If This Continues, Even the Nation Will Shake... Economic Losses Exceed 11 Trillion Won [Youth Isolation 24 Hours]

<4>Reasons for Isolation and Social Costs
②Estimated Economic Losses Exceeding 11 Trillion Won
Youth Isolation Spreading as a Societal Issue
Increases Incidence of Diabetes and Medical Service Usage
Social Relationship Breakdowns from Isolation May Also Cause Low Birth Rates

Editor's NoteWhen eating alone after work, having hundreds of contacts saved on your phone but no one to confide in when you're going through tough times, or when you're sick or broke but can't ask for help... The young people in their 20s and 30s whom Asia Economy met confessed feeling isolated in such moments. Could this be your story? If you have thought that words like 'hikikomori' or 'eundunhyeong oeltori' (reclusive individuals) are stories from a different world, now is the time to properly reconsider isolation and seclusion.

"People who ask why we should help isolated youth think isolation is voluntary. Isolated youth who lack social networks and have no one to help them in difficult situations are highly likely to become a crisis group. The government says there is a shortage of workers due to low birth rates, but we must also help the youth who have already been born to grow up healthy and be able to work." - Choi Young-jun, Professor of Public Administration, Yonsei University

Experts view the isolation and seclusion crisis among young people in their 20s and 30s as likely to extend beyond individuals and become a social problem. The suffering of 540,000 isolated and reclusive youth directly impacts over one million people including their families, causing economic and social losses to the companies and society they belong to. This is why active support measures must be prepared to improve the situation of vulnerable youth and prevent the issue of youth isolation and seclusion from expanding further as a social issue.

Most of the old gosiwons in Sillim-dong, Seoul have been rebuilt as studio apartment buildings, filling the streets densely. Photo by Heo Young-han

Increasingly Diverse Social Problems Including Productivity Decline

The isolated and reclusive youth Asia Economy met and the field experts supporting them said, "If even one family member is isolated, the entire family collapses." If the government estimates 540,000 isolated and reclusive youth, it means that over one million people including their families are suffering from the youth isolation and seclusion problem. The scale is growing, and if it is dismissed as a personal problem and neglected, concerns are rising that it will lead to various social problems.

Especially, the isolation and seclusion problem among the youth, who are the driving force of society's growth, has a large ripple effect on society. Isolated and reclusive youth tend to reduce or cut off external activities and are likely to be without jobs, making them likely candidates for social security systems. According to research by the Youth Foundation on isolated youth, households with isolated youth are about 2.44 times and 2.15 times more likely to receive livelihood benefits and unemployment benefits respectively compared to non-isolated youth households.

There is also research showing that isolated youth who are employed tend to have lower performance or difficulties in collaboration at work. Isolation increases the likelihood of absenteeism and job turnover, which can reduce job performance. The American insurance company Cigna analyzed in its report "The Impact of Loneliness on the U.S. Workplace" that "lonely workers have lower productivity than non-lonely workers and cause an annual loss of about $4,200 (approximately 5.75 million KRW) per lonely worker to employers."

To address this, Sejong City designated a loneliness officer after a series of deaths among its public officials, and some large companies like Samsung and POSCO have in-house psychological counseling centers as part of employee welfare. At the same time, there are concerns that isolation increases the incidence of various diseases such as hypertension and depression, expanding medical service costs. Additionally, since social relationships such as dating, pregnancy, childbirth, and marriage mainly occur in the 20s and 30s, an increase in isolated and reclusive youth struggling to build social relationships is expected to affect the birth rate.

Isolated Youth Aging into Middle-Aged and Elderly... "Long-Term Life Cycle Roadmap Needed"

Due to the nature of isolation and seclusion, where social relationships are not properly built, once a crisis occurs, the problem can become long-term. Especially, if isolation and seclusion occur during adolescence and youth, it can cause other social problems as they transition into middle age and old age.

The Ministry of Gender Equality and Family estimates about 140,000 isolated and reclusive adolescents (ages 13-18) in Korea, about 5.2% of the total adolescent population. Isolation starting in the teenage years due to school violence or maladjustment tends to lead to full-fledged seclusion from youth onward. Long gaps in social life caused by youth isolation create scarring effects (where accumulated past damage continues to affect the future) into middle and old age, making social reintegration such as employment and marriage more difficult.

