Population Down↓ Loneliness Up↑... A New Disaster 'Elderly Solitude' Is Coming

UK FT Warns of 'Elderly Loneliness' Issue
"Han-Jung-Il Vulnerable to Elderly Depression"

All of Asia's representative aging countries?Korea, China, and Japan?entered a 'population decline' phase as of last year. This is because the birth rate of newborns has plummeted while the number of deaths has increased.

However, a warning has emerged that the crisis of a super-aged society is not only about the population cliff. It is pointed out that the loneliness experienced by the elderly and the resulting overall social stagnation could also emerge as new problems.

The Issue of 'Elderly Living Alone' Casts a Shadow on Society and Economy

Elderly people resting at Tapgol Park in Jongno-gu, Seoul / Photo by Yonhap News

Leo Lewis, Asia Business Editor of the UK financial media 'Financial Times,' wrote in a column published on the 16th (local time), "The population cliff of the country with the world's largest population (China) is imminent or nearly reached," and added, "However, the rapid increase in 'loneliness' is expected to become a new emergency just as much as population decline."

According to Lewis, Asian countries that experienced rapid aging before China, such as Korea and Japan, are also suffering from loneliness issues. Overall, the number of households where people live alone due to not marrying or divorcing has increased, leading to loneliness and depression among the elderly becoming serious social problems. China is already showing signs of transforming into such a society.

A society with depression places a considerable burden on the private economy and companies. As companies need to significantly increase welfare and insurance expenditures per employee to physically and mentally support elderly workers, Lewis claims, "(The welfare issue for elderly employees) has already become a key concern for companies in Beijing."

Moreover, a 'lonely society' raises concerns about the overall economic slowdown. This is because depressed people tend to reduce external activities, which can decrease private consumption.

In this regard, Lewis cited John Maynard Keynes, a representative British economist, and his concept of 'animal spirits' (the phenomenon where optimism about the future boosts the population's willingness to consume and invest), pointing out that "markets and economies also depend on such psychological factors."

13.5% of Elderly Complain of Depressive Symptoms... Japan Appoints 'Minister of Loneliness'

An elderly person walking alone in Tokyo / Photo by Yonhap News

Loneliness has already emerged as a serious social problem domestically. According to the 2020 National Elderly Survey conducted by the Korea Institute for Health and Social Affairs, 13.5% of the domestic population aged 65 and over reported depressive symptoms. In particular, 24% of those aged 85 and over showed depressive symptoms, about three times higher than the 65-74 age group.

In Korea and Japan, the so-called 'kodokushi'?where isolated elderly people die unnoticed by neighbors and are discovered months later?is also becoming serious. According to the Ministry of Health and Welfare, the number of kodokushi deaths in Korea is 3,378, steadily increasing over the past five years. Japan appointed the 'Minister for Loneliness and Isolation' in February 2021, the first in Asia, demonstrating the government's determination to solve the problem of isolated elderly people.

However, a 'lonely society' may also present new investment opportunities. Lewis said, "Some fund managers analyze that Asia's 'loneliness economy' could expand," and predicted, "Video games, streaming services, and in the future, virtual reality (VR) could emerge as new investment portfolios."

He added, "Another growth area is pets," explaining, "It is not just about raising pets to alleviate loneliness but about welcoming animals as true companions. Accordingly, markets related to pet food, insurance, and clothing could expand."