Korea: Rapid population aging to accelerate income inequity: BOK

Submitted by pmassetti on Thu, 06/15/2023 - 16:04

The Korea Times (14.06.2023) Income inequality in Korea is likely to accelerate due to a rapidly aging population, according to a report released by the Bank of Korea (BOK) on Wednesday. The report revealed that income inequality among households has worsened by 30 percent over the past 25 years, largely as a result of the aging population. "The aging population is expected to have a significant negative impact on the Korean economy, not only by lowering labor productivity and increasing the burden of care, but also by widening economical inequality," the report noted. Income inequality among those aged over 60 is found to be significantly higher than other age groups. This is because holding assets tend to play a crucial role among individuals over 60, as they see a drastic decrease in earned income after retirement. Korea became an aging society in 2000 when the population aged 65 and over exceeded 7 percent of the total population. The aging trend has accelerated since then, and it is expected that by 2025 one out of five people in the country will be 65 or older.

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