{"id":2206219,"date":"2024-08-20T17:52:38","date_gmt":"2024-08-20T08:52:38","guid":{"rendered":"https:\/\/koreapro.org\/?p=2206219"},"modified":"2024-08-21T16:30:45","modified_gmt":"2024-08-21T07:30:45","slug":"aging-workforce-threatens-to-dull-south-korean-conglomerates-competitive-edge","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/08\/aging-workforce-threatens-to-dull-south-korean-conglomerates-competitive-edge\/","title":{"rendered":"Aging workforce threatens to dull South Korean conglomerates\u2019 competitive edge"},"content":{"rendered":"
Employees at South Korea\u2019s top conglomerates are aging at an alarming rate, according to a <\/span>report<\/span><\/a> from Leaders Index, a research institute that focuses on corporate analysis. Over the past two years, the number of employees under 30 has fallen by nearly 5%, while those over 50 have surged by almost 10%.<\/span><\/p>\n This demographic shift poses a serious threat to South Korea\u2019s chaebol \u2014 large family-owned conglomerates that include Samsung, Hyundai, LG and SK Group. As the pool of young workers shrinks, these companies risk losing the innovation and agility needed to maintain their competitive edge in a rapidly evolving global market.<\/span><\/p>\n Meanwhile, the growing number of older employees is driving up costs \u2014 salaries, pensions and health care \u2014 putting strain on financial resources. If unchecked, this trend could destabilize the foundations of South Korea\u2019s economic powerhouses.<\/span><\/p>\n SHIFTING DEMOGRAPHICS AND HIRING PRACTICES<\/b><\/p>\n South Korea\u2019s birth rate has been on the decline for decades, falling to <\/span>0.72<\/span><\/a> in 2023 and becoming one of the lowest in the world. At the same time, South Korea\u2019s life expectancy is <\/span>83.64 years<\/span><\/a>, a 0.16% increase from 2023. As a result, about <\/span>60%<\/span><\/a> of the country\u2019s senior citizens are either employed or actively seeking employment.<\/span><\/p>\n These demographic trends are having a significant impact on the workforce, particularly within the country\u2019s largest conglomerates.<\/span><\/p>\n According to the Leaders Index report, the number of employees under 30 in South Korea\u2019s top 500 companies decreased by 4.9% between 2021 and 2023. During the same period, the proportion of employees over 50 surged by 9.7%.<\/span><\/p>\n This shift is most evident in industries like information technology (IT), electronics and finance, where young talent has traditionally played a critical role in driving innovation. The report highlights that sectors such as IT and electronics saw the proportion of employees under 30 drop from 34.2% to 28.9%, while those over 50 increased from 16.6% to 19.8%.<\/span><\/p>\n