Prepare for era of extreme aging

Korea is set to experience an era of extreme aging as it is projected to have the world's oldest population by 2060, surpassing Japan. This alarming demographic shift, revealed in a 2025 report by the U.S. Census Bureau, could pose significant challenges to the country's pension, health care, labor, and fiscal systems. Currently, 20.3 percent of Korea's population is aged 65 and over and is expected to surge to 41 percent by 2060, making it the age group with the highest proportion worldwide.

Furthermore, the percentage of individuals aged 80 and above is expected to nearly quadruple, rising from 4.8 percent to 18.3 percent. Perhaps most concerning is the impending demographic burden, as the old-age dependency ratio is expected to skyrocket from 29.5 elderly individuals per 100 working-age adults to a staggering 81.6.

This means that fewer than two workers will be supporting each older person, presenting a formidable challenge to the nation's economic growth. Beyond just a welfare concern, this demographic transition represents a shift from the era when a substantial working-age population provided a demographic dividend, signaling the end of a period when Korea reaped the benefits of its youthful workforce.