South Korea faces existential issue: OECD

Empty cradles in a newborn room at a public postpartum care center in Seoul, South Korea, on December 26. The South Korean economy is poised to continue its recovery in the latter half of this year but the country must address its "existential issue", which stems from problems such as low productivity and a declining population, the Organization for Economic Cooperation and Development said on July 11. "We publish surveys every two years, but this one is about an existential issue for Korea," said Vincent Koen, the OECD's country studies division chief in the economics department, during a press briefing at the Ministry of Economy and Finance building in the city of Sejong. One urgent issue South Korea must address is the population decline and its notoriously low fertility rate, according to the OECD Economic Surveys: Korea 2024 report released that day. Meanwhile, the OECD survey report forecast a 2.6 percent growth outlook for the South Korean economy this year, driven by improved exports and strengthening domestic demand in the second half.