Aging Tsunami: Can Korea & China Avert a Devastating Crisis Together?!

Hong Kong - It's no secret that relations between South Korea and China have been, shall we say, a bit complicated lately. But amidst the geopolitical jostling and fierce competition in the high-tech arena, a fascinating area of common ground is emerging: Aging. Both nations are facing a demographic tidal wave, and they're realizing that collaboration might be the best way to stay afloat.

Aging Tsunami: Can Korea & China Avert a Devastati...

This shared concern has been a recurring theme in discussions between Chinese President Xi Jinping and Korean President Lee Jae Myung. Since last year, the leaders have been actively exploring ways to work together to soften the economic blow of declining birthrates in both countries. It's a smart move, and perhaps a necessary one.

The culmination of these talks? A cooperation agreement focused on the "silver economy" – that is, the economic activity surrounding the needs of the elderly. This agreement was signed last November following a bilateral summit on the sidelines of the Asia-Pacific Economic Cooperation meeting. Xi Jinping himself stressed the importance of achieving mutually beneficial outcomes. It wasn't just diplomatic pleasantries; both sides clearly see an opportunity here.

During a state visit to China in January, Lee Jae Myung doubled down, describing the silver economy – encompassing both existing and emerging sectors focused on the elderly – as a field brimming with "limitless collaboration opportunities," even in the face of competition in other global markets. And you know what? The analysts seem to agree.

Xu Tianchen, a senior economist at the Economist Intelligence Unit, put it succinctly: "First, it’s definitely one of the least sensitive areas of cooperation in China-Korea relations, and second, it’s a 100 percent growing market in both countries." It's a pretty simple equation, really. Both nations are Aging at an alarming rate. South Korea is already classified as a "super-aged society," with over 21% of its population aged 65 or older in 2025. That's over 10 million people! China isn't far behind.

While China’s fertility decline has been even steeper, the country lags behind Korea in terms of the speed of the overall aging process. China's population shrank for the fourth year running in 2025, with births hitting rock bottom numbers not seen since 1949. Projections show China having more than 400 million people aged 60 or older by 2035. That's a huge market for age-related goods and services. And that's where Korea comes in.

Choi Seong-jin, a professor at Hanyang University Business School, points out that Korea's experience in dealing with rapid aging gives them a leg up in areas like care-service management, institutional design, and digital health technologies. China, which is desperately trying to bolster its care infrastructure, could really benefit from these "age-friendly" solutions. Meanwhile, Korean firms would gain access to a vast new market. Talk about a win-win.

Reports from within China paint a compelling picture of the economic potential. A Fudan University report projected China's silver economy to be worth a staggering 19 trillion yuan ($2.74 trillion) by 2035. The Chinese government is taking this seriously, too. The State Council released its first strategy document on developing the silver economy in 2024, urging the adoption of new technologies in elderly care, like robots for meal delivery and even companionship. It remains to be seen how successful this collaboration will be, but the logic is sound. Perhaps this shared demographic challenge will be the unlikely foundation for a stronger, more cooperative relationship between these two important Asian economies.