Key Facts
• South Korea’s population decline mirrors Japan’s, driven by low birth rates.
• Busan, South Korea’s second-largest city, classified as an ‘extinction risk’ area in June 2024.
• Over 30 years, Busan’s population dropped by 600,000; aging rate may exceed 50% by 2050.
• Seoul’s real estate prices surged, with average apartment prices doubling in 8 years.
• A new Seoul apartment (84 sqm) costs over $1.1 million; 90% sell within 6 months.
• Over half of South Korea’s population now resides in the Seoul metropolitan area.
• Busan’s new apartments have a 50% occupancy rate; some buildings house only 2 families.
• Formerly thriving areas in Busan, like university districts, are now facing slum-like conditions.
• Young people leave Busan for jobs in Seoul, further accelerating local decline.
• South Korea’s government plans decentralization to address the crisis, affecting 228 municipalities.
Summary
South Korea’s second-largest city, Busan, is grappling with a severe population decline, leading to its classification as an ‘extinction risk’ area in 2024. Over the past three decades, the city has lost 600,000 residents, with projections indicating an aging rate surpassing 50% by 2050. While Seoul’s real estate market thrives, with apartment prices doubling in eight years, Busan faces a stark contrast. New apartments in Busan have low occupancy rates, and once-bustling areas, such as university districts, are now deteriorating. The concentration of over half the nation’s population in the Seoul metropolitan area exacerbates the issue, as young people leave Busan for better job opportunities. To combat this crisis, the South Korean government is exploring decentralization and relocating government functions to revitalize struggling regions.
