The Influence of South Korea’s Demographic Crisis on the Sustainability of Human Resources in Competition within the East Asian Region

Abstract

This study critically examines South Korea's demographic crisis, a phenomenon defined by a profoundly low birth rate and a rapidly escalating elderly population. Such a demographic shift not only restructures the national population but also severely compromises the country's economic potential and regional competitiveness within East Asia. The primary objective of this research is to analyze how these demographic changes impact the long-term sustainability of South Korea's labor force. Methodologically, the research adopts a qualitative approach, employing systematic document analysis of diverse secondary sources, including academic literature, official government reports, and international publications. A comparative framework, utilizing Japan's earlier experience, is additionally employed to delineate relevant policy alternatives. The findings reveal that the contraction of the productive working-age population precipitates an economic growth deceleration and a critical reduction in labor supply. This adverse effect is particularly pronounced in the industrial sector, especially manufacturing, which faces operational downturns and labor shortages, consequently driving the offshore relocation of production facilities. Concurrently, the burgeoning old-age dependency ratio imposes substantial fiscal pressure, thereby constraining the government's capacity for strategic investment. Consequently, the successful mitigation of this profound demographic challenge necessitates the implementation of adaptive and sustainable policy measures.