Expanding Footsteps into the Silver Industry by the Education Sector

[Evolution of Care②] Daekyo, Kyowon, and Others Expand Brands Targeting Adults

Grandmother Lee Jeong-hae is painting a picture to submit her work to the National Adult Literacy Education Poetry and Painting Exhibition.

[Asia Economy Reporter Donghyun Choi] