SEOUL, KOREA - A study said Korea's demographic competitiveness would plunge to the 21st place among 29 Organization for Economic Cooperation and Development member countries by 2030 as the trend of low birthrate and rapid aging continues. The Korea Institute for Industrial Economics & Trade said this in a report "International Comparison of Demographic Competitiveness and Policy Implications" published on July 11.

 

According to the report, Korea will suffer a setback in terms both of the economic vitality competitiveness index and the social vitality competitiveness index to fall to the 23rd and 21st by 2030. The rankings for the two indexes in 2010 were 14th and 17th, respectively. This is largely because of the worsening of the job market conditions and welfare environment due to the aging trend and a fall in new hire numbers.

 

As for Japan, its demographic competitiveness ranking would fall to 20th from the current 18th place. By 2030, the country with the best demographic competitiveness would be Israel from today's third place, overtaking the United States.

 

Huh Moon-Goo, research fellow with the Korea Institute for Industrial Economics & Trade, said, "In the case of Korea, the negative impact of aging will appear in the economic area and then spread to the social arena. Government-level policy response must be in order to halt the trend toward aging and population bust.