Insurers are accelerating their entry into the nursing facility business in step with Korea's transition to a super-aged society. As the core insurance business loses growth momentum due to low birthrates and an aging population, they are expanding into nursing and care services. However, because large-scale investments are required up front, the focus is on securing early market share rather than generating immediate revenue.
According to the insurance industry on the 13th, among insurers, KB Life is expanding its nursing business the most aggressively. KB Golden Life Care, a subsidiary of KB Life, currently operates urban nursing facilities at five locations in the greater Seoul area: Seocho, Wirye, Eunpyeong, Gwanggyo and Gangdong. In 2028, it plans to build one more facility in Songpa District, Seoul.
Although the monthly contribution is 3.74 million won for a single room, which is not a small expense, most of the facilities are fully occupied. In addition, it operates one silver town (Pyeongchang-dong, Seoul) and four day care centers (day and night care centers) in Gwanggyo, Eunpyeong, Gangdong and Wirye.
As a latecomer, Shinhan Life established a dedicated senior business subsidiary, Shinhan Life Care, in 2024 and opened its first nursing home, Sollace Home Misa, in Hanam, Gyeonggi, in January this year. The contribution is about 4.8 million won per month for a single room. It has also secured sites in Haeundae, Busan, and in Eunpyeong and Wirye, Seoul, and is preparing additional openings. Shinhan Life Care also operates a day care center in Bundang.
Samsung Life Insurance is also reviewing an expansion of its nursing business. Centered on the silver town Noble County operated by its subsidiary Samsung Noble County, it provides housing and care services. Noble County, established in 2001 in Yongin, Gyeonggi Province, is the first silver town in Korea.
For an exclusive 60㎡ unit, the deposit ranges from 700 million to 800 million won, and monthly living costs exceed 3 million won, yet popular rooms have substantial waiting lists. Samsung Life Insurance plans to establish a senior business that links insurance and healthcare as a new revenue model early on.
According to the Ministry of Data and Statistics (MODS), the share of the population aged 65 or older surpassed 20% last year, and demand for long-term care is rising quickly. A noted advantage is the ability to expand customer touchpoints by providing health management, care and housing services even after policy enrollment.
However, profitability is not good so far. That is because insurers must purchase land to build nursing facilities. Facility construction and hiring specialized personnel also incur expense, so most remain in the red for now.
KB Golden Life Care, the industry leader, posted a net loss of 10.4 billion won last year, and Shinhan Life Care also recorded a net loss of 1.2 billion won. An industry official said, "For now, this is a phase of prioritizing market preemption and accumulating operating know-how over revenue," adding, "It will take considerable time to recoup investments."