Prepare for era of extreme aging

Korea is expected to have the world's oldest population by 2060, surpassing Japan. This projection, according to a 2025 report from the U.S. Census Bureau, is more than a statistical curiosity; it serves as a warning that one of the world's most advanced economies is facing an unprecedented challenge to its pension, healthcare, labor, and fiscal systems.

The report projects that the share of Korea's population aged 65 and over will increase from 20.3% last year to 41% in 2060, the highest in the world. Furthermore, the proportion of those aged 80 and above is anticipated to nearly quadruple, from 4.8% to 18.3% by the same year.

Perhaps most alarming, the old-age dependency ratio is projected to surge from 29.5 elderly individuals for every 100 working-age adults to 81.6. In practical terms, this means fewer than two workers will be supporting each older person, a situation that is not merely a welfare challenge but one that threatens economic growth itself.

The era when a large working-age population provided a demographic dividend is coming to an end. Korea is entering an era of demographic drag, characterized by a shrinking labor force, rising dependency, and growing demand on public resources.