As Korea's population structure ages rapidly, life insurers are increasing the supply of care facilities and senior welfare dwellings ("silver housing"), mainly in the greater Seoul area.
According to the financial sector on the 28th, KB Life is operating silver dwellings in six locations including Wirye, Eunpyeong and Seocho; Shinhan Life in Bundang and Hanam; Samsung Life Insurance in Yongin; and KDB Life in Goyang. Hana Life is also pushing to operate care facilities with a target of the second half of 2027.
Korea's population structure is changing the fastest in the world. It took Japan 10 years and the United States 15 years to move from an aged society to a super-aged society, but for Korea, it was only about 7 years and 4 months from Aug. 2017 to Dec. 2024.
As the population structure shifts, demand for care is also increasing. According to the Ministry of Data and Statistics (MODS), the population aged 75 and older is expected to grow to 9.89 million in 2040 and 11.53 million in 2050. While demand for care is rising, the supply of care facilities is insufficient. According to the National Health Insurance Service, privately run care facilities, which account for about 75% of facility operators, receive low service evaluations, with 54.8% rated at grade 3 or below on a 1–5 scale.
In response, the industry says deregulation is needed to expand the supply of care facilities. To operate a care facility now, one must own the land and buildings, but the industry argues that authorities should ease rules to let private corporations increase paid service items within care facilities and allow lease-based operations on the condition that the quality of care services is ensured.
There is also a view that silver dwellings meeting certain staffing and equipment standards for care should be designated as long-term care institutions to encourage more private corporations to enter the senior housing business.