Demographic Dividend of South Korea
4 Areas |
Benefits to South Korea |
Labour Supply |
Reduction in TFR of 6.3 to 2.2 and increased life expectancy from 53 to 79 contributed to a large and young workforce
Improvements in education, women were able to remain in careers, thereby boosting the economy but also personal wealth
|
Savings |
Young and older dependents consume more resources than they produce. By reducing the dependency ratio, the working age population were able to save and coupled with better health and longer life, South Koreans are able to reach middle-age with higher savings and better pension prospects |
Human Capital |
South Korea overhauled its education system to be more equal and this led to one of the most educated population in the world. 69.8% of South Koreans aged 25 to 34 years have completed some form of tertiary education. 34.2% of South Koreans aged 25 to 64 have a bachelor's degree. This has contributed to rapid economic development through a skilled workforce |
Economic Growth |
Changes to population size and age structure has contributed to economic growth and allowed South Korea to become an export orientated economy (exports provide over 50% of GDP). Rapid industrialisation has resulted in urban growth and improved infrastructure across the country, making South Korea one of the fastest growing economies with an average 4% GDP growth per year |