Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
Financial groups eye older adult nursing care as next growth engine
The interior view of "KB Pyeongchang County," a nursing home for retirees run by KB Life Insurance / KB Life Insurance
By Yi Whan-woo
Financial holding companies are eyeing the nursing care industry for older adults as the next growth engine, as Korea has become a super-aged society, according to industry officials Monday.
The nursing care market targeting older adults, including retirees, is forecast to expand from 72 trillion won ($49.61 billion) in 2020 to 168 trillion won in 2030.
The growing interest in the business comes as more than 20 percent of Korea’s entire population accounts for those aged 65 or older as of 2024. By 2072, the proportion of older adults is estimated to reach 47.7 percent.
The nursing care sector is considered especially lucrative, as older individuals require more medical attention and related health services.
The industry grew at an average of 15.6 percent per year — from 8 trillion won in 2018 to 14.4 trillion won in 2022 — with the number of customers increasing from 1.03 million to 1.67 million over the same period.
Hana Financial Group was the first financial holding company to link its decades of expertise in financial services with nursing care.
Hana Bank executives pose with with TV personality Kang Ho-dong, third from right, at the launching ceremony of “HANA THE NEXT," Hana Financial Group's older adult-focused services brand at at the bank's headquarters in Seoul in this October 2024 file photo. Courtesy of Hana Financial Group
The country’s third-largest financial group launched its HANA THE NEXT brand in 2024, which is aimed at comprehensive life-care services for older adults as well as those nearing retirement.
The services range from retirement planning, inheritance, health management and more.
Also, in 2024, the company launched new target-date fund trusts and exchange-traded fund products to improve customers’ cash flow after retirement, plus an insurance product to help care for those suffering from dementia.
Additionally, its Hana Family Office One Solution, a consultation service consisting of 60 experts, offers consultations on topics ranging from asset management and overseas investment to tax and inheritance of family businesses.
The group opened its first HANA THE NEXT lounge at Hana Bank's central Seoul branch, where its consultants offer retiree-tailored services.
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Other financial groups are also capitalizing on their insurance affiliates to expand into the nursing care market.
The country’s No. 1 financial holding company, KB Financial Group, has been operating three “silver towns,” or communities specifically designed for retirees, since 2024.
One of the three, KB Pyeongchang County, is managed by KB Life Insurance in Seoul’s Jongno District.
The community consists of more than 160 homes for older adults, either singles or couples.
Two floors are devoted entirely to community facilities, such as a dining hall, gym, sauna and spa, medical services, cafe and lounge for leisure activities.
The community captured consumers’ attention, and around half of the rooms were reserved even before its official opening, according to KB Financial.
“We took a very small step in the nursing care industry and will work harder to improve quality of services while reducing the cost burden for individuals,” a KB PR official said.
Shinhan Life, the insurance arm of Shinhan Financial Group, opened its first nursing home in Seongnam, Gyeonggi Province, in 2024.
The facility is noted for hiring a range of professionals, including social workers, nutritionists and nurses who are ready to serve clients around the clock.
Shinhan Life additionally plans to open its first older adult welfare housing complex in Seoul’s Eunpyeong District by 2027 and further expand the business to other parts of the capital and the suburbs.
Operated by NongHyup Financial Group, NongHyup Life Insurance said it launched a new business team for nursing under the company’s management and planning department.
Asked about possible measures to speed up the growth of nursing care sectors, a financial industry official, who spoke on condition of anonymity, urged the financial regulators to “ease regulations that block financial firms to enter the commerce sector in the middle of blurring business boundaries.”