Demographic Dividend Case Study: South Korea

Demographic dividend: Accelerated economic growth that may result from a decline in a country's birth
and death rates and the subsequent change in the age structure of the population, where a large
proportion of the population is in the adult age range.

In the 1950s, South Korea had a population of 20.1 million people and a median age of 19 years. In the
2020s, South Korea’s population is 51.78 million and currently has a median age of 43.7 years.

Causes:

- The South Korean government invested in health centers to provide a range of services,
including family planning. The government set a target of 45% of married couples using family
planning. Between 1959 and 1975, fertility rates dropped from 5.4
- Due to the family planning campaigns in 1962, the total fertility rates decreased from 6.3 to 2.2
to 1.2 in 2005.
- The life expectancy increased from 53 years in 1960 to 79 years in 2005.
- In the 1950s, in the 1950s, South Korea’s economy, which was largely bases on farming and
fishing, was weak. Improved relations with Japan led to investment capital that strengthened
agricultural, fishing and manufacturing industries, including shipping.

Benefits:

- Labor force participation of women of childbearing age (20-29) had increased from 45% in 198-
to almost 65% in 2004.
- The GDP per capita in South Korea increased from approximately $100 in 1960 to almost $30000
today, exponentially improving the standards of living in the country.

Costs:

- 6.4 million South Koreans, or 12.7% of the total population were aged 65 or above in 2014.
- From 1995 to 2013, the World Bank data shows that healthcare expenditure in South Korea rose
from 3.8% to 7.2% of the GDP. As the population ages, healthcare expenditure is bound to rise
further, straining public finances.

Map of South Korea:

GDP per capita from 1980 to 2030:

GNI per capita from 1953 to 2014:

GDP of South Korea in 1960 and 2021: