Critics call plan underfunded and incomplete
The government has drafted a plan to prevent the negative effects expected from the rapid aging of South Korean society, but critics have said the government has no way to raise the funds necessary for their proposal. The draft was drawn up by 18 ministries and state agencies, including the Ministry of Health and Welfare, the Ministry of Labor, and Ministry of Planning and Budget. Other critics of the plan have said that the administrative system aimed to responsibly implement the proposed policies is incomplete.Under the plan, the government would inject about 32.7 trillion won (33 million USD) to reverse Korea’s low fertility rate and curb the nation’s aging by 2010. To do so, from 2006 the government needs 6.4 trillion won annually on average. The government will earmark 1.8 trillion won to raise the birthrate, 7.2 trillon won to tackle the rapid transition into an aged society and 6 trillion won to expand "driving forces" behind the country’s future. Additionally, as a program to give 100,000 won every month to multiple-child families will be included into the plan, the size of the budget is expected to further increase. This program alone will require an estimated 4.5 trillion won for the next five years. The draft does not state a concrete method to come up with the money. It only explains that 35.1 percent, or 11 trillion won, will be provided at the government’s expense, 40.5 percent, or 13 trillion won, at local expense and 24.4 percent, or 7.8 trillion won, through fundraising. Some are saying that a new tax needs to be introduced to fund the government plan. To solve the problem of South Korea’s low birth rate, the government suggested new programs such as expanding assistance for childcare and education, granting incentives to encourage adoption and providing additional after-school programs. These proposals carry with them another 1.5 trillion won price tag between 2007 and 2010 alone. Among measures in the current proposal, a national pension program, improvement of health insurance policy, and a program for the reduction of miscarriage were already included in past government plans for combating the problem. The same goes for measures to prevent the nation from becoming an aged society, such as providing jobs for senior citizens: these are also retreads of former government proposals. The biggest hurdle the government faces is that there are no concrete measures to reverse the trend of low childbirth rates among Korea’s young generation. Lee Sam-sik, a senior researcher of Korea Institute of Health and Social Affairs, said, "The latest plan contains no measure about the problem of late or no marriage among young people. If they marry older, it becomes more difficult for them to have children. In this respect, we need an effective measure." One of the main reasons cited for young people avoiding marriage is worries over unstable employment. However, there is also no practical countermeasure for the government to take regarding the matter, barring a complete overhaul of South Korea’s employment system. Like ’Hope Korea 21,’ a previous government proposal on the issue that was shelved, the Ministry of Planning and Budget may object to securing the budget. Besides budgetary concerns, concerns have been raised about effective administrative support being in place for all aspects of the plan. Additionally, it is unclear that the industrial world will accept some of the plan’s suggestions, such as extending the retirement age, adjusting the period of maternity leave, and an affirmative-action-style plan aimed at boosting the hiring rates of female workers.
