Despite a 4 Million Won Monthly Fee, 500 on the Waiting List: "Did Kim Move In There Too? They Say It Feels Just Like Home" [Financial Planning for Well-Dying]②

Financial Holding Companies Scale Up the Premium Care Market

Shortage of Premium Facilities Leads to Long Waiting Lists

Hundreds Wait for a Spot at Each Facility

Rising Demand for High-End Elder Care Drives Financial Institutions into

Despite monthly costs approaching 4 million won, there are nearly 500 people on the waiting list for premium nursing facilities. Unlike traditional facilities, which have been primarily operated with national subsidies, a new market for 'premium' nursing homes boasting high-quality services has begun to form. As financial holding companies with strong capital resources enter the large-scale premium nursing facility business, changes are being detected in the domestic nursing care market, which has so far been centered around individual operators.

The exterior of KB Golden Life Care premium nursing facility 'Gangdong Village' located in Gangdong-gu, Seoul. Photo by Lee Eunju

"It Should Feel Like Home, Not a Nursing Facility"... Visiting KB Gangdong Village

"We never use the word 'nursing home.' The core of our service is to make residents feel as if they are in their own home, not in an institution. Even internally, when describing new residents, we say, 'An elderly person is moving in.' You won't find the word 'nursing home' anywhere in our facility."

On March 17, at 'Gangdong Village,' KB Golden Life Care's premium nursing facility located in Gangdong-gu, Seoul, Facility Manager Jin Hyunhwa described the village in this way. Indeed, there was no sign of the word 'nursing home' anywhere inside. Jin explained, "We carefully selected even the beds from premium brands costing almost 3 million won each," adding, "We focused on allowing elderly residents to spend the final stage of their lives in an environment that feels like their own home."

The atmosphere inside the facility was also distinctly different from that of typical nursing homes. The building, located next to a quiet large apartment complex, looked neat and cozy from the outside, much like a regular house. The interior was also bright and well-organized, far from the dark and closed-off image often associated with nursing facilities. It is about 10 minutes away by community bus from Sangil-dong Station on Subway Line 5, making it reasonably accessible.

Gangdong Village is a premium nursing facility opened by KB Golden Life Care in November last year. It is the fifth facility following Wirye (2019), Seocho (2021), Eunpyeong (2025), and Gwanggyo (2025). Reflecting the high demand for its existing facilities, KB is continuing to expand, focusing on locations within the city with good accessibility. Currently, there are about 500 people on the waiting list for each facility. Jin noted, "In particular, Seocho and Wirye are completely full," and added, "Recently, guardians from the Gangnam area who could not apply for those facilities have been choosing Gangdong Village." Within just three months of opening, all 48 single rooms at Gangdong Village were occupied. Including double rooms, the facility has a total capacity of 144 residents.

Interior view of Gangdong Village, a premium nursing facility by KB Golden Life Care located in Gangdong-gu, Seoul. Photo by Eunju Lee

Gangdong Village was designed as an elder-friendly space from the initial stages of construction, with KB Financial Group directly purchasing the land and building the facility. The building consists of seven floors from the basement to the rooftop, and every floor from the 2nd to the 5th has its own physical therapy room staffed by dedicated therapists. It is rare for a typical nursing facility to have separate therapy rooms on each floor. KB Financial Group explained that this structure was designed to minimize the risk of falls when moving between floors.

The facility is also equipped with an Internet of Things (IoT)-based safety system. Emergency bells are installed throughout bedrooms and bathrooms, and beds are fitted with fall prevention devices and motion detection systems. If no movement is detected for a certain period during sleep, an alarm is triggered immediately. Staffing levels are also different from standard nursing homes. As of this day, there were 89 residents and 103 staff members, meaning there are more staff than residents to ensure a high level of care. All nursing staff are registered nurses, not nursing assistants. Reflecting the high service quality, the costs are also high. According to the Elderly Long-Term Care Insurance Act, nursing homes charge a monthly fee without requiring a deposit; the out-of-pocket cost for a single room is about 3.8 to 3.9 million won. This facility serves as a representative example of the direction pursued by corporate-run premium nursing homes leveraging capital strength.

Premium care facility "Gangdong Village" beds inside KB Golden Life Care located in Gangdong-gu, Seoul. A system to prevent falls is installed. Photo by Lee Eunju

Shinhan Offers Daycare and Silver Towns, Hana Aims for Comprehensive Life Care

Recently, not only KB but also Shinhan, Hana, and Samsung have entered the senior housing and care market, each with different strategies, thereby expanding their business models.

