The country's average birth rate is 1.26 children per woman, putting Korea among countries with the lowest rate in the world.
The situation can cause problems down the road such as a reduced work force as society ages, which can eventually undermine national competitiveness.
Making matters worse, an ever-growing number of youngsters are shunning the idea of giving birth. A survey by Seoul City of university students revealed that only 50 percent believed giving birth is a must when getting married.
The reasons are the difficulty of juggling a career and child raising and the huge cost of education and raising a child.
On the other hand, a majority said they would consider having more than two children if the conditions improved. Experts say improving conditions is therefore key to lifting the sagging birthrate.
To address the issue, Seoul City hosted a workshop where college students produced some novel ideas. One involved childcare by senior citizens to ease the burden of childcare while at the same time offering a source of income for the elderly. The city aims to reflect the ideas in developing its policies.