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Despite the cost approaching 4 million won per month, nearly 500 people are on the waiting list for admission to premium nursing facilities. Unlike traditional nursing homes, which have been operated mainly with government subsidies, a new ‘premium’ nursing care market is emerging, emphasizing high-quality services. As major financial holding companies with significant capital strength are entering the large-scale premium nursing care business in earnest, changes are being detected in the domestic nursing care market, which has long been centered on small private operators.

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

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"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 among our staff, when describing new residents, we say 'an elder is moving in'. Nowhere in the facility will you find the word 'nursing home.'"

On March 17, at KB Golden Life Care's premium nursing facility 'Gangdong Village' in Gangdong-gu, Seoul, Facility Director Jin Hyunhwa described the village in these terms. Indeed, the word 'nursing home' could not be found anywhere inside. Jin explained, "Even when it came to the beds, we carefully selected a premium brand costing nearly 3 million won each," adding, "We focused on enabling elderly residents to spend their final days in a living space that truly feels like home."

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

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The atmosphere inside the facility was notably different from that of typical nursing homes. The building, located next to a quiet, large apartment complex, had a clean and cozy exterior reminiscent of an ordinary house. The interior was also bright and orderly, far from the dark and closed-off image commonly associated with nursing homes. It is also conveniently located, about a 10-minute ride by village bus from Sangil-dong Station on Subway Line 5.

Gangdong Village is a premium nursing facility opened by KB Golden Life Care in November last year. It is the fifth such facility, following Wirye (2019), Seocho (2021), Eunpyeong (2025), and Gwanggyo (2025). Reflecting strong demand for its existing facilities, KB is continuing to expand its presence in urban locations with good accessibility. Currently, each facility has a waiting list of around 500 people. Director Jin noted, "Seocho and Wirye are especially at full capacity," adding, "Recently, guardians in the Gangnam area who couldn't apply for those facilities have been turning to Gangdong Village." All 48 single rooms at Gangdong Village were fully booked within just three months of opening. Including double rooms, the total capacity is 144 residents.

Because KB Financial Group directly purchased the land and constructed the facility, Gangdong Village was designed from the very beginning as an elderly-friendly space. The seven-story building, from the basement to the rooftop, features a physical therapy room on every floor from the 2nd to the 5th, each staffed with its own physical therapist. This is unusual for standard nursing homes, which rarely have dedicated therapy rooms on each floor. KB Financial Group explained that this structure was designed to minimize the risk of falls that could occur when moving between floors.

The interior bed of Gangdong Village, a premium nursing facility operated by KB Golden Life Care located in Gangdong-gu, Seoul. A system to prevent falls is installed. Photo by Eunju Lee

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The facility also stands out for its Internet of Things (IoT)-based safety system. Emergency bells are installed throughout bedrooms and bathrooms, and the beds are equipped with fall-prevention devices and motion detection systems. If there is no movement detected for a certain period during sleep, an alarm immediately goes off. Staffing is also different from typical nursing homes. As of this visit, there were 89 residents and 103 staff members, meaning there are more staff than residents—a design intended to increase the quality and intensity of care. All nursing staff are registered nurses, not nursing assistants. Given this high level of service, the costs are also high. Under the Long-Term Care Insurance Act, nursing facilities do not take deposits but instead charge monthly fees; the personal cost for a single room is around 3.8 to 3.9 million won. This facility is a representative example of how corporate, capital-backed premium nursing homes are setting new standards in the industry.

An interior view of "SOLACHE Home Misa," opened by Shinhan Lifecare in January this year at Hanam Miso. Screenshot from Shinhan Financial Group website

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Recently, not only KB but also Shinhan, Hana, and Samsung have been entering the senior housing and care market with various strategies, expanding their business models.

Shinhan Financial Group, through its subsidiary Shinhan Lifecare, opened the premium facility 'SOLACHE Home Misa' in Hanam Miso this January, accommodating 64 residents. The facility specializes in emotional care programs, such as psychological counseling and dementia prevention. It has notably introduced a 'customized meal plan' service, providing personalized menus based on each resident's health and nutritional needs. According to Shinhan Financial Group, "Our top priority was to differentiate the programs for psychological and emotional stability of the residents." The monthly personal fee for a single room is in the 4 million won range.

