South Korea is a success story, it has transformed itself from a low-income nation to a higher-income one. Today it has the 10th largest economy in the world, the standard of living has skyrocketed and the country has become a case study for others.
But like everything, there are two sides to development too. South Korea is paying a speedy price for its speedy growth and that is the elderly population. More than 18% of South Korea's population is above 65 and this number is only going to rise.
It is projected that by the next 12 years, 30% of the population will be in the elderly category. Having an old age population can turn detrimental for any country.
Even if we keep these societal aspects aside, Seoul is proof that the issue can even turn political. For 40 years South Koreans aged 65 and above have been enjoying free subway rides.
The government aimed to keep the people active and independent which the free pass did, but what does this means for a country where 9 million people are old?
In the greater Seoul area, almost 3.7 million people are 65 or older. Here 233 million people took free rides last year. You can understand what it does to the operating costs. So expectedly this has become a thorny political issue.
The opposition is demanding an answer but for president, Yoon Suk Yeol this is just not a budget issue, it is also a political one. Elderly voters are a key support base for the ruling party.
There is no talk of doing away with the benefit altogether but some cities have been forced to come up with some kind of solution. Like increasing the eligible age, steep fare hikes, and restructuring finances.
The dispute is part of a broader challenge. The cost of senior welfare is surging in South Korea and there is already a debate on the raising of retirement age from 60 because the sustainable national pension scheme is becoming increasingly difficult.
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