[Finance for Well-Dying] ① Generational Shift to 'Affluent' Seniors... Financial Sector Eyes New Opportunities

The Rise of the 'Wealthiest' Households in Their 60s
Growing Preference for Independent Living Over Family Dependence
"Seeking Trustworthy Premium Facilities"
Financial Sector Leverages Capital and Brand Trust
Full-Scale Competition to

"If my health deteriorates in the future, I would rather enter a specialized nursing facility with excellent amenities than rely on my children. If it is a trustworthy place where my autonomy is respected and I don't have to worry about human rights violations, I am willing to pay the cost."

As awareness of 'well-dying'—the desire to maintain dignity until the end of life—spreads, the perspective of the elderly toward nursing facilities is undergoing a fundamental change. Whereas in the past, nursing homes were viewed negatively as 'places where people are abandoned by their families,' they are now being recognized as a 'rational choice' for a stable later life through professional care services.

According to the final report on 'Strategies to Promote Insurers' Entry into the Silver Industry' by the Seoul National University Industry-Academic Cooperation Foundation, obtained by The Asia Business Daily on March 17, 31.3% of respondents in a survey on the status of the elderly said they wished to live in facilities such as nursing homes for the elderly that provide care, meals, and daily convenience services. Professor Hong Seokcheol of the Department of Economics at Seoul National University said, "Some elderly people want to continue living at home and receive visiting support services, but as their health declines, there is a growing demand for nursing and medical care services."

Lee Jaewan, a research fellow at Hana Institute of Finance, also observed, "The new senior generation recognizes the need to enter nursing care facilities as a realistic option for the future." According to the institute's survey, 69.9% of elderly respondents said they would consider moving into a nursing facility if they experienced health difficulties in the future. The main reason was "to reduce the burden on family members" (61.6%), followed by "professional care services" (24.1%).

As the baby boomer generation (born between 1955 and 1963) transitions into the elderly population, the desire for 'well-dying'—maintaining dignity and autonomy until the very end—continues to rise. There is a growing trend of preparing for a well-managed end of life while living independently. This generation is strongly willing to pay for high-quality care and nursing services, even if the price is relatively high. One 67-year-old woman said, "Although I am still relatively healthy, if I become less mobile as time goes by, I want to liquidate my assets and move into a nursing facility with excellent services. If I can avoid relying on my children and there are no human rights violations, I have no regrets about the cost."

Solid Financial Backing: The 'Wealthiest' Generation Has Become Elderly 

The willingness to pay for well-dying is rooted in the solid financial strength of this generation. According to The Asia Business Daily's analysis of household financial health data by age group from the Ministry of Data and Statistics' household financial welfare survey, as of last year, households headed by those aged 60 or older had average assets of KRW 906.74 million, and those aged 65 or older had assets of KRW 895.54 million, making them the 'wealthiest' generation among all age groups. This figure far exceeds the average assets of those in their 50s (KRW 769.3 million).

The change is even more pronounced compared to 2017. At that time, those aged 60 or older had average assets of KRW 389.71 million, but the 50-somethings who were affluent a decade ago have now become the 60-somethings, and their asset size has soared. Professor Hong explained, "They are the generation that benefited from the economic growth and real estate boom in the 1980s," adding, "Based on this economic power, there is a strong demand for high-quality premium care services."

Over time, the number of seniors seeking high-quality nursing facilities is expected to increase. Starting in 2030, the second baby boomer generation (born between 1964 and 1974), numbering about 9.54 million, will begin to enter the elderly population in earnest. Their average annual household income is KRW 71.2 million, higher than the KRW 55.64 million of the first baby boomer generation (born 1955–1963). The second baby boomer generation has greater income and assets than the first, giving them higher spending power. Naturally, their desire for independent living and preference for high-quality senior services is also expected to rise further.

"Nursing Facilities Needed When Health Declines"...But Premium Facilities Remain Scarce 

The main problem is the overall quality of nursing facility services in Korea. In general, the quality of elderly nursing home services in Korea lags behind. Service quality tends to be ensured through the supply of large-scale corporations that can achieve economies of scale, but in Korea, small-scale private operators still account for a significant portion of nursing home operations. According to Seoul National University's analysis, as of 2024, 6.4% of residents in elderly nursing facilities were in facilities with a capacity of 10 or fewer, 21.3% were in facilities with 10–29 residents, and 57% were in facilities with 30–99 residents. Only 15.3% stayed in facilities with a capacity of 100 or more.

This is due to the barrier of strict regulations. Under the current Elderly Welfare Act, anyone wishing to establish a nursing facility with a capacity of 30 or more must directly own the land and buildings and operate the facility themselves. In the greater Seoul area, high land prices make entry difficult for all but the most well-capitalized corporations. In contrast, small facilities with fewer than 10 residents are exempt from these regulations. As a result, the domestic nursing facility market is dominated by small-scale operations.

This has led to ongoing calls to ease regulations on nursing facilities with a capacity of 30 or more. However, the Ministry of Health and Welfare, which has jurisdiction over the sector, remains concerned about possible side effects of deregulation. Lim Eulgi, director of elderly policy at the Ministry of Health and Welfare, said, "In the past, there have been cases where nursing facility operators disappeared with the elderly residents' deposits and shut down the business," adding, "If regulations are loosened, anxiety among nursing facility residents could increase."

Scenes of Seocho Village (nursing facility) by KB Golden Life Care / KB Golden Life Care website

The Financial Sector Overcomes Market Distrust with Strong Brand Credibility

This 'trust gap' has prompted major financial holding companies to set their sights on the nursing home market. With their immense capital strength, they can directly purchase land to ensure operational stability, and the rigorous internal control systems characteristic of the financial sector are emerging as the 'optimal alternative' to resolve distrust in nursing services.

Indeed, according to a survey by the Hana Institute of Finance, 54.4% of elderly respondents expressed concerns about possible human rights violations or abuse when entering a nursing facility. Other major concerns included disconnection from family and society (40.2%) and restrictions on self-determination (36.3%). Financial holding companies, acutely aware of reputational risk, are focusing on these issues. A financial industry official said, "Financial companies already handle personal information and assets and have implemented the highest standards of ethics and security. If these standards are applied to nursing services by eliminating blind spots in CCTV coverage and providing standardized care manuals, institutional safeguards against human rights issues can be established for residents."

At the same time, financial companies are securing key urban locations to address the problem of 'social isolation.' Premium urban facilities make it easy for families to visit frequently, helping to reduce loneliness in old age. In the same survey, seniors' preference for premium facilities (61.9%) was higher than for general nursing homes (53.0%), reflecting their expectations for the 'brand trust' and 'high-quality services' offered by financial institutions.

Most financial holding companies that are just entering the nursing care business are starting their business portfolios by building and operating premium facilities on urban sites that they have secured. KB Financial Group, which launched the industry’s first senior-exclusive brand, 'KB Golden Life,' in 2012, is considered the most active in supplying premium nursing facilities. Shinhan Financial Group also opened a premium nursing facility in January this year. Hana Financial Group is preparing to open a facility after purchasing a site, while Samsung Life Insurance launched its subsidiary, Samsung Noble Life, and acquired the premium senior community 'Samsung Noble County,' which has been operated by the Samsung Life Public Welfare Foundation for 25 years. An industry official said, "When choosing a nursing facility, brand credibility is important, and it is rare to find a company with as strong and familiar a reputation as financial holding companies. Now that the baby boomer generation is entering the senior population in earnest, this is becoming a major turning point in the senior services market, driven by brand trust."

This content was produced with the assistance of AI translation services.