Aging populations in Asia-Pacific drive economic and healthcare concerns

The Asia-Pacific region is facing significant demographic shifts as people aged 65 and older now comprise 15 percent of the population, more than doubling their share since 1990. At a recent APEC Health Working Group meeting, policymakers emphasized that healthy aging is a critical driver of economic stability and warned that declining birth rates could lead to unsustainable public debt as healthcare costs rise and the labor force shrinks.

In South Korea, which has officially become a ‘super-aged’ society with over 20 percent of its population aged 65 or older, the challenges are particularly acute. Projections from the Ministry of Health and Welfare indicate that the dementia rate among South Koreans aged 65 and older is expected to reach 10.34 percent by 2030 and 11.81 percent by 2050.

This trend is driving a massive increase in medical expenditures. In South Korea, dementia-related spending for those aged 40 and older reached 3.37 trillion won in 2023. Experts note that women and those aged 80 and older will bear a disproportionate share of these medical costs as life expectancy continues to rise.