SEOUL - South Korea, the fourth-largest economy in Asia, is grappling with an unprecedented demographic crisis as birth rates continue to plummet. Despite numerous government interventions, the nation’s youth seem more invested in personal satisfaction and luxury spending than in family planning.

For generations Y and Z, the financial burden of child-rearing, combined with a cultural shift towards immediate gratification, has made parenthood less appealing. Park Yeon, a 28-year-old fashion influencer and aspiring singer, epitomizes this trend. "I'm all about YOLO (you only live once)," Park said at a thrift fashion festival in Seongsu-dong, one of Seoul's high-fashion districts. "Getting married might happen at some point, but being happy right now—that's more important, right?"

South Korea's birth rate has been the lowest in the world for several years, reaching a new low in 2023. Policymakers are now contemplating the creation of a dedicated ministry to address the demographic challenges. However, experts like Jung Jae-hoon, a sociology professor at Seoul Women's University, suggest that the government’s efforts may be in vain as younger Koreans prioritize status and online success over traditional milestones like marriage and children. “They are status hunting. Their high spending habits show young people are working on their own emblems of success online rather than focusing on the impossible goals of settling down and having children,” Jung remarked.

Indeed, South Korea’s younger generations are spending more than ever on luxury goods and experiences, with central bank data revealing a decline in savings rates among those in their 30s, from 29.4% five years ago to 28.5% in the first quarter of 2024. At the same time, spending on high-end goods and services has surged. For instance, the proportion of spending by those in their 20s at high-end department stores nearly doubled to 12% in the three years leading up to May 2024, according to data from Hyundai Card. Additionally, revenue at premium buffet restaurants like Seoul Dragon City Hotel soared by 150% over the past year, despite price hikes.

This trend is in stark contrast to other developed nations. In Australia, for example, 25- to 29-year-olds cut their spending by 3.5% in the first quarter of 2024 due to cost-of-living pressures, according to a report by the Commonwealth Bank of Australia.

Financial insecurity remains a significant factor in South Korea's declining birth rate. A survey by research firm PMI Co. in May 2024 found that nearly 46% of South Koreans cited job uncertainty or the high cost of education as reasons for not having children. This is compounded by slow wage growth, with incomes for those in their 20s and 30s increasing by just 2.0% last year, compared to a 4.5% rise for all households, according to Statistics Korea.

Despite the Yoon Suk Yeol administration’s announcement in May to create a new ministry focused on demographic issues, and previous initiatives like subsidies for reversing vasectomies, cash support for families with newborns, and extended childcare leave, the country’s birth rate shows no signs of recovery. South Korea’s materialistic culture may be partly to blame. A 2021 Pew Research Center survey of 17 advanced countries revealed that South Koreans prioritized material well-being as the most important factor in life, unlike respondents from other nations who valued family or health more highly.

South Korea's record-low birth rate, which fell to 0.72 in 2023, despite extensive government efforts to reverse the trend. Most women have chosen to remain child-free due to difficulties in finding equal partners, demanding work cultures, and the high cost of living. The societal pressure on women to choose between careers and motherhood further exacerbates the issue.

For individuals like Park Yeon, the future remains uncertain. "If things work out well with what I do, savings and getting married and all those will follow. For now, enjoying my life and working on my dream job are my priorities," she said.