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 ^^