Older dementia patients in Korea hold $110.5 billion in assets, gov’t data shows

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Older dementia patients in Korea hold $110.5 billion in assets, gov’t data shows

Published: 06 May. 2025, 16:50

Audio report: written by reporters, read by AI

A patient at a hospital in Eunpyeong District, northern Seoul, walks in the hallway on April 4, 2024. [YONHAP]

The total assets held by older dementia patients in Korea are estimated at 154 trillion won ($110.55 billion), equivalent to roughly 6 percent of the country’s GDP, according to government data released on Tuesday.

As Korea’s population ages rapidly, experts are calling for transparent management and protective measures to prevent financial abuse and economic stagnation.

The Presidential Committee on Aging Society and Population Policy announced the results of the first government-led survey on the financial assets of older dementia patients. The societal issues of “dementia money” — which refers to assets that become effectively frozen because patients can no longer manage them — first emerged in Japan, where population aging has progressed faster. Until now, no precise data existed on the scale of such assets in Korea.

According to the survey, as of 2023, there were 1,240,398 people aged 65 and older with dementia in Korea. Of them, 61.6 percent — or 764,689 individuals — owned either income-generating or tangible assets. The combined value of these assets was 153.5 trillion won, or about 6.4 percent of the nation’s GDP. While older dementia patients make up just 2.4 percent of the total population — 1.24 million out of 51 million — they account for a disproportionately large share of household assets.

The committee conducted the joint study with the National Health Insurance Service (NHIS) and Seoul National University’s Center for Health and Finance. Data sources included medical expense claims from the NHIS, income information from the National Tax Service and Korea’s five public pension systems.

Broken down by asset type, real estate made up 74.1 percent, or 113.8 trillion won, of dementia patients’ total holdings. Financial assets followed at 21.7 percent, or 33.4 trillion won.

People wait in line for free meals at Tapgol Park in Jongno District, central Seoul, on Dec. 24, 2024. [YONHAP]

Due to the accelerating pace of aging, the number of older dementia patients in Korea is projected to rise significantly, reaching 1.79 million in 2030, 2.85 million in 2040 and 3.97 million in 2050. Correspondingly, dementia money is expected to more than triple, reaching 488 trillion won by 2050. That figure would be equivalent to 15.6 percent of Korea’s forecast GDP for that year.

As the volume of dementia money grows, so too do the risks — both personal and societal.

Financially, older patients unable to manage their assets may become targets for exploitation. There have been repeated cases of caregivers or acquaintances siphoning funds from dementia patients’ bank accounts. At the societal level, frozen assets result in reduced circulation of capital through consumption or investment, negatively impacting the broader economy.

To address the issue, the committee said it plans to improve private trust systems, expand the public guardianship program for dementia patients and introduce a public trust management system.

“This first comprehensive estimate of dementia money is an important starting point for creating systematic policy responses,” said Joo Hyung-hwan, vice chair of the committee. “We will follow up with commissioned research and include asset protection measures in the Fifth Basic Plan on Aging and Low Fertility, to be released at the end of the year.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY NAM SOO-HYOUN [[email protected]]