In addition, Shinhan is not limiting itself to premium facilities but is also building a diverse portfolio of services at various price points and types. This is part of a long-term plan to establish a strong presence in the senior care market by accumulating broad operational capabilities. For example, two years ago the company opened a daycare center in Imae-dong, Bundang, and is currently working on developing silver towns (residential complexes for seniors) in Eunpyeong and Wirye. A Shinhan Financial Group representative said, "We plan to build a comprehensive lineup, from premium nursing homes to daycare centers and silver towns," adding, "We will also continue to develop regional hub facilities, including in Haeundae, Busan."

Perspective rendering of the 'Jichuk-dong Elderly Care Facility' scheduled to open in September 2027 by Hanadone Next Lifecare. Hanadone Next Lifecare website.

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Hana Financial Group is just now beginning its venture into the premium nursing care business. The company established its subsidiary Hanadone Next Lifecare last year. It purchased a site of about 1,693 square meters in Jichuk-dong, Goyang for 1.5 billion won, and is preparing to open a facility with a capacity of around 150 residents. A Hana Financial Group representative explained, "We entered this business as a new venture to offer life care services that combine financial and non-financial offerings." While operations have not yet begun, there are plans to expand beyond simple nursing care into a comprehensive group-level senior service.

View of 'Samsung Noble County' located in Yongin, Gyeonggi Province. Samsung Noble County official website.

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Samsung, which has an insurance affiliate, is also providing high-quality, premium services. Last year, Samsung Life Insurance launched its subsidiary Samsung Noble Life and acquired the premium silver town 'Samsung Noble County,' previously operated by the Samsung Welfare Foundation. Samsung invested 422.5 billion won, including real estate rights such as land and buildings for Noble County. Noble County is a luxury senior residence open to anyone aged 60 or older, requiring both a deposit and a monthly service fee. The deposit for a single room is up to 1.43 billion won, and the monthly fee is about 410,000 won. The standard contract period is three years. The facility features amenities like 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 aimed at high quality, which means the prices are also high. The personal share, excluding government subsidies, is around 4 million won per month. In contrast, general nursing homes operated by individual business owners require much less out-of-pocket payment from users. The government supports about 1.5 to 1.9 million won per month through long-term care insurance, and most nursing homes rely heavily on this government funding for operations. This means facilities are run with government support rather than being financially self-sufficient, which also explains why common spaces and rehabilitation/health support facilities are often lacking. A man in his 50s (Mr. A), looking for a nursing home for his parents in their 80s, said after touring several general facilities, "It was hard to shake the impression that these places were simply where people lay down and waited to die," adding, "If I were financially able, of course I would want to send my parents to a luxury facility."

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However, despite the high prices, financial holding companies expect it will take considerable time before the elderly care business can be converted into a structure that generates stable net profits. This is primarily because the initial investment costs are extremely high, especially since they must directly purchase land for nursing facilities. Achieving economies of scale is essential to turning a profit, but most businesses are still in the early stages. An insurance company representative noted, "When the time comes that we’ve invested in more infrastructure and are operating dozens of facilities, that will be the point when we can start seeing clear profits."

Nonetheless, the reason financial holding companies are entering this market is to enhance customer loyalty and achieve the 'lock-in effect,' rather than seeking immediate returns. By linking asset management, pensions, inheritance, and nursing care, they can secure customers for decades. For example, KB Financial Group provides insurance services and inheritance/retirement consultations at its Golden Life Center in Yeoksam, Seoul, while also introducing its lineup of nursing facilities. The center even has a model single room on display for interested customers and arranges tours of the village. The industry sees this as a strategy to expand customer touchpoints to senior care. An insurance industry official commented, "Finance and customers have grown together through the era of industrialization," adding, "The aim now is to go beyond simply paying death benefits, to providing care through the final stages of life."