'Somebody has to do something, or there will not be a Korea in 30-40 years'
Renowned US investor Jim Rogers cited South Korea’s declining population as the biggest concern for international investors.
Foreseeing a potential long-term economic impact, he said that South Korea's demographic crisis poses a greater risk than geopolitical tensions with North Korea or economic competition with China.
“You have a very serious demographic problem," Rogers told reporters at a press briefing on Saturday in Seoul.
South Korea’s population is projected to decline after 2028, reaching 39.29 million by 2067, similar to the level in 1982, according to Statistics Korea. The country has had the world's lowest fertility rate since the 2000s.
"Somebody has to do something, or there will not be a Korea in 30 or 40 years," warned Rogers.
"That’s the main risk that I see in Korea right now,” Rogers said.
Rogers also pointed out that many financial markets have been experiencing prolonged periods of growth, making it difficult to find attractive investment opportunities.
He highlighted South Korea as a market of increasing interest.
“I don't have any business in many markets in the world right now because most markets have been going up. The American market has been going up for 15 years — it’s the longest in American history. But I am looking, and I am certainly looking at Korea more because I am learning more while I am here,” he said.
However, geopolitical concerns make some international investors hesitant due to the risk of conflict on the Korean Peninsula.
“As long as there’s a potential for war, many investors will not be too serious about any country that might have a big war someday,” he said.
Rogers also suggested a radical approach to easing inter-Korean tensions.
“If I were doing it, I would go to the DMZ tomorrow, open the gates, have a big, big party, and tell the American army to go home. We have been here thousands of years; we can take care of ourselves.”
Rogers anticipates the eventual unification of the two Koreas and hopes the first step will be opening the inter-Korean border, enabling unrestricted movement.
Offering investment advice, Rogers cautioned against blindly following market trends and instead urged investors to rely on their own knowledge.
“Do not listen to hot tips. Stay with what you know. Now, some people say, ‘But that's boring.’ If you want to be rich, be boring,” he suggested to the attendees.
Rogers was in Seoul to attend an investment agreement ceremony with Deep Sea Co., Ltd., a Korean firm that produces premium deep-sea mineral water. Jim Rogers currently serves as an internal director of the company behind the mineral water brand Saranghae 300.
“From what I know, this water is magic. And you can't find it anywhere else,” said Rogers.
“For some reason, nature put the water in the East Sea,” Rogers remarked.
With the global bottled water market growing at an annual rate of 20 percent, industry experts say that Rogers saw potential in both the market and Deep Sea itself.
"If the people are good and the product is good, I invest," said Rogers when asked what made him back Deep Sea.
"I hope everyone becomes wealthy with this water," he said, predicting that Saranghae 300 will become the world’s leading premium bottled water brand within five years.
sanjaykumar@heraldcorp.com
