Asia-Pacific

ROK to become most aged nation in 2050: report

(Xinhua)
Updated: 2011-03-28 17:06

SEOUL - The Republic of Korea is likely to become the most aged nation in the world in 2050, a state-run think tank said Monday.

The percentage of South Korean aged more than 65 among total population is projected to reach 38.2 percent in 2050 due to rising average lifespan and falling birthrate, the Korea Institute of Finance (KIF) said in a report.

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The period during which ROK falls into aged society from aging society is expected to take only 26 years, compared with 154 years for France, 94 years for the United States, 77 years for Germany and 36 years for Japan, according to the report.

The report warned that the rapid aging could damage the country 's growth potential and weigh on fiscal health, but it could become an opportunity for local financial companies as demand for stable financial products is likely to rise.

The KIF advised local financial firms to expand services for comprehensive and customized asset management, revitalize mortgage loan market and nurture healthcare-related insurance.

In addition, the government should reduce public pension schemes and raise private pension system in a bid to brace for the shortages of fiscal sources, the KIF said.