Analysis South Korea faces dementia crisis as aging population strains care systemFocus on AI and early diagnosis reflects innovation but leaves social and financial costs of dementia care unaddressed Jeongmin KimMarch 13, 2025 An illustration of an elderly patient looking out a window | Image: Korea Pro South Korea’s growing dementia crisis exposes the country’s fragmented and inadequate care infrastructure, leaving families to shoulder the financial and emotional burden of long-term care. Despite technological advances in early diagnosis and treatment, the country’s support system for dementia patients remains underdeveloped compared to international standards. The government projects that the number of dementia patients will exceed one million by 2026 and reach 2.34 million by 2059, according to a comprehensive 2023 epidemiological study by the Ministry of Health and Welfare published Wednesday. This figure poses a serious challenge to the national healthcare system and social stability. Without a more integrated and sustainable care model, South Korea faces mounting economic and social strain as its population continues to age. INADEQUATE CARE INFRASTRUCTURE South Korea’s current dementia care system excels at early detection but fails to provide sustainable long-term care for patients and their families. The health ministry’s study reported that dementia prevalence among adults over 65 had decreased slightly from 9.50% to 9.25%. However, this statistical improvement masks deeper structural weaknesses in South Korea’s dementia care ecosystem. The government plans to draft a new Comprehensive Dementia Management Plan (2026–2030) focused on technological investment in artificial intelligence (AI) for early diagnosis, prevention and treatment. However, South Korea’s strategy remains heavily weighted toward medical solutions, with limited focus on social integration or long-term care. This contrasts with the more balanced approaches seen in countries like Norway and Japan, where dementia care combines medical treatment with robust social support networks. The absence of a holistic care infrastructure forces families to fill the gap. With limited access to affordable long-term care options, many face difficult choices between providing care at home or turning to expensive institutional facilities. Moreover, South Korea’s over-reliance on family-based care reflects outdated social expectations that are increasingly incompatible with the country’s evolving demographic realities. Left: An illustration of an elderly patient at a care facility; Right: An illustration of an elderly patient at home | Image: Korea Pro FINANCIAL BURDEN ON FAMILIES South Korea’s dementia care system places a disproportionate financial burden on families. The health ministry’s study found that annual out-of-pocket costs for home-based care average $12,000 (17.3 million won), while institutional care costs can reach $21,660 (31.4 million won). These expenses often exceed the financial capacity of middle-income households, forcing many families to make career sacrifices or seek alternative arrangements. The economic burden is compounded by the country’s lack of a comprehensive public insurance scheme for long-term dementia care. In contrast, Japan, which has faced similar demographic challenges a decade earlier than South Korea, instituted its Long-Term Care Insurance program to cover both home and institutional care, easing financial pressure on families. Similarly, Norway’s state-subsidized model provides extensive financial and social support to dementia patients and their caregivers. In contrast, South Korea’s public funding for dementia care remains limited to around 250 state-funded dementia care centers focused on early detection, not long-term support. This financial strain creates long-term economic risks for South Korea. As the population ages and dementia cases increase, the rising cost of care threatens to undermine the country’s healthcare budget and broader economic stability. The current family-based model is unsustainable in the face of rapidly shifting demographic and labor market dynamics. SOCIAL ISOLATION AND HEALTH IMPACTS Social isolation is both a cause and consequence of South Korea’s dementia crisis. The health ministry’s data shows that 52.6% of dementia patients in the country live alone, a significantly higher proportion than in other developed countries. In the U.K. and the U.S., about one-third of dementia patients live alone. Living alone increases the risk of cognitive decline and accelerates the need for institutional care. Patients without regular social interaction are more prone to depression and deteriorating health, raising care costs and reducing life expectancy. The data reflects significant disparities based on gender and location: dementia prevalence among women rises sharply after age 75, reaching 28% by age 85 compared to 11% for men. Similarly, rural residents face almost double the dementia prevalence rates compared to urban areas, exacerbating social isolation and access to care challenges. South Korea’s care model contrasts sharply with the community-based approaches adopted in Japan and Scandinavia. Japan’s “Dementia-Friendly Towns” and Norway’s “Carpe Diem Dementia Village” integrate patients into everyday social settings, reducing isolation and improving health outcomes. South Korea’s dementia care centers, by contrast, focus primarily on early diagnosis and medical treatment, with little emphasis on creating supportive social environments. Without addressing social isolation, South Korea’s technical advances in dementia treatment will deliver diminishing returns. Further, the cycle of isolation and deteriorating health outcomes will continue as South Korea’s traditional multi-generational household model continues to decline. An illustration of a person overwhelmed by bills with an elderly family member nearby | Image: Korea Pro PERSISTENT SOCIAL STIGMA Social stigma surrounding dementia remains a major barrier to effective care in South Korea. Despite increased public awareness, dementia continues to be perceived as a source of financial burden and family shame rather than a public health issue. A 2023 survey by the National Dementia Institute found that while 72% of South Koreans claim to have a good understanding of dementia, 64% admitted that they are “afraid” of dementia patients, and a significant percentage expressed reluctance to live near them or have them in their families. This stigma influences both policy and community behavior. Proposals for new dementia care facilities in urban areas often face fierce opposition due to “Not In My Backyard” sentiments. Local governments have attempted to rebrand such facilities as “happiness centers” to reduce opposition, but resistance remains strong. Concerns over property values and negative community perceptions have delayed or canceled projects in districts like Songpa, Dongdaemun and Mapo in recent years. The gap between awareness and acceptance is reinforced by South Korean media, which often frames dementia as a family burden rather than a social issue. The survey found that 64% of South Koreans receive information about dementia primarily from TV and internet news, which often frame dementia through the lens of helplessness. In contrast, public health campaigns in the U.K. and Japan have normalized dementia care by focusing on “living well with dementia” and integrating dementia education into school curricula. South Korea’s reluctance to challenge deep-seated social attitudes toward dementia perpetuates the cycle of isolation and inadequate care. INTERNATIONAL BENCHMARKS AND POLICY GAPS South Korea’s dementia care challenges are not unique, but its policy responses lag behind those of comparable nations. Japan’s Long-Term Care Insurance program provides a clear model for financing dementia care through public funding, reducing the burden on families. Norway’s approach combines state-subsidized care with strong community-based support networks. Australia’s 2024-2034 National Dementia Action Plan emphasizes early intervention and risk reduction, aiming to reduce long-term care costs by delaying disease onset and progression. South Korea’s current policy framework, focused on AI and technological innovation, reflects the country’s broader tendency to prioritize technical solutions over social integration. While early diagnosis and treatment are critical, they do little to address the long-term financial and emotional burden on families or the isolation experienced by patients. The planned 2026-2030 Comprehensive Dementia Management Plan presents an opportunity to recalibrate South Korea’s approach. Integrating financial support with community-based care models would reduce both economic strain and social isolation, aligning South Korea’s system more closely with successful international models. An illustration of a dementia-friendly community | Image: Korea Pro LOOKING AHEAD South Korea’s rapidly aging population will accelerate the demand for dementia care over the next two decades. Without a shift toward integrated care models and broader public funding, the financial and social costs of dementia care will continue to rise. The country’s reliance on family-based care is becoming increasingly unsustainable, and the social isolation of dementia patients will worsen health outcomes and drive up care costs. South Korea’s focus on AI and early diagnosis reflects its strength in medical innovation but leaves the social and financial dimensions of dementia care unaddressed. Without adopting a more holistic approach, South Korea’s dementia crisis will deepen, placing mounting pressure on families, healthcare providers and the national budget. Edited by John Lee South Korea’s growing dementia crisis exposes the country’s fragmented and inadequate care infrastructure, leaving families to shoulder the financial and emotional burden of long-term care. Despite technological advances in early diagnosis and treatment, the country’s support system for dementia patients remains underdeveloped compared to international standards. Get your
|
Analysis South Korea faces dementia crisis as aging population strains care systemFocus on AI and early diagnosis reflects innovation but leaves social and financial costs of dementia care unaddressed South Korea’s growing dementia crisis exposes the country’s fragmented and inadequate care infrastructure, leaving families to shoulder the financial and emotional burden of long-term care. Despite technological advances in early diagnosis and treatment, the country’s support system for dementia patients remains underdeveloped compared to international standards. © Korea Risk Group. All rights reserved. |