Seoul: The head of South Korea's central bank on Tuesday emphasized the necessity for the nation to leverage innovation and artificial intelligence (AI) to transform the challenges of an aging population into new growth opportunities, in alignment with the expanding "silver economy."
According to Yonhap News Agency, Bank of Korea (BOK) Governor Rhee Chang-yong delivered these remarks during a forum co-hosted by the central bank and Yonsei University, focusing on industrial responses to a super-aged society. Rhee acknowledged the demographic shift as a crisis but also identified it as a structural change that generates new demand.
South Korea reached the status of a super-aged society last year, with over 20 percent of its population aged 65 or older. Rhee argued that the silver economy should transcend welfare and be recognized as a vital industrial sector capable of creating added value through innovation and technology. He urged for a more significant role for the private sector to address the increasing demand.
Projections indicate that the number of elderly individuals needing intensive care and end-of-life preparation will more than double from 292,000 in 2025 to 639,000 in 2050. Consequently, the demand for "well-dying" and "well-aging" services is rising swiftly, Rhee noted.
To convert demographic challenges into industrial opportunities, Rhee highlighted the importance of greater utilization of healthcare data and reforms to infrastructure-related regulations to optimize AI usage. He also suggested relaxing legal and administrative restrictions to boost the supply of nursing care facilities and crematoriums in urban areas.