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

Presentation on theme: "Department of International Trade 201011473 Jeongmi Lee 20081390 Eunwoo Jeong 200911373 KyeongKeun Ko 201110470 Jungwoo Hong Korea is getting old… Is Reunification."— Presentation transcript:

1 Department of International Trade 201011473 Jeongmi Lee 20081390 Eunwoo Jeong 200911373 KyeongKeun Ko 201110470 Jungwoo Hong Korea is getting old… Is Reunification only the key? Have you ever thought about this?

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

3 Korea is rapidly becoming an Aging Society… By OECD

4 Korea is rapidly becoming an Aging Society… By OECD

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

6  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?

7 How Aged Society affects economy?

8 ○ 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 ↓

9 1 st Aspect > Rate of Savings ↓

10 1 st Aspect > Rate of Savings ↓

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

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

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

14 1 st Aspect > Rate of Savings ↓

15 2 nd Aspect > Government’s Expenditure ↑ Reduction of Productive population (unit-10.000 person) 2010 2020 2030 2040 2050

16 2008 vs 2020 2 nd Aspect > Government’s Expenditure↑

17 welfare budget for senior citizen welfare budget for senior citizen ( Unit- one hundred million Won) Vs Gov budget rate(%) 1999 2003 2005 2007 2008 2009 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↑

18 Productive population needed to serve one elderly (more than 65years old) 1996 2006 2060 2 nd Aspect > Government’s Expenditure↑

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

20 2) Financial Industry : CountriesSouth KoreaU.S.JapanU.K.Australia Cash/Savings account 45.512.753.127.822 Financial Investment Goods 2553.316.112.517.2 Insurance/Pension28.931.326.756.357.7 Others0.72.74.13.43.1 * 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

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

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

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

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

25 Performance-based System

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

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

28 Case : Canon

29 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

30 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 ?

31 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?

32 ※ 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

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

34 1. Infant allowance & Child allowance

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

36 3 rd solution> Evaluation of the Angel Plan Infant allowance Maternity (Child Care) Leave Child allowance

37 3 rd solution> Evaluation of the Angel Plan Infant allowance Maternity (Child Care) Leave Child allowance

38 3 rd solution> Government Policy Tax-exem pt child care supplies Create childca re environme nt Support from the government

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

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

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

42 THANK YOU ^^