low Fertility and Ageing Trend

  • 2009-10-15
  • 327
  The present book: the 4th series study coping with low-fertility and ageing trend is published with the aim of indicating the problems and profound policy implications of the government's measure against low-fertility and aging society. According to 2006~2010 basic low-fertility and ageing society plan(Saromazi Plan 2010), the government has invested more than twenty nine thousand billion won in the areas of childbirth, nurture and aged society, dynamic force for growth. However, the policy measures need to be improved in terms of budget, governance structure and system to enhance their effects.
The recommendations are as follows; First, the government's policy measures such as child-care support, universal basic pension and long-term medical treatment insurance for the old may impose tremendous burden to national finance. Therefore, effective finance guarantee like raising social insurance rate should be prepared to face this problem. Second, since most of the government's low-fertility policy measures focus on the low-income group, we need to consider introducing means-tested universal child-care benefit in the future, so as to increase the Korean's sensory level of policy measures. Third, as labor-force participation rate of female and the old remained below the OECD average rate, we try to reform policy measures so that 'Compatibility with Work and Child-care' and labor force participation rate of the old to be promoted. Last, 'Low-Fertility and Ageing Society Council' under the Ministry of Health and Social Welfare jurisdiction is required to attain higher status to control the multi-ministries, involved in policy measures effectively. At the same time, we need to set up 'Low-Fertility and Ageing Society Committee' in National Assembly in order to respond low-fertility and ageing trend ensuring well-functioning check and balance system with the government.