Ageing S Koreans less inclined to spend savings

Seoul

SOUTH Koreans are getting older and spending less, making it more difficult for the central bank to stoke spending and price gains to keep the nation's tiger economy powering along.

Cho Woang Lae, a retired engineer living in Seoul, is like many of the 7.6 million South Koreans who are 60 or over and see the Bank of Korea's (BOK) recent interest-rate cuts as harmful rather than helpful. Conventional economic wisdom doesn't apply to Mr Cho. Record-low rates haven't encouraged the 64-year-old to borrow and spend or invest. For him it means lower returns on the 300 million won (S$373,865) bank deposit that helps fund his retirement.