Goldman Sachs warns South Korea’s aging population may hinder AI boom benefits

South Korea is sitting on one of the most paradoxical economic situations in the developed world. Its semiconductor giants are riding the AI wave to record profits, but Goldman Sachs is warning that the country’s rapidly shrinking and aging population could prevent those gains from translating into broad-based prosperity. The country entered “super-aged” status in 2024, meaning over 20% of its population is now 65 or older. By 2050, it’s projected to be the second-oldest economy on the planet, trailing only Hong Kong. The boom that stays at the top Samsung Electronics and SK Hynix dominate the market for high-bandwidth memory chips, the silicon that makes large language models possible. Operating profits at both companies have surged, and chip workers have reportedly received bonuses equivalent to roughly 3,000% of their monthly salaries, translating to payouts around $400,000. Goldman Sachs projects what it calls an “AI-driven super surplus” for Korea’s current account, expected to exceed 10% of GDP in 2026. But the wealth is pooling at the top. Elderly poverty rates remain high, domestic demand is stagnant, and the financial windfall from AI hasn’t meaningfully reached ordinary K...