Korea – the Three Ds

My latest video, looking at the three Ds that are challenging Korea's structural growth prospects: Demographics, Debt, and a Development model that is struggling to cope with the competition emerging from China.

Paul Cavey

Oct 9, 2025 • 1 min read

It has been common to compare China's challenges today with Japan's in the 1990s: Debt, Demographics and Deflation.

But China isn't the only economy facing the dreaded three Ds. Korea, albeit in a slightly different way, is another. It doesn't have deflation, but it does have terrible demographics, high debt, and also a development model challenged by the rise of China.

This video discusses how these challenges affect Korea's economy. I also look at the policies that can be used to improve the outlook. Needless to say, implementing the sort of structural changes that are needed will be difficult.

Chapters:

00:00 - Introduction: Parallels with Japan's Three Ds

00:45 - Introducing Korea's Three Ds: Demographics, Debt, and Development

04:00 - The First D: Demographics and Super Ageing

10:00 - The Second D: Debt Levels in Private Sector

15:33 - The Third D: Development Model Challenged by China

18:41 - Structural Issues and Resolution Challenges

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