The rapidly aging population has been a key agenda item in recent meetings between Chinese President Xi Jinping and South Korean President Lee Jae-myung. The two leaders have pledged to coordinate responses to economic shifts caused by low birth rates, SCMP reported on 18/2.

In 11/2025, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in South Korea, the two nations signed a cooperation agreement on the "silver economy". This encompasses existing and emerging industries serving the elderly. President Xi underscored the necessity of mutually beneficial outcomes in this cooperative sector.

During his state visit to China in 1, President Lee also described the silver economy as a sector with "unlimited cooperation opportunities", despite the ongoing competition between the two countries in other global market segments.

Analysts generally agree with this assessment, suggesting it could be a foundation for future cooperation between the two leading Asian economies, even amidst geopolitical challenges.

"First, this is clearly one of the least sensitive areas of cooperation in China-South Korea relations. Second, it is a 100% growth market in both countries", said Xu Tianchen, a senior economist at the Economist Intelligence Unit, the research division of British media group The Economist Group.

South Korean President Lee Jae-myung (left) and Chinese President Xi Jinping at the Great Hall of the People in Beijing on 5/1. *Photo: AFP*

Populations in both South Korea and China are aging at an unprecedented rate, with demographic shifts occurring much faster than policymakers anticipated.

South Korea is among the countries with the world's lowest birth rates and has been classified as a "super-aged society". In 2025, over 21% of its population, equivalent to 10,84 million people, will be 65 years or older.

China is not yet at such an advanced stage, but its birth rate decline is even more pronounced. The country's population is projected to decrease for the 4th consecutive year in 2025, with the number of newborns reaching its lowest since 1949. By 2035, China is forecast to have over 400 million people aged 60 or older.

Choi Seong-jin, a professor of strategic management at Hanyang University Business School in South Korea, stated that South Korea's early experience in addressing a rapidly aging society has allowed it to accumulate expertise in care service management, institutional design, and competitive digital medical technology.

He believes China could benefit from South Korea's proven elder-friendly solutions.

"China does not lack capital or production capacity. The issue lies in breakthrough solutions for elder care, insurance, and advanced medical equipment", remarked Gary Ng, Asia-Pacific economist at investment bank Natixis.

In return, South Korean businesses could access an enormous new market. A report by the Fudan Institute of Aging Research, part of Fudan University in Shanghai, forecasts China's silver economy to reach 19,000 billion CNY (2,740 billion USD) by 2035, equivalent to nearly 13,6% of the country's 2025 GDP.

China's State Council issued its first strategic document on the development of the silver economy in 2024. It encourages the application of new technologies in elder care systems, such as robots capable of delivering meals and providing companionship to the elderly.

"Once widespread domestic support is garnered, innovation can occur very rapidly, and the target market scale is enormous", stated Anthony W. D. Anastasi, an associate professor of economics at the China-Britain University, part of Shanghai University of Science and Technology.

A robot performs moxibustion therapy for an elderly person at a nursing home in Shenzhen, Guangdong province, southern China. *Photo: Xinhua*

Market observers see significant potential in elder care robots, envisioning a combination of South Korean precision hardware and sensors with China's vast AI training data sets and manufacturing scale.

However, according to Anastasi, comprehensive cooperation may remain limited for some time, as these "strategic technologies" could quickly become sensitive, even when used in seemingly innocuous contexts. Ng also noted that data security concerns could pose challenges for South Korean businesses operating in China.

For now, analysts suggest that initial benefits are likely to emerge in expertise-based fields, such as the operation of elder care facilities and human resource training. The tourism sector, boosted by visa-free policies and more active senior lifestyles, could also present growth opportunities with fewer political barriers.

"There is ample room for joint research and development, with significant scope for AI applications and consumer market expansion. If developed correctly, this could become a major industrial segment", said Park Han-jin, a visiting professor of diplomacy and Chinese trade at Hankuk University of Foreign Studies.

Huyen Le (According to SCMP)