South Korea's second largest city faces 'extinction'

(CLO) The population of the South Korean city of Busan is shrinking faster than any other urban area in a country with the lowest birth rate in the world, possibly leading to "extinction".

During the 20th century, Busan was a bustling center of commerce and industry. But today, the city is facing an exodus of young people, causing its population to age faster than any other urban area in a country that already has one of the lowest birth rates in the world.

Last year, the Korea Employment Information Service classified Busan as “endangered,” citing an imbalance between the labor force and non-working population that threatens the city’s economic sustainability.

“Not only my parents, but most parents want their children to move to Seoul,” said Seo, 32, who left the port city of Busan right after graduating from high school and now works in the capital.

South Korea's second largest city faces extinction risk picture 1 — Busan port city. (Photo: Wikipedia)

Busan, with a population of 3.3 million, lost 600,000 people between 1995 and 2023. Demographers warn that the trend is accelerating as the population ages and Seoul continues to consolidate its position as the country's economic hub.

Busan is in danger of "disappearing"

Busan retains its natural beauty and locational advantages, with mountains, beaches, temples, vibrant nightlife and art festivals. However, despite being the birthplace of Samsung and LG, none of Korea’s top 100 largest companies are headquartered here.

“More and more young people are leaving,” Seo said. “Every time I come back, I see the city losing its vitality.”

Busan thrived in the late 19th century thanks to trade with Japan and continued to boom in the 1960s and 1970s thanks to a national industrial strategy. But as South Korea shifted to a high-tech economy, major companies, universities and research institutes moved to Seoul, leaving Busan behind.

Economic centralization has pushed Busan into a downward spiral, exacerbated by the shift of trade to the port of Incheon near Seoul. This phenomenon is affecting many major cities outside the capital region, according to researcher Lee Sang-ho. While Busan men can find work in industrial centers, women often have to go to Seoul for better job opportunities.

Many also blame local governments for the city’s decline. Lee Seung-han, secretary-general of Busan Social Welfare Solidarity, has criticized mayors for selling public land to developers instead of finding new economic drivers. Rising housing prices have made it harder for young people to settle down, widening the gap between rich and poor.

“They act more like real estate investors than city leaders,” Lee said. “Busan used to be a ‘city of mountains,’ but now it has become a ‘city of apartments.’”

Lee Sang-ho of KEIS points out that the seaside resort of Haeundae is one of the areas most at risk of depopulation in Busan, as high real estate prices make it impossible for young people to buy homes, while the majority of residents live in less developed areas.

Kim Se-hyun, director of the Population Impact Assessment Center at the Busan Development Institute, said the city’s population is expected to decline 33.57 percent between 2020 and 2050, compared to Seoul’s 21.45 percent decline. What’s more worrying is that Busan’s working-age population will shrink even faster, although the risk of literal “extinction” remains remote.

Local economy weakens and population declines

Economists say the decline of local economies is becoming increasingly evident as the Seoul-centric model no longer generates enough GDP growth to offset the impact of the demographic crisis.

The Bank of Korea has cut its 2025 GDP growth forecast to 1.6% to 1.7%, down from a previous forecast of 2.3%. Governor Rhee Chang-yong has proposed drastic measures, including limiting university admissions in wealthy areas of Seoul, to encourage people to return to the provinces.

Busan Vice Mayor Lee Jun-seung has called for fiscal decentralization to attract skilled young workers and highlighted immigration as a key factor. The city is planning to issue special visas for Southeast Asian students and workers.

However, Lee Sang-ho of KEIS warned that if the imbalance in regional development is not addressed, even immigrants will choose Seoul over Busan.

Amid political turmoil following President Yoon Suk Yeol's controversial imposition of martial law in December, there is no sign of a sweeping economic overhaul.

Yang Mi-sook, head of a local advocacy group, laments Busan's decline as thousands of people leave every month.

“It’s sad and frustrating,” she said. “The government has to admit this is a serious problem – if there are no citizens left, there is no need for politicians.”

Even Seoul, which attracts young people from all over South Korea, is facing a demographic crisis. The country's fertility rate hit a record low of 0.72 in 2023, but in Seoul it is even lower at 0.55. Meanwhile, the OECD has determined that a fertility rate of 2.1 is needed to maintain a stable population.

(CLO) The population of the South Korean city of Busan is shrinking faster than any other urban area in a country with the lowest birth rate in the world, possibly leading to "extinction".

Busan is in danger of "disappearing"

Local economy weakens and population declines

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