Earlier quoted context omitted.
3.65% / 1.75% ~ 2.09, so the difference in age profile might explain a factor 2 in the mortality ratio of Italy vs South Korea. The actual ratio is currently 7.9: 827 out of 12462 cases in Italy (6.6%), 66 out of 7869 cases in South Korea (0.84%).
If you factor in collapse of medical services -- Italy ran out of ventilators / ICU beds--the gap becomes clearer. You have to look at over 60 as more likely to be hospitalized, putting strain on medical system.
The real answer is simply that the number of tests is not equal to the number of cases.
The number of positive tests is a factor of the number of tests done, and how selective the testing was allowed to be. It is only loosely related to the number of infected people (technically it is the lower bound).