[Population Measures] Foster Senior-Friendly Industries and Remodel Vacant Houses... Establish the Senior-Friendly Promotion Committee

Pan-Government 'Population Policy TF' Announces Response Directions to Population Structure Changes

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kim Hyunjung] The government plans to launch a nationwide survey on vacant houses in local governments by 2022 to devise management and utilization plans, and to attempt redesigning various sectors such as industry, finance, and systems centered on the elderly. This is to respond to the rapidly changing population structure due to low birth rates and aging, and is part of preparatory work to turn the crisis of regional depopulation and aging into an opportunity.

The Ministry of Economy and Finance announced on the 26th that the inter-ministerial Population Policy Task Force (TF) presented and announced the 'Response Direction to Population Structure Changes' at the Central Emergency Economic Countermeasures Headquarters meeting.

◆ Strengthening management and development of vacant houses, which have become eyesores in rural areas = First, the government plans to proactively respond to regional depopulation by ▲efficient management of increasing vacant houses ▲revitalization of rural and fishing villages ▲establishment of transportation environments in preparation for an aging society. Vacant houses have become symbols of regional depopulation, turning into eyesores or crime-prone areas in rural and fishing villages. As of June this year, only 79 out of 226 local governments (34.9%) have completed surveys on vacant houses. Accordingly, the government will start surveys on vacant houses in urban areas by next year and in rural and fishing villages by 2022, linking national subsidy projects such as vacant house and urban regeneration New Deal projects and living condition improvement projects in vulnerable rural and fishing areas from the second half of this year. In particular, if vacant house owners sell vacant houses and attached land to public project implementers, a 10% reduction in capital gains tax will be applied, and a demonstration exemption for business models allowing lodging businesses using vacant houses will also be considered. In the mid to long term, the government plans to strengthen the management responsibility of vacant house owners by imposing fines for violating demolition orders or introducing a vacant house registration system. Various incentives will also encourage local governments to carry out vacant house maintenance projects.

In rural and fishing villages, if vacant houses are converted into startup spaces or service provision spaces such as education, culture, and care, remodeling and construction costs of up to 450 million KRW per site will be supported. If vacant houses are used as residential facilities for returnees to farming, demolition costs will be added to the previously supported housing construction costs of up to 30 million KRW per site.

Additionally, to respond to aging and labor shortages, the government plans to diversify and advance agricultural and fishery production methods using information and communication technology (ICT) and develop private investment models for utilizing idle and aging facilities. Intensive education and customized financial support for young farmers will be strengthened, and plans to foster new rural and fishing village industries such as green bio, tourism, and local food will be prepared.

◆ Formation of the Elderly-Friendly Promotion Committee... Reform of industry, transportation, and systems = Along with this, the government will create transportation policies considering the physical and mobility characteristics of the rapidly increasing elderly population and foster elderly-friendly industries.

While expanding elderly-friendly facilities such as low-floor buses and boarding equipment, the number and scope of elderly protection zones in areas frequently visited by the elderly, such as nursing homes and traditional markets, will be increased to about 2,700 by 2022. Central pedestrian islands where people can stop and rest while crossing the street and resting areas in front of crosswalks will also be increased. Considering vulnerable road users, the walking speed standards at crosswalks will be reset, and the introduction of a new automatic extension system will be reviewed.

By the end of this year, 28.7 billion KRW in national funds will be invested in unprofitable routes in rural, remote, and isolated areas, and demand-responsive transportation such as public taxis will be expanded. The linkage service combining public taxis and rail transportation will be expanded from 40 stations this year to 78 stations by 2024. Additionally, driving license screening for elderly drivers aged 75 and over will be strengthened, and aging transportation infrastructure will be maintained.

To foster elderly-friendly industries, a provisional Elderly-Friendly Promotion Committee will be formed by the second half of this year, and a public-private consultative body will be established. By next year, a system for collecting behavioral information of the elderly will be built, and a roadmap for standardizing elderly-friendly products and services will be developed. Through regulatory free zones, demonstration exemptions for elderly-friendly projects in the bio-health sector will be granted, and additional related zones will be designated.

Furthermore, to develop consumer-centered elderly-friendly products and services, living labs involving the elderly, researchers, and suppliers will be operated, and regional elderly-friendly industry innovation centers will support prototype feedback and commercialization. Three innovation centers will be selected by next year, and five or more between 2022 and 2024. Elderly-friendly innovative companies will be selected to receive priority policy funding, and the public sector will support expanding related sales channels.

Additionally, promising elderly-friendly industries in medical care, care and independence, housing, food, and leisure sectors will be discovered and fostered. In particular, 700 care robots supporting physical activities and nursing for the elderly and disabled will be distributed within the year, and non-face-to-face care services through emergency safety and security services will be developed.

[Image source=Yonhap News]

◆ Establishment of the Elderly Financial Damage Prevention Act and other elderly-friendly financial reforms = The government plans to improve related education and infrastructure so that the elderly can adapt to the rapidly changing financial environment. In particular, the 'Elderly Damage Prevention Act' will be enacted to prohibit age discrimination without reasonable grounds and to mandate impact analysis by age group when developing new products. Regulations on discrimination and financial exploitation will be significantly strengthened, applying a zero-tolerance principle for incomplete sales targeting many elderly people.

Considering the solidification of online and mobile-centered transaction structures that are difficult for the elderly to access, the government will strengthen prior procedures for financial companies closing offline branches to improve financial accessibility. When branches are closed, alternative channels such as mobile, unmanned branches, and partnerships must be provided. An elderly-only app with large fonts, core services, and voice recognition will also be developed.

The government plans to develop and supply elderly-friendly financial products by creating face-to-face transaction products exclusively for the elderly, expanding insurance subscription ages by about five years around 65, and introducing alternative product guidance systems. Additionally, a qualification course for senior financial education instructors will be established, and efforts will be made to improve the efficiency and systematization of financial education for the elderly centered on the Financial Education Council.

Along with this, the government plans to change age criteria for elderly welfare policies considering social perception changes regarding elderly age due to increased average life expectancy and improved health levels. A 'Senior Preferential System Improvement TF' will be formed in the second half of this year to collect opinions and prepare improvement plans. In the long term, elderly welfare policies will be divided into seven areas: old-age support, jobs and social contribution, medical care, care and protection, housing, social participation and cultural activities, and traffic safety, to review long-term directions for change.

This content was produced with the assistance of AI translation services.