Recent reports from South Korea's Ministry of Health and Welfare suggest an ongoing shift towards an older population. As a result, the country's care infrastructure is adapting to meet the changing demographic needs.
On July 4, CNN reported that the number of daycare centers across South Korea had dropped by nearly a quarter in a matter of years, reflecting the failure of the government's pro-natalist policies. According to data released by the government on June 30, there were over 40,000 daycare centers in South Korea in 2017, but by the end of last year, the number had dwindled to around 30,900.
Meanwhile, data from South Korea's Ministry of Health and Welfare show that with the rapid aging of the South Korean population, the number of elderly care facilities has skyrocketed from 76,000 in 2017 to 89,643 in 2022. These facilities, including senior centers, geriatric hospitals, and welfare institutions, primarily aim to provide social services or protection for older adults.
Currently, South Korea is experiencing both the world's fastest aging population and the world's lowest birth rate. Despite the government's efforts to boost population numbers, having spent over $200 billion in the past 16 years to provide financial incentives and housing subsidies for couples raising multiple children, the country's birth rate has been in decline since 2015. Experts attribute the low birth rate to a variety of factors, including a harsh work culture, stagnant wages, rising living costs, the economic burden of raising children, changing attitudes towards marriage and gender equality, and the disillusionment of the younger generation about their future prospects.
Among the member states of the Organisation for Economic Co-operation and Development (OECD), South Korea has the highest rate of elderly poverty, with over 40% of people aged 65 and older being defined as "relatively poor." "In South Korea, the pension system is still immature, and pensions for the elderly in Korea are still very low," stated the OECD in a 2021 report.
The recent surge in elderly care facilities in South Korea might help alleviate some of these issues. However, the country's economic future still poses challenges, as the number of younger workers - crucial for supporting healthcare and pension systems - is steadily decreasing.
