South Korea's Coming Economic Collapse

Developed country's across the world are suffering from rapidly aging populations. The country which is currently most at risk is South Korea. In this video we'll go over why an aging population poses a severe risk to an economy and what will be the future implications.

#WallStreetMillenial

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[mdphotography]

“Retired people produce NOTHING.”

Hear that nana?

[albeit]

If a pension system uses the earnings of the young to pay benefits to the old, it is a potential generational time bomb.

But if each participant pays into and draws on their own account, it isn’t.

[tedang]

"Samsung's Patriarch is being keep alive to prevent economic collapse."
Korean Writer: This sounds like a TV series.
* writes "Kingdom" *

"Korean household debt is skyrocketing!"
Korean Writer: This sounds like a TV series.
* writes "Squid Game" *

"Korea is facing a population implosion!"
Korean Writer: This sounds like a TV series.

[FKS]

this just means squid game is going to turn into a reality

[SofaKing_Kong]

Dude this topic is really freakn important and I already enjoyed your first video about it. Please let the updates coming!👍🙏

[alexturlais]

Youre ignoring the impact of productivity growth and automation. If a factory can produce the same number of microchips it did last year but with fewer workers, that means you can handle a smaller labour force without a drop in living standards.

[Nuxnuxnux]

Most recent fertility rate is at 0.84, so its getting even worse. Combined with a weak Korean currency, extreme household debt and external debt, Korea's future is not looking bright. Also, less know but very important, Korean banks and majors companies are owned by foreign investments so all the profit goes to foreigners...

[BillCarrIpswich]

Old people's wealth isn't even in cash, as it may have been pre-GFC (when interest rates were higher) - it's in assets like shares and property, both of which must be sold in offer for the old person to buy an annuity. If there is no-one to buy those assets, they may not realise the value they had hoped when selling.

[BillCarrIpswich]

Another thing to consider is how people of different ages choose to invest their pension funds. Younger people will invest more aggressively, since the compounded rewards are greater and there is ample time to make up for falls from fluctuations in the market. Those who are approaching retirement may not be able to bear a fall near the time the find is cashed in, so choose much safer/lower yield strategies. What will be interesting is how an aging population will affect the funds as a whole, as the balance of different strategies changes.

[tradeprosper]

With a retirement age in the mid 60s, you are retired only about 1/2 the time you work. This means that a stable population would result in a 2:1 ratio. 4:1 is only double, not four times the benefit.

[Mellowbaton]

Came for the funny investing memes, stayed for the deep socioeconomic analyses of nations and their future

[niceengine]

"Nothing the government can do"


* Cough cough* "Genocide" *Cough cough*
*Wink*

[uraoshi]

In my country a mother is allowed a paid stay at home with her new baby for two to three years. The state allowance is 85% of her last salary but never less than half of the minimum salary. This stopped somehow the demographic decline.

[rdhtom]

I'm a Korean.
As time goes on, I feel more and more about the structural problems of the territories that have changed dramatically since the Korean War, such as politics, economy, culture, the absence of underground resources, and the concentration of the entire economy in Seoul.
Due to the limit of the population of 50 million, the domestic market is not developed and there are not enough jobs for young people.
Basically, South Korea is a country heavily dependent on exports and is geographically very poor, surrounded by China, North Korea and Japan. There are many first-class companies such as Samsung, LG, Hyundai, and Doosan Heavy Industries & Construction, but among them, if Samsung goes bankrupt, it will follow the same steps as Finland.
The advanced technology is quite high, but the basic technology is very lacking.
There are political problems. Very unstable and busy fighting each other.
For a country to develop, it has to make concessions and make efforts, but politicians are busy filling their stomachs.
Trade unions also face serious problems. Their political influence is so great that even the government cannot easily touch them, and if they do not like the policies of the government or corporations, they go on strike.
Since most of the GPD comes from large corporations, it is quite troublesome if workers go on strike.

[woolack]

Birthrate 2020 was 0.84 and 2021 is projected below 0.8 in South Korea.

Biggest reason in Korea for low birthrate is it is too expensive to buy a house, it is kind of a tradition for a man to buy a house for wedding. And the prices of houses is so darn expensive it takes far longer to be able to buy a house and getting married. And koreans and Asians in general don't get children without first getting married. So You get married far older age, thus it is physically harder to give birth and even if they get child only one per couple. People gave up on getting married and live yolo and solo get pet's instead of a child.

Second biggest reason have to be education and private tutoring is expensive and everyone is doing it however eventhough with all these efforts you cannot get good job or every company wants experienced workers and not hiring newcomers or paying abysmal salaries. Millenial generation is first generation where we are expected to be poorer than our parents.

[morrirowan]

Think you're forgetting about AI replacing many jobs that humans used to do

[changhahn]

Your analysis of equilibrium is flawed. You assume a person consumes equal to what they produces which is not true. Technology is a multiplier so less people can make more. Economies have many multipliers. If production goes down exports will probably drop.

[fx]

Older people are also healthier as compared to 50 years ago. It would only make sense if the retirement age were to increase. They may not be doing the same job but there is other work in the same field that they can do such as supervising managing or training.

[prestonhanson]

Can't afford daycare can't have kids

[briannewman]

Inflation will destroy the savings of retired people which will mean that there will be even more people requiring social security support.