Elderly care in South Korea - statistics & facts
Population aging has become a central issue in South Korea, often intertwined with related issues such as low birth rates and immigration. In 2023, there were around 164 elderly people aged 65 years and older for every 100 children aged 14 years and under. This was projected to increase to nearly 739 elderly people for every 100 children by 2070, potentially halving the working population. This is set to have far-reaching consequences for Korean society as pressure on the social welfare system, the labor force, and the economy increases.
As the working force shrinks and demand for elderly care and social welfare benefits rises, South Korea is facing a looming demographic crisis. Without enough young and working people to replace those retiring, the country is struggling to support its population and meet demand for care and welfare support.
Low birth rates, low immigration, and demographic shifts
According to the CIA, South Korea had the second-lowest fertility rate worldwide in 2023, at an estimated 1.11 births per woman. The reality was even harsher, with actual birth rates being lower, at 0.72 births per woman. The country also has a low, albeit positive, net migration rate at 0.39 migrants per 1,000 people in the population in 2023, which is forecast to only slowly increase in the coming decades. As such, it is unlikely that South Korea will attract enough immigrants to replace the disappearing youth and workers. Simultaneously, the demographic shift towards the elderly has caused an increased need for care workers and institutions as well as a budgetary strain on social welfare systems funding healthcare, pensions, and other benefits.Increased demand for elderly care and welfare
As a natural consequence of the aging of the South Korean population, demand for elderly care as well as social benefits have risen. Since 2002, the number of people receiving national pension payments has increased six-fold, resulting in a rapid increase in pension benefit payouts that must be funded. Healthcare costs have risen as well, with per capita costs of nearly five million South Korean won in 2021. Around 11 percent of the elderly population require long-term care, causing both long-term care facilities and especially long-term in-house care services to continuously increase in number. South Korea has one of the highest relative poverty rates among seniors across all OECD countries, at about 39 percent. A 2021 survey confirmed this sentiment, and further found that retirees often relied on financial support from governmental and social organizations as well as their children and other relatives.As the working force shrinks and demand for elderly care and social welfare benefits rises, South Korea is facing a looming demographic crisis. Without enough young and working people to replace those retiring, the country is struggling to support its population and meet demand for care and welfare support.
