Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
Assets held by people with dementia take up 6.4% of Korea's GDP
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By Lee Yeon-woo
Finding raises alarm over possible financial fraud, sparks call for better safeguards
Assets held by people aged 65 or older with dementia are estimated to have reached 154 trillion won ($111.1 billion), representing 6.4 percent of Korea's gross domestic product (GDP), government data showed Tuesday.
According to a study conducted by the Presidential Committee on Aging Society and Population Policy, Korea had approximately 1.24 million people aged 65 and older having dementia. Among them, an estimated 760,000 individuals, or 61 percent, owned assets.
The combined value of their income and property totaled 154 trillion won, averaging about 200 million won per person. These assets accounted for 6.4 percent of the nation's GDP.
Considering that older people who have dementia make up just 2.4 percent of the total population, their share of the nation's wealth is disproportionately high, the research team noted.
"Older (people with dementia) are vulnerable to unauthorized use of their assets or fraud by family members and third parties," Joo Hyung-hwan, vice chair of the presidential committee, said. "Additionally, if people with dementia's assets remain frozen, it could disrupt the economic cycle of investment and consumption."
The value of assets people with dementia hold is projected to rise further, as the country has the fastest population aging in the world.
The number of people with dementia is expected to reach 1.79 million by 2030, 2.85 million by 2040 and 3.97 million by 2050.
In line with this trend, the total value of their assets is projected to reach 488 trillion won by 2050. This figure is nearly triple the current amount, accounting for 15.6 percent of the nation's projected GDP that year, according to the committee.
The study, conducted in collaboration with the National Health Insurance Service and Seoul National University's Health and Finance Research Center, represents the government’s first initiative to address the issue. It has already become a significant social concern in countries like Japan.
The committee said it plans to conduct further research and develop comprehensive measures to address the problem, with a full report expected by the end of the year.