Cradles are empty at a postnatal care center in Seoul, Dec. 26, 2023. Yonhap

Rival parties on Thursday rolled out their respective policy promises aimed at revitalizing Korea's sharply declining birthrate as part of their campaigns for the upcoming general elections in April. These initiatives are in response to concerns that the ongoing demographic decline could potentially lead the country's economy to regress in the near future.

The main opposition Democratic Party of Korea (DPK) unveiled a comprehensive set of measures at the National Assembly to address the low birthrate. Emphasizing housing, financial, and childcare support for newlywed couples, these measures aim to counter the demographic challenges facing the country.

"The country's total fertility rate is set to fall below 0.5 births in two years, which is an unacceptable number," DPK Chairman Rep. Lee Jae-myung said.

"This is a matter of the country's sustainability, and it is an imminent challenge right at our doorstep rather than a concern in the distant future."

Korea is recognized for having the world's lowest fertility rate of 0.78 birth per woman in 2022. This figure is considerably lower than that of the United States, which stood at 1.64, and Japan at 1.33 in the same year.

Lee emphasized that the fundamental reason for choosing not to have a baby is "inequality," highlighting that "inequalities in assets and incomes are serious."

Main opposition Democratic Party of Korea Chairman Rep. Lee Jae-myung announces a package of measures to address Korea's low fertility rate at the National Assembly in Yeouido, Seoul, Thursday. Yonhap

The DPK pledged to offer public-rental homes to couples having more than one baby, with the added advantage of being able to purchase the homes at their initial sale prices after residing there for a specific rental period. For couples with two babies, 79-square-meter rental homes will be provided, while those with three or more babies will be eligible for 109-square-meter homes.

In terms of financial support, the party has decided to implement "marriage and childbirth subsidies" and extend a 100-million-won ($74,000) loan to all newlywed couples, irrespective of their income level. Additionally, they plan to offer discounts on both interest and principal repayments.

For instance, when the first baby is born, all loan interest will be exempt, and half the debt will be written off with a second child, while a third child will mean an exemption from repayment obligations.

Also, the DPK pledged to expand a state-run babysitting program, making it accessible for all families to apply, and raising the wages for babysitters participating in the program.

The DPK's policy promises are focused on providing economic boosts to newlywed couples regardless of their income levels.

"There can be questions on why the country should support the high-income bracket, but if we exempt those who are paying a lot of tax, it can be discriminatory," Lee said. "Having a child and raising one is not a matter concerning individuals but the entire country. So the support should be universal to all."

People Power Party interim leader Han Dong-hoon, left, takes notes during the party's interim leadership meeting at the National Assembly in Yeouido, Seoul, Thursday. Yonhap

Hours after the DPK's announcement, the ruling People Power Party (PPP) also released a series of policy pledges to boost the country's fertility rate.

PPP interim leader Han Dong-hoon said the party will push for the establishment of a new ministry for demography, to be led by a deputy prime minister. The new ministry will incorporate the existing functions of the Ministry of Gender Equality and Family.

In contrast to the DPK, the ruling party's pledges primarily centered on adjusting government systems and programs to enable parents to spend more time with their children without worrying about discontinuing their careers.

"We are a responsible ruling party, so we will roll out feasible policies," Han said. "Policy promises that do not consider financial sources are not the right measures for the people."

The PPP intends to mandate companies to have their employees apply for parental leave concurrently with maternity leave. Additionally, the PPP aims to amend laws and regulations to enable employees to take up to one month of leave when their spouses are giving birth, an increase from the current 10 days, fostering greater involvement of both parents in childcare.

"Although there are many ideas to counter the low birth trend, I believe the most important thing is changing our perspective that we have to help parents work," PPP emergency committee member Chang Seo-jeong said during a meeting, Thursday.

"Of course there are parents who want to concentrate about giving birth and raising their babies, there are others who want to minimize the vacuum stemming from their children and maintain their lives and careers. We need to empathize with the fear of discontinuing their careers that women and newlywed couples have."