Department of International Trade 201011473 Jeongmi Lee 20081390 Eunwoo Jeong 200911373 KyeongKeun Ko 201110470 Jungwoo Hong Korea is getting old… Is Reunification.

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Presentation transcript:

Department of International Trade Jeongmi Lee Eunwoo Jeong KyeongKeun Ko Jungwoo Hong Korea is getting old… Is Reunification only the key? Have you ever thought about this?

Birth Rate↓ Aging Society Unemployment (Unstable economy ability of young people) UnmarriedChanged Values life expectancy↑ Now, the world is...

Korea is rapidly becoming an Aging Society… By OECD

Korea is rapidly becoming an Aging Society… By OECD

The Aging Society… Youth population(0~14) Old population(65~) Productive population (15~64)

 Aspect 1> Rate of Savings↓  Aspect 2> Government’s Expenditure ↑  Aspect 3> Changes in Consumption & Industry Contents> How does the aging society affect Korea’s economy?

How Aged Society affects economy?

○ Life-Cycle Income Hypothesis Franco Modigliani : People set their saving and consumption in consideration of life expectancy Actual proof analysis in Korea : Be a slow slope 1 st Aspect > Rate of Savings ↓

1 st Aspect > Rate of Savings ↓

1 st Aspect > Rate of Savings ↓

Debt repayment ability will be drop 1 st Aspect > Rate of Savings ↓

Now, Bank is no more “Distributor” 1 st Aspect > Rate of Savings ↓

Growth rate Interest rate Debt repayment ability 1 st Aspect > Rate of Savings ↓

1 st Aspect > Rate of Savings ↓

2 nd Aspect > Government’s Expenditure ↑ Reduction of Productive population (unit person)

2008 vs nd Aspect > Government’s Expenditure↑

welfare budget for senior citizen welfare budget for senior citizen ( Unit- one hundred million Won) Vs Gov budget rate(%) Vs Ministry of Health and Welfare budget rate(%) Total Expense 37% Total Tax Revenue 15% Financial Earnings & Exp enses 35trillion 2 nd Aspect > Government’s Expenditure↑

Productive population needed to serve one elderly (more than 65years old) nd Aspect > Government’s Expenditure↑

“Senior-Friendly Industry” 1) Change in General Consumption & Industry 3 rd Aspect > Changes in Consumption & Industry

2) Financial Industry : CountriesSouth KoreaU.S.JapanU.K.Australia Cash/Savings account Financial Investment Goods Insurance/Pension Others * A major factor in 2013* The source by Financial Investment Association Riskless asset (ex. Bond) Risk asset (ex. Stock) 3 rd Aspect > Changes in Consumption & Industry

2) Financial Industry 3 rd Aspect > Changes in Consumption & Industry

○ Housing Industry - Appear New types of house Barrier Free House A multiplex houseThe one-person house 3 rd Aspect > Changes in Consumption & Industry

Solutions 1) Using Aged labor 2) Increasing Labor productivity 3) Government Policy

Technical innovation Raise capital ratio per 1 employee Job training & education 1 st / 2 nd solution> Ways to Raising Labor Productivity

Performance-based System

Case : Toyota Skilled Partner : Rehire retirees as “experienced technician” Education Program : Learning Expert Ability Institution Activating Production Institution

Divide to group : Step for ability development : Afford “Ability Development Cost” Step for ability exhibition : Abolish “Pay Step System” Case : Honda

Case : Canon

内閣府の調査によりますと、80パーセントを超える 人が、「子育ての経済的な負担が大きい」と答えた一 方、 70パーセントの人が、「負担が小さければ子どもを 持ったり、増やしてもいいと思う」と答え、 経済的な負担が少子化の要因となっていることをうか がわせています。 3 rd solution> Government Policy

内閣府の調査によりますと、80パーセントを超える 人が、「子育ての経済的な負担が大きい」と答えた一 方、 70パーセントの人が、「負担が小さければ子どもを 持ったり、増やしてもいいと思う」と答え、 経済的な負担が少子化の要因となっていることをうか がわせています。 Q. What do you think is the most burden can take on childcare ?

内閣府の調査によりますと、80パーセントを超える 人が、「子育ての経済的な負担が大きい」と答えた一 方、 70パーセントの人が、「負担が小さければ子どもを 持ったり、増やしてもいいと思う」と答え、 経済的な負担が少子化の要因となっていることをうか がわせています。 Q. If economical problem would be solved, will you give a birth?

※ Angel plan & New Angel Plan (1995~) 1) 40% of the wages received during the Maternity Leave 2) Expand the nursery admission of low-age children 3) Expand multifunctional childcare facilities 4) Promotion of child care services in accordance with the diverse needs 3 rd solution> Government Policy

1. Infant allowance & Child allowance 3 rd solution> Government Policy

1. Infant allowance & Child allowance

2. Maternity (Child Care) Leave 3 rd solution> Government Policy

3 rd solution> Evaluation of the Angel Plan Infant allowance Maternity (Child Care) Leave Child allowance

3 rd solution> Evaluation of the Angel Plan Infant allowance Maternity (Child Care) Leave Child allowance

3 rd solution> Government Policy Tax-exem pt child care supplies Create childca re environme nt Support from the government

If Korea reunify => be Younger again. Senior (65+) Youth &Prime(15~64) Juvenile (0~14)

“The Great Korea” Korea VS The Great Korea Population : 1.5 more larger Ratio of Working Age Population : 4% more larger

Korea VS The Great Korea GDP : 1.4 more larger National Power Rank : Place 4 steps higher “The Great Korea”

THANK YOU ^^