Aging of South Korea

Unlike in countries in Europe where fertility rates naturally fell below the level of population replacement due to industrialization and socio-cultural factors, Korea's birthrates fell sharply due to birth control policies. In the early stages of industrialization, the decline in potential fertility was involved in raising the per capita income level by suppressing rapid population growth and achieving rapid economic growth. As a result, the decline in population is likely to be greater than in other developed economies during the period of natural decline after industrialization. Korea's birth control policy began in the 1960s and ended in the mid-1990s when birth rates fell significantly below the level of population replacement. As a result, Korea's fertility rate has declined to about half from the end of the 1970s to about 1.5 at the end of the 1980s. In the 2000s, when low birth rates began to become a problem, the government turned to the population policy, but the birth rate has declined at a more rapid rate than any other country, as the birth rate of advanced countries has declined as well as the exogenous birth rate.[5]

On the other hand, Korea has a tendency to increase the proportion of adult males compared to other countries except for the Korean War during the 1950s, according to the traditional preferences of South Korea. In developed countries, high-income countries, or Japan, where sex ratios are not much greater than in Korea, the rate of birthrates slowed more slowly. This suggests that if the hysteresis effect of South Korean preference is gradually weakened and the gender ratio of male and female generations in the future is restored to balance, the negative effect on the falling birth rate may be offset.[5]

As mentioned above, the housing price increase rate is an indicator used in the analysis of marriage or parenting costs in Korea. In general, it is recognized that the increase in housing prices affects coma costs or parenting costs. Statistically, the housing price increase rate in Korea and the marriage rate and fertility rate are negatively correlated. As housing prices rise, the number of marriages or fertility rates drop significantly.[5]

As such, marriage costs and child-rearing costs add to the burden on marriage and indirectly affect fertility rates. In addition to the cost of marriage, analysis of the points that unmarried men and women pointed out as necessary for marriage policy revealed that the factors that make marriage difficult are youth unemployment, the disadvantages of marriage, workplace weddings, and long hours of work practices.[5]

While the number of elderly people is increasing, the total cost of raising the number of young children and the elderly to support every 100 people in Korea's production age is expected to soar from 37.6 in 2019 to 120.2 in 2067, the figure is expected to rise to the highest level in the world.[2]

In particular, the number of people aged 65 or older who will be supported for every 100 people in the productive age group will surge five-fold from 20.4 in 2019 to 102.4 in 2067. South Korea's best growth is expected to pick up around the world outlook also exceeded 100 costs and keep old age. In the same period, the world's total maintenance is only to 2019, up from 53.2 million to 62.0, 2067 Old age support ratio is 2019 from 14.0 2067, rose to 30.2. Shot up from 43.7 years old in 2020 is our country by median age of 62.2 years old, 2065. By median age is age to list in the order of the total population means a person's age in the center. 1.2 years old from Europe (42.5 years), a high level until next year, but it is by median age of our country, 14.6 years old will be higher than Europe (Also, 47.5 years old) in 2065. By the median age of the world's population was 30.9 years old in 2020 from 38.2 years old will rise by 2065.[3]

People have different economic needs and different degrees of contribution to the economy at each stage of their lives. In general, people do not have income activities in their childhood, but they do not have access to learning activities under the care of their parents. Focus on production and generate income until you retire from youth saving money for the future, living based on assets accumulated in the youth and the old age.[6]

As the average life expectancy grows older, the problem of poverty may intensify. Accordingly, the 3rd Basic Plan intends to strengthen the public and private retirement income security system. To relieve blind spots in public pensions, the government will expand women's pension entitlements and increase their participation in national pensions such as one-time and part-time special employment.

The plan is to establish a one-person national pension system. The plan is to increase membership by easing the requirements for housing pension and farmland pension. We will improve the financial system in preparation for long-term risks due to the safety assets of the elderly and expand the retirement preparation services so that they can prepare for their own retirement.[7]

To improve the quality of life of the elderly, we will expand the conditions to improve the quality of life for the elderly. This includes efforts to create a safe living environment. Specifically, the process includes vitalizing the health mileage system, strengthening chronic disease management, expanding comprehensive nursing care and nursing services, strengthening long-term care insurance system quality management, and reinforcing hospice palliative care services. We will support the health of the elderly by supporting them. The company plans to support active retirement by expanding social participation opportunities such as developing leisure culture tailored to the elderly and expanding participation in volunteer support. We will create a safe living environment by expanding rental housing for the elderly, mandatory safety training for senior drivers, and reducing traffic accidents for elderly pedestrians through the establishment of elderly protection zones.[7]

As the decrease in the number of people available for production began in earnest in 2016, we are devising measures to utilize women, middle-aged and foreign workers. Women's employment will be activated by diversifying the form of work such as part-time work and strengthening the reemployment support system for career-breaking women. We will strengthen the working base of middle-aged and older workers by spreading the wage peak system to establish the 60-year-old retirement age system and mandatory life support service. In order to expand the recruitment of overseas talented individuals, especially in areas where there is a shortage of domestic specialists, we will provide opportunities for long-term employment and settlement, and establish a mid- to long-term immigration policy to utilize foreign workers.[7]

As the elderly population grows, active efforts for the aged-friendly industry are needed. Therefore, the 3rd basic plan aims to foster the industrial sectors such as medical care, tourism, and food related to the elderly, and to support the development of universal design and user-oriented elderly-friendly products. Meanwhile, in order to cope with the reduction of school age population due to low birth rate, we will promote university structural reform, teacher training, and reschedule supply and demand plan. Let's race. In order to cope with the declining population in rural areas due to aging and urbanization, the government also proposes measures to revitalize return-to-home villages. Finally, it plans to reform the national pension system and stabilize the income base of health insurance to manage the financial risk of social insurance. The government will also plan to reform special occupational pension plans. For the efficient use of national finance, the government proposes measures to reorganize quasi-duplicate financial projects, expand revenue bases, and manage mid- to long-term financial risks.[7]