Three out of 10 cars in Korea owned by individuals aged 60 and over

[Courtesy of Kia]

Three out of 10 individual car owners are over 60 years old, data showed Monday, indicating that the average age of car owners is growing amid the low birth rate and aging population.

According to data from the Ministry of Land, Infrastructure, and Transport, 31.6 percent, or 6.9 million cars of some 21.8 million cars owned by individuals in Korea were driven by those aged 60 and over at the end of March.

The share of car owners aged 60 and over surpassed 30 percent this year after reaching 23.8 percent at the end of 2018 and 29.3 percent at the end of 2022.

The population of car owners aged under 40, however, has shrunk, data showed.

The number of cars owned by those in their 30s and younger fell to 3.4 million at the end of March from 4 million in 2018. The younger group’s share fell by 35 percentage points to 49 percent from 84 percent during the same period.

The main factor behind the gap is a demographic shift towards an invested pyramid shape in which the elderly population grows and the younger declines.

Another factor is the decline in purchasing power among individuals in their 30s due to fewer decent jobs and rising living costs that all lead to a reduced disposable income.

Individuals in their 60s, on the other hand, spend more time in economic activity and have greater purchasing power than their younger counterparts.

The disparity in the purchasing power between the two age groups is evident in statistics.

According to data from the Ministry of Public Administration and Security, the country‘s population aged between 30 and 39 stood at 6.6 million at the end of March. Car owners accounted for 44.2 percent of the age group, down 2.3 percentage points from 46.5 percent in 2018. During the same period, the car ownership rate in those in their 60s rose 7.6 percentage points to 66.8 percent at the end of last month.