Bank of Korea(BOK) Gov. Rhee Chang-yong has cited the nation’s low birth rate and aging society, as well as climate change, as the key factors that threaten South Korea’s sustainability. 

In a keynote speech at the Global Engagement and Empowerment Forum on Sustainable Development in Seoul on Friday, Rhee warned that the nation’s potential economic growth will slip to the zero percent range in the late 2040s before posting negative growth in the 2050s if the current low birth rates continue. 

Rhee said young adults put off marriage and childrearing, or give up on them altogether, due to high competition and uncertainties surrounding employment, housing and child care. 

He said such competition and uncertainties are the result of people flocking toward the Seoul metro area for better access to jobs and private education. 

In response, the BOK chief proposed fostering two to six hub cities that would receive active policy support, and introducing a system for first-year university admissions that would encourage a fairer balance in the distribution of students across the country. 

On climate change, Rhee stressed the need to revise the Korean Green Taxonomy in line with international standards and to enhance the Korea Emissions Trading Scheme, which is designed to help the nation achieve its carbon neutrality goals by 2050.