Seoul City’s proactive response to the demographic challenges posed by a declining birthrate and an ageing population is clear in its ambitious 2025 budget of 48 trillion won ($34.7 billion). This represents a 5% increase from the previous year and reflects the city's commitment to sustainable development, social welfare, and economic growth in the face of significant demographic shifts.
Key Strategic Focus Areas: Addressing Low Birthrate and Housing Crisis
The city’s budget emphasises the urgent need to combat the low birthrate by targeting housing affordability, a major barrier for young couples and newlyweds in Seoul. With 1.1 trillion won allocated to public rental housing, key initiatives include:
4,000 housing units for newlyweds
2,504 units for young households
Monthly subsidies of 300,000 won for families without property ownership following childbirth
These targeted measures aim to alleviate the financial burden of housing, making it easier for young families to start and expand their households, thereby fostering an environment conducive to population growth.
Comprehensive Support for Childbirth and Parenting
To address the broader issues surrounding family formation, Seoul is rolling out a comprehensive suite of support policies for childbirth and parenting. These include:
Subsidies for medical and surgical treatments for infertile couples
Financial support for households with newborns
Programs designed to reduce the long-term costs associated with raising children
As the birthrate shows early signs of improvement, with an 8% rise in births and a 33% increase in marriages year-on-year, Mayor Oh Se-hoon is committed to ensuring this momentum continues. “Our bold investments will sustain this upward trend,” he stated.
Preparing for an Aging Population: A Super-Aged Society
With the ageing population in mind, Seoul is enhancing its infrastructure to support the elderly. As the city approaches the threshold where 20% of its population will be 65 or older, the following initiatives are being introduced:
Exercise facilities near subway stations to promote senior wellness
A public care system to support severely ill and isolated individuals, with a 36.2 billion won allocation to improve health and safety services
These initiatives aim to ensure that Seoul’s elderly population can live independently, with access to the care and resources needed for healthy ageing.
Global B2B Opportunities in the Longevity Economy
Seoul’s strategic investments in housing, healthcare, and eldercare represent significant B2B opportunities for international businesses involved in the longevity economy. Companies specializing in:
Affordable housing solutions
Health-tech and telemedicine
Senior care services and technology
Urban development and smart city infrastructure
Seoul’s commitment to addressing demographic challenges offers a unique opportunity for B2B collaborations across various sectors. Global businesses with expertise in these areas can play a key role in shaping the future of cities worldwide, leveraging Seoul’s experience as a model for other ageing urban centers.
By fostering innovation, promoting long-term sustainability, and focusing on global collaboration, Seoul positions itself as a key player in the longevity economy. International companies have a chance to engage with Seoul’s forward-thinking policies, helping to create solutions that address both the challenges and opportunities arising from an ageing population. This strategic approach benefits Seoul’s residents and opens avenues for cross-border partnerships, making Seoul a hub for longevity innovation.
Source: The Korea Times
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