Shinhan Financial Group, through its subsidiary Shinhan Lifecare, opened the 64-resident premium nursing facility 'Solrachae Home Misa' in Hanam Miso this January. Its strength lies in specialized emotional care programs, such as psychological counseling and dementia prevention. In particular, it has introduced a 'customized meal plan' service that provides different menus tailored to the health and nutrition status of each resident. A Shinhan Financial Group representative explained, "We placed the greatest emphasis on differentiating our programs for residents' psychological and emotional stability." The out-of-pocket cost for a single room is in the 4 million won range.

In addition to premium facilities, Shinhan is also working to build a diverse service portfolio across various price ranges and types. The goal is to accumulate broad operational capabilities for a long-term presence in the senior care market. In fact, two years ago, it opened a 'daycare center'—a day care service—in Imae-dong, Bundang, and is currently developing Silver Towns (residential spaces) in Eunpyeong and Wirye. A Shinhan Financial Group representative stated, "We plan to establish a comprehensive service lineup, from premium nursing homes to daycare centers and Silver Towns," adding, "We will also continue to develop regional hub nursing facilities in places like Haeundae, Busan."

Hana Financial Group is just beginning to enter the premium nursing facility business. Last year, Hana established its subsidiary, Hana The Next Life Care. It purchased a site of about 1,692 square meters in Jichuk-dong, Goyang-si for 15 billion won and is preparing to open a facility with a capacity of about 150 people. A Hana Financial Group representative explained, "We entered this field as a new business to provide life care services that combine financial and non-financial offerings." Operations have not yet begun, but the group is planning to expand beyond simple nursing facilities to comprehensive senior services at the group level.

The interior view of 'Solrachae Home Misa,' opened by Shinhan Lifecare in January this year in Hanam Miso. Screenshot from Shinhan Financial Group website

Samsung Operates 'Luxury-Type' Silver Town... Monthly Deposit Up to 1.43 Billion Won

Samsung, which has insurance affiliates, is also focusing on high-quality, premium services. Last year, Samsung Life Insurance established its subsidiary Samsung Noble Life and acquired the premium Silver Town 'Samsung Noble County,' previously operated by the Samsung Foundation of Culture. Samsung invested 422.5 billion won, including real estate rights such as the land and building of Noble County. Noble County is a luxury-type Silver Town that accepts residents aged 60 or older, charging both a deposit and a monthly fee. The deposit for a single room can be as high as 1.43 billion won, with the monthly fee at about 410,000 won. The standard contract period is three years. The facility features a swimming pool, fitness center, and golf facilities, and is designed to share spaces with the local community.

The nursing services provided by financial holding companies and Samsung are generally of high quality, and the prices are accordingly high. In addition to national subsidies, the individual out-of-pocket expense can reach the 4 million won range. In contrast, for general nursing facilities operated by individual business owners, the user’s share is not so high. The government provides about 1.5 to 1.9 million won in support through long-term care insurance, and most facilities rely heavily on these subsidies to operate. This means that, rather than generating sufficient profits on their own, most facilities run on government support. This is also why common areas and rehabilitation or health support facilities are often insufficiently equipped. A person in their 50s, surnamed A, who is searching for a nursing facility for their parents in their 80s, said after visiting several standard facilities, "It was hard to shake off the impression that these are places where you just lie down and wait to die," adding, "If I had enough financial resources, it would be natural to want to send my parents to a luxury facility."

However, despite the high prices, financial holding companies expect it will take considerable time to turn the elderly care business into a structure with stable net profit. This is primarily because nursing facilities require very high initial investment costs, such as direct land purchases. Achieving economies of scale is necessary to generate profit, but most businesses are still in the early stages. An insurance company representative commented, "As time passes and more infrastructure is invested, and we reach a stage where we operate dozens of facilities, the time will come when we can reliably turn a profit."

Nonetheless, the reason financial holding companies have entered this market is to enhance customer loyalty and achieve a 'lock-in effect' for group affiliates, rather than short-term profits. By linking asset management, pensions, inheritance, and nursing services, they can secure customers for decades. For example, KB Financial Group provides insurance services and inheritance and retirement consultations at its Golden Life Center in Yeoksam, Seoul, and also introduces its lineup of nursing facilities. The center features a single-room model, and interested customers are guided to the village. The industry sees this as a strategy to extend customer touchpoints into elderly care. An insurance industry official said, "As we passed through the industrialization era, both finance and customers have grown together," adding, "This also signifies a commitment to providing care throughout the final stages of life, beyond just paying death benefits."

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