South Korea's Second Largest City Losing Young People... British Media Warns of "Extinction Risk"

Financial Times Highlights Busan's Population and Economic Crisis
"Shrinking Faster Than Other Metropolitan Cities in South Korea"

Night view of Busan city. Provided by Busan city.

The case of Busan, a city facing a population cliff, has been featured in overseas media. On the 9th (local time), the British daily Financial Times (FT) published an article titled "Endangered: South Korea's Second City Fears a Population Disaster," stating, "Busan is a city that possesses all the attractions and assets such as mountains, beaches, and a film festival, but it is shrinking faster than other metropolitan cities in South Korea, the country with the lowest birth rate in the world," and added, "It was a trade hub since the 20th century, but now it is aging faster due to the exodus of young people."

FT highlighted Busan's crisis by citing the population decrease of 600,000 since 1995, the elderly population ratio of 24% aged 65 and over, and last year's evaluation by the Korea Employment Information Service that Busan has entered the 'extinction risk stage.' FT analyzed that "Busan, which thrived as a center of trade and industry for most of the 20th century, is now suffering from a young generation exodus," and that this trend accelerated as the capital Seoul centralized the national economy and strengthened control."

Busan Youth Startup Hub. Provided by Busan City

The limited number of jobs relative to its size was also pointed out. FT stated, "The South Korean economy has increasingly gained momentum from producing and exporting more sophisticated products like semiconductor factories in the metropolitan area, and universities and research institutions have relocated to meet the demand for skilled workers," and criticized, "Although Busan is the birthplace of leading companies such as Samsung and LG, none of the top 100 Korean companies have their headquarters in Busan." Lee Sang-ho, a researcher at the Korea Employment Information Service, said, "Amid competition with China, the centralization of South Korea's industry and economy has intensified, leading to a 'chain decline' of regional economic centers including Busan."

FT reported, "Young people in Seoul also give up marriage and child-rearing due to fierce competition for well-paying jobs and education," adding, "The difference is that the decrease in the working-age population in Busan is much more rapid." Furthermore, it criticized, "The South Korean political scene, still distracted by the aftermath of President Yoon Suk-yeol's martial law declaration, shows almost no signs of having the capacity to restructure the economy fundamentally."

Children are running and playing at a school in Busan. Provided by Busan City

Busan, with a population of 3.3 million, has been gradually declining as 600,000 people left between 1995 and 2023. Busan's total fertility rate was 0.66 in 2023, the second lowest after Seoul (0.55), and its elderly population was 22.6% in 2023, the highest among special and metropolitan cities. Looking at the Gross Regional Domestic Product (GRDP), an indicator of urban economic power, Busan's GRDP was 114 trillion won in 2023, about 20% of Seoul's. While Incheon grew by 3.2% compared to 2022, Busan grew by only 0.3%, ranking third among special and metropolitan cities, behind Incheon (116 trillion won).