South Korean President Yoon Suk-yeol on Thursday said his government's efforts to improve people's lives had fallen short, conceding his ruling party's crushing election defeat last month reflected voters' assessment of his two years in office.

In his first press conference in 21 months, Yoon pledged to focus on improving the economy and tackling what he called the national emergency of flagging birth rates over the three years he has left in office.

"I think the important thing going forward is indeed the economy," he said.

"Corporate growth and job creation are important too but what I think is more important is to try harder to look for what is inconvenient in the life of each and every person and to resolve them."

South Korea's economy beat most forecasts to grow 1.3 percent in the first three months of this year, but living costs have remained stubbornly high, despite some progress in tackling inflation.

In a new policy push, a government ministry would be set up to tackle the record low birth rate and fast-ageing population, Yoon said in opening remarks from his office, behind a plaque reading "The Buck Stops Here."

South Korea's fertility rate, already the world's lowest, maintained its dramatic decline in 2023, as women cited concerns about bearing most of the burden for raising children, lost career opportunities, and the financial cost of raising kids as reasons to delay childbirth or to not have babies. (Reuters)