Signs of Aging Society
Recent data reveals that Korea is one of the fastest-aging societies in the OECD, and Koreans are unprepared. Obviously, policymakers should prioritize policies and measures concerning the population.
Statistics Korea reported that those aged above 65 accounted for 30.5 percent of all medical insurance bills in 2009. For the past two decades, the number of primary-school students has fallen by 30 percent. The average age for the first birth for women rose above 30.
There is no denying the statistics indicate that the nation is one of the world’s fastest-aging societies with the lowest birth rate.
Senior citizens aged above 65 accounted for 11 percent of the population in 2009. Their share will rise to 38.2 percent by 2050, meaning that 1.4 persons will eventually have to take care of one elderly.
Despite the graying of the population, Korea’s savings rate of 2.8 percent is the fifth lowest in the OECD. Korea was behind the United States in the savings rate last year. In less than three decades, the country has transformed from the highest savings country to one of the lowest savings countries.
The nosedive in the savings rate is attributable to the attractiveness of property investment, a low-deposit rate and a surge in private education and medical bills.
In a nutshell, the result is Koreans save less and borrow more than Americans.
The falling savings rate is an ominous sign that Koreans are now less and less prepared for rainy days. It may also lead to a loss of economic vitality due to falling investment and consumption.
The rapid demographic changes led to single-person dwellings accounting for 23.3 percent of households.
Unless proactive steps are taken to increase the population, Korea may become second Japan.
The aging society will also drain state coffers and sap economic vitality. Seoul needs proactive long-term policies to keep the nation young, dynamic, and, most importantly, populated.
Reference: www.koreatimes.co.kr
Guide Questions:
1. Is Korea prepared for a population that's aging so fast?
2. Are most Koreans concerned about statistics showing that Korea is one of the world's fastest-aging societies?
3. Why has Korea become one of the lowest savings countries?
4. What would it be like if Korea became second Japan?
5. What should the government do to prevent that from happening?
6. How can the government keep the nation young, dynamic and populated?
7. Do Koreans support the government's programs to increase the birth rate in your country?
