Goldman Sachs has warned that South Korea’s rapidly shrinking and aging population could prevent the benefits of the AI boom from translating into broad-based prosperity. The country entered super-aged status in 2024, with over 20% of its population now 65 or older, and its fertility rate is projected to drop to 0.80 in 2025, the lowest in the world. Despite record profits from semiconductor giants Samsung Electronics and SK Hynix, Goldman Sachs projects an AI-driven current account surplus exceeding 10% of GDP in 2026, but this wealth remains concentrated in the technology sector. Youth employment in AI-exposed sectors fell by 285,000 between June 2022 and June 2026, while the government announced a nearly $1.2 trillion public-private investment plan. Goldman Sachs warns of structural risks from rising income inequality, elevated elderly poverty, and declining youth employment in tech.
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