Korea has always been a densely packed, fast-moving country that offered a glimpse into the future. For instance, it was one of the first places where you could see the impact of a society fully connected by high-speed internet.
Today, however, Korea reflects a more troubling global trend: a dramatically low fertility rate. At this point, Koreans are practically an endangered species, with the lowest birth rate in the world.
Why? I’m sure there’s no shortage of academic papers or Youtube videos on the topic, but from my personal perspective, here’s a three-point summary:
- Korea used to be a high-growth society generating abundant new economic opportunities. That’s no longer the case. It’s now a stable, low-growth economy
- With fewer new opportunities, competition intensifies. There’s extreme pressure to live in neighborhoods with expensive private education that boosts the chance of getting into prestigious universities
- The steep competition leaves many young people feeling hopeless and pushed out. They give up. They can’t buy a house. Without hope, they significantly delay or forgo marriage and starting a family
So what’s the solution? Who am I to say – if the solution were easy, somebody must have figured it out already. But in my personal opinion, startups are the best (or maybe the only) path forward. We need to create more economic opportunities. To do so, Korea needs its next Samsungs. And any future Samsung will, by definition, begin as a startup.
I write this because many friends and connections have asked about it. A similar, though perhaps less severe, trend is happening in US cities too. My personal belief is the same: we need more new economic opportunities. Or more simply put, we need more startups.