In Japan, where the hikikomori problem emerged since the 1990s, the increase of middle-aged hikikomori has led to the term "8050 problem." This refers to elderly parents in their 80s supporting their hikikomori children in their 50s with pension income, falling into poverty and elderly depression. Prolonged seclusion negatively affects families including parents and children.

Kim Seong-a, Associate Research Fellow at the Korea Institute for Health and Social Affairs, said, "The problem of youth isolation will not decrease but gradually increase. Adolescents become isolated and reclusive youth, and isolated and reclusive youth become middle-aged. Therefore, a mid- to long-term roadmap with budget and administrative power is necessary," she advised.

Socioeconomic Losses Exceeding 11 Trillion KRW... "Long-Term Life Cycle Plan Needed"

Research shows that Korean society is already paying trillions of won due to youth isolation and seclusion. The Youth Foundation estimated in last year's study "The Social Cost of Youth Isolation" that the socioeconomic cost caused by youth isolation could reach at least 7 trillion KRW. This study applied the 3.1% isolation rate of youth aged 19-34 from the 2019 Social Survey (Statistics Korea) to the population census to calculate economic, policy, and health costs.

First, economic costs caused by reduced income and job performance of isolated and reclusive youth, and the loss of expected lifetime income of children due to not having children, amount to 6.7478 trillion KRW. Policy costs from receiving national basic livelihood security and unemployment benefits without direct economic activity are about 200 billion KRW. Medical service costs for isolated youth range from at least 29.3 billion KRW to a maximum of 43.5 billion KRW. Dividing this by the 340,000 isolated youth population in 2019 results in a social cost of 21 million KRW per person annually.

Considering this study was based on 2019, before the pandemic, social costs related to isolated and reclusive youth have likely increased over the past five years. The researchers warned that the isolation rate rose to 5% during COVID-19, and if this rate persists, annual costs would increase from 7 trillion KRW to 11.6 trillion KRW. They estimated that if the isolation rate rises to 7%, social costs would reach 16.2 trillion KRW.

Simply multiplying the government's estimated 540,000 isolated and reclusive youth by the annual social cost of 21 million KRW per person results in an annual cost of 11.34 trillion KRW for the isolation and seclusion youth problem. While implementing social services or cash benefits for isolated youth would increase short-term costs, resolving isolation would reduce future costs.

Kim Hye-won, Chairperson of the isolated youth support group Findown Youth and Professor of Youth Culture and Counseling at Hoseo University, warned, "If this continues, isolated and reclusive youth could reach 1 million, 2 million, or 3 million," emphasizing that society must not neglect the isolation and seclusion problem. Lee Dong-hoon, President of the National University Student Counseling Center Association and Professor at Sungkyunkwan University, said, "The topic of isolation and loneliness will become a major social problem across all age groups in Korean society. Especially as this youth generation becomes their 30s, 40s, and 50s, issues like solitary deaths, as seen in Japan, will emerge decades later," expressing concern.

'Check Your Level of Loneliness and Social Isolation Risk'

- Loneliness and Social Isolation Scale

https://www.asiae.co.kr/en/list/project/2024050314290051322A

If you want to read the 'Youth Isolation 24 Hours' articles

<1>Youth Isolated and Reclusive Individuals Asia Economy Met
① I am a 28-year-old isolated youth... "A being who cannot fulfill a single role"
② Isolation caused by employment... A day spent without saying a word all day
③ Harder than parenting is having 'no one to talk to'... That’s how depression came
④ Eating instant rice and ramen for 3 years and playing games all day... Emotional instability worsens and eventually

<2>2024 Isolation Awareness Survey
① 6 out of 10 say "I feel lonely"... Complaining of relationship breakdown and deprivation pain
② "Feeling alone at work"... 1 in 2 office workers say "Isolation feeling worsened"

<3>Youth Isolated and Reclusive Individuals Seen from the Side
① 'COVID cohort' is at risk... This year's flood of counseling calls
② Traces left at the end of isolation... "I want to see mom and dad, I'm sorry"

<4>Reasons for Isolation and Social Costs
① No job, no friends... Only a smartphone in hand
② Economic losses exceed 11 trillion KRW... If neglected, the nation will also 'shake'