Korea’s low birthrate puts economy at risk: World Bank chief

Ajay Banga, president of the World Bank [Photo by Yonhap]

The chief of the World Bank warned on Thursday that South Korea’s economy could face a growth cliff if the country fails to address its record-low birthrate structure.

Ajay Banga, president of the World Bank, met with reporters during his visit to Seoul, and emphasized the importance of population growth for the country to secure its future. He advised implementing sufficient incentive systems for women giving birth.

Banga stressed the need to ensure that women receive proper compensation both during pregnancy and after childbirth. He cited the discrimination faced by women in terms of salary and job responsibilities due to childbirth as the primary cause of the low birthrate.

Highlighting the principle of equal pay for equal work, he called for measures to facilitate women’s return to the workplace without any gap during pregnancy and childbirth to improve gender disparities.

He also underscored the role of companies in resolving gender disparities in the workplace. He said that discrepancies in salaries based solely on gender, despite performing the same job, can be relatively easily monitored by companies. He mentioned equal opportunities for both men and women as a fundamental aspect of how society operates.

Banga also pointed out that couples may not want children if the cost of raising a child becomes excessive or if competition becomes intense.

Banga, in the meantime, expressed that Korea could make strides in the fields of education and artificial intelligence (AI) technology in developing countries.

Praising Korea’s experience in primary and secondary education, human resource development, and AI and sensor technology, he cited the country’s experience and technology as valuable assets for agriculture and other fields needed by developing countries.