{"id":2205659,"date":"2024-07-03T13:39:05","date_gmt":"2024-07-03T04:39:05","guid":{"rendered":"https:\/\/koreapro.org\/?p=2205659"},"modified":"2024-07-04T13:29:33","modified_gmt":"2024-07-04T04:29:33","slug":"south-korea-braces-for-economic-fallout-as-new-wave-of-baby-boomers-retires","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/07\/south-korea-braces-for-economic-fallout-as-new-wave-of-baby-boomers-retires\/","title":{"rendered":"South Korea braces for economic fallout as new wave of baby boomers retires"},"content":{"rendered":"
The looming retirement of a new wave of baby boomers could threaten South Korea\u2019s economic growth and domestic demand, according to a new <\/span>study<\/span><\/a> released by the Bank of Korea (BOK), potentially leading to a further decline in the country\u2019s growth potential.<\/span><\/p>\n Second-generation baby boomers, which the study defines as those born between 1964 and 1974, are the largest single generation in South Korea, comprising 9.54 million people or 18.6% of the total population. As they reach the legal <\/span>retirement age of 60<\/span><\/a> over the next 11 years, their exit from the labor market is expected to have significant consequences for the economy.<\/span><\/p>\n In comparison, first-generation baby boomers, born between 1955 and 1963, comprise 7.05 million people, or 13.7% of the population.<\/span><\/p>\n According to the BOK study released Monday, the retirement of first-generation baby boomers lowered the country\u2019s annual economic growth rate by 0.33 percentage points from 2015 to 2023. With the second generation even larger, the potential risks to economic growth are more pronounced.<\/span><\/p>\n The study presents three scenarios for the projected impact on the annual economic growth rate from 2024 to 2034:<\/span><\/p>\n The study also identifies mitigating factors that could help counteract the negative economic impact, such as the second-generation baby boomers\u2019 strong willingness to continue working after retirement, relatively high human capital and significant consumption capacity.<\/span><\/p>\n\n