The real significance of South Korea’s successful 2025 Asia-Pacific Economic Cooperation (APEC) summit lies in the Lee administration’s decision to make demographics a major part of its policy agenda.
The aging population will reduce productive capacity faster than capital accumulation and pronatalist policies can compensate.
Although many advanced states face demographic challenges, it is especially acute for the Korea and its military.
Korea needs to utilize its strengths to strengthen lagging sectors and reduce the polarization in the Korean economy.
Korea stands at a critical demographic juncture, facing a declining birthrate that has far-reaching implications for its economy and society.
Meeting Korea’s demographic challenge requires a comprehensive strategy, including by making greater use of foreign workers.
Raising the fertility rate in Korea depends in part on improving the young’s economic position, which requires fundamental economic reforms.
Korea has identified balancing work and childcare as a key to reversing the decline in the fertility rate.
Korea’s low birthrate, combined with rising life expectancy, will sharply increase Korea’s dependency ratio and likely pose serious socio-economic issues.
Benchmarking the example set by Sweden, bringing more women into the workforce may be the solution to reversing the fertility rate decline in South Korea.