The share of social welfare spending in Korea's total GDP is expected to double in 20 years from now even without improving the current welfare levels. By 2060, the nation is likely to become one of the world's most aging countries, with the welfare spending ratio tripling from the present level.
According to a long-term projection announced by the state-run Korea Institute for Health & Social Affairs on February 8, the ratio of social welfare expenditure to the GDP will increase to 18.3 percent by 2035 from 10.4 percent in 2014. This trend is forecast to accelerate to 25.6 percent in 2050 and 27.8 percent in 2060 as the society's population ages with low birth rates.
Korea's current social welfare spending level is ranked at the bottom among Organization for Economic Cooperation and Development member countries together with Mexico.
But experts warned that the nation's welfare spending is rising too fast. The ratio was mere 2.8 percent in 1990. But it rose to 4.8 percent in 2000 and 9.0 percent in 2010. The average social welfare spending growth rate for OECD countries for 20 years between 1990 and 2009 was 5.38 percent while that for Korea was as high as 15.96 percent.
Source: The Korea Economic Daily
