Defining a Super-Aged Society
According to the United Nations, a country is a "super-aged society" when over 20% of its population is aged 65 or older. This follows "aging society" status (7% over 65) and "aged society" status (14% over 65). South Korea reached this benchmark in late 2024, joining nations like Japan.
The Accelerated Pace of South Korea's Aging
South Korea's transition to a super-aged society has been remarkably fast, occurring in just seven years, in contrast to the longer periods taken by other developed nations like Japan. This rapid aging is primarily due to high life expectancy and the world's lowest fertility rate.
Driving Forces Behind the Shift
The demographic shift is driven by several factors:
- Lowest Fertility Rate: South Korea's fertility rate was 0.72 in 2023, well below the replacement level of 2.1. Reasons include high education costs and work-life balance challenges.
- High Life Expectancy: South Korea is projected to have the highest life expectancy globally by 2040. This longevity, combined with low births, significantly increases the proportion of older adults.
Socio-Economic Impacts and Challenges
Becoming a super-aged society presents South Korea with substantial economic and social challenges.
- Economic Strain: A smaller working population can hinder economic growth and innovation. The increasing number of retirees strains pension systems and public services.
- Social Welfare and Healthcare: An older population requires greater expenditure on healthcare and social services, particularly long-term care. Pension funds face future deficits.
- Loneliness and Elderly Poverty: A rise in older adults living alone increases the risk of social isolation and poverty. South Korea has a high rate of elderly poverty among OECD countries.
Government Responses and Ongoing Efforts
The government has declared this demographic situation a "national emergency" and implemented policies, including:
- Financial Support: Incentives like subsidies and childcare support aim to encourage child-rearing.
- Pension Reform: Efforts are underway to strengthen retirement income systems, though further reforms are needed.
- Workforce Expansion: Proposals to extend working lives for older citizens, such as raising the retirement age, have been met with some resistance.
- Care Infrastructure: Expansion of elder care facilities and services is a focus.
Comparison: South Korea vs. Japan
Comparing South Korea to Japan, another super-aged society, highlights key differences:
| Feature | South Korea | Japan |
|---|---|---|
| Pace of Aging | Very rapid (7 years to become super-aged) | Gradual (10 years to become super-aged) |
| Fertility Rate (as of 2023) | 0.72 (World's lowest) | 1.26 (Below replacement rate) |
| Elderly Poverty | Among the highest in OECD | Lower than South Korea, but significant challenge |
| Government Response | Reactive policies evolving into structural reforms; declared a national emergency | Decades of policy experience; earlier implementation of structural changes |
| Key Challenges | Speed of demographic change, social welfare system strain, elderly poverty | Pension system strain, labor force contraction, rural depopulation |
The Outlook for South Korea
South Korea faces significant challenges and opportunities due to its rapid aging. The speed of this shift necessitates decisive policy action. There is potential for an "age-friendly" economy, integrating older citizens and developing new industries. Addressing issues like elderly poverty and social support is vital. The country's response to this demographic change will determine its future trajectory. For more on the economic implications, see Morgan Stanley's analysis(https://www.morganstanley.com/ideas/south-korea-population-decline-aging-crisis).
Conclusion
South Korea's official entry into a super-aged society marks a critical juncture with significant economic and social consequences. Driven by the world's lowest birth rate and increasing longevity, the situation has been declared a national emergency. While challenges are substantial, implementing structural reforms and building national consensus offer South Korea a chance to create a model for a successful aging society.
