(EDITORIAL from Korea Herald on Sept. 9)

South Korea is facing an unprecedented demographic shift, with its senior population rapidly expanding and the working-age population dwindling. By 2060, seniors are projected to make up over 40 percent of the population, compared to Japan's 38.8 percent. This will leave an extremely low ratio of working-age adults to support the elderly, potentially as low as 1.2 per senior by 2060.

The aging population poses a significant challenge. The old-age dependency ratio, which counts elderly people for every 100 working-age adults, is projected to soar from 29.5 in 2024 to 81.6 by 2060. This means the nation will have to restructure its institutions to accommodate fewer workers, longer lives, and a much greater financial burden on pensions and care.

Seoul has invested heavily in parental support and incentives, but the high costs of childcare, education, and tutoring continue to deter family formation. Policy must adapt to support families raising children outside traditional marriage structures as well.

Productivity can be maintained even with a smaller workforce through investment in advanced machinery, robotics, and artificial intelligence. Korea should focus on output per worker rather than workforce size. Labor market rules that reward seniority can be replaced with task-based or performance-based pay to keep older workers employed while giving younger people more flexibility.

The nation also grapples with a high elderly poverty rate, the highest among OECD members. While the pension system has lagged, longer life expectancies and increasing dementia rates will strain health and long-term care systems. As family structures shrink, the unpaid care provided by family members will become unsustainable. Policy should consider raising the eligibility age for certain benefits, but this must be paired with stronger safeguards to protect the most vulnerable elderly population.

In summary, South Korea must overhaul its labor, fiscal, and social policies to adapt to an aging society. Failure to do so will jeopardize the country's economic viability and quality of life for its citizens.