SEOUL, September 02 (AJP) - The Bank of Korea opened a two-day conference Wednesday on ageing and longevity, where Governor Hyun Song Shin urged early preparation for demographic pressures on growth, productivity and interest rates.
The conference, titled “The Economics of Population Ageing and Longevity: From Challenges to Opportunities,” runs through Thursday in Seoul.
It is jointly hosted by the BOK, the Centre for Economic Policy Research and the Organisation for Economic Co-operation and Development.
The event brings together economists and policymakers to examine how declining fertility and ageing populations could affect economic growth, interest rates, labor markets and technological adaptation.
In a video address opening the conference, Shin described demographic change as one of the most important long-term issues confronting central banks. Shin is currently attending the G20 finance ministers and central bank governors meeting in Asheville, North Carolina.
He said it would help determine future productivity, potential growth and the long-run equilibrium interest rate.
Shin said developments now unfolding in South Korea could offer an early indication of demographic challenges that many other countries will eventually face.
“Demography is not destiny,” Shin said, stressing that productivity and long-term growth have historically depended heavily on the creation and diffusion of knowledge.
Unlike short-term economic shocks, demographic changes can be foreseen decades in advance. That gives policymakers an opportunity to prepare before their effects fully materialize, he said.
Shin pointed to Korea's position in the artificial intelligence ecosystem as a potential advantage in responding to a shrinking and ageing workforce.
He also cited the country's strength in semiconductor production and AI-driven investment.
Shin said the favorable technological environment means Korea should use the current window to prepare for the economic consequences of demographic change rather than postpone adjustment.
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