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Report Says Elderly Market Boom Ahead

Posted July. 29, 2006 03:00,   


A new report reveals that for a decade starting from 2010, the Korean elderly market, or the so-called “silver industry” in Korea, will show brisk growth of more than 10 percent per year on average.

The Korea Chamber of Commerce and Industry predicted on July 28 in its report titled, “Growth Outlook on the Korean Silver Industry,” that from 2010 when the baby boomers mostly born after the Korean War (namely those born in the late 1950s up to the early 1970s) retire en masse, the yearly growth rate of the silver industry would reach up to 12.9 percent on average for a decade.

The report prospected that during the same period, the yearly growth rate of the overall industry would hover around 4.7 percent, but the elderly-friendly sectors would continue showing high growth, including elderly care (6.6%), medical devices (12.1%), information (25.1%), leisure (13.7%), financial activities (12.9%) and housing (10.9%).

It went onto emphasize that the year 2008 is worth regarding as the year when the purchasing power in the elderly market would soar because from then on the percentage of those aged 65 and older would take up around 10 percent of the population and Korea’s per-capita income would reach 20,000 dollars.

Given that the average age of the retirees from their first job is 53, the year 2008 is likely to be the year when baby boomers would mostly retire.

Jin-Young Hwang buddy@donga.com