South Korea’s welfare spending will rise steadily over the next few years due to the growing senior population. Furthermore, the government expects total welfare expenditures to reach 237 trillion won by 2029. In addition, annual spending will increase at an average rate of 6.8 percent each year, marking a total rise of more than 30 percent.
The country has officially become a superaged society, with more than 20 percent of its population aged 65 or older. Therefore, the government has adjusted its welfare budget estimates upward for upcoming years. Moreover, pension-related expenditures will account for a growing share, surpassing 100 trillion won annually for the first time.
Currently, pension costs stand at 85.4 trillion won, but they will rise to 102.8 trillion won in the near future. By 2029, the amount is expected to reach 118 trillion won. At the same time, the number of National Pension recipients will grow from 7.83 million to 9.57 million. Consequently, the government plans to allocate more resources to sustain the expanding program.
The report also projects that statutory welfare expenditures will rise each year, beginning from 181.8 trillion won. Additionally, the budget for 2027 and 2028 will be higher than previously planned, reflecting demographic changes. This increase will ensure that the welfare system meets the needs of a rapidly aging population.
Officials note that rising welfare spending is essential to support seniors, including pensions, healthcare, and social services. In addition, the government emphasizes the need to plan carefully for sustainable funding. Analysts expect that the growth in welfare spending will continue to put pressure on public finances but also provide crucial support to millions of older citizens.
In conclusion, South Korea’s welfare spending will continue to grow as the country faces demographic challenges. Therefore, careful planning and fiscal management are critical to maintain the sustainability of social programs. Furthermore, policymakers highlight the importance of balancing fiscal responsibility with providing adequate support for the elderly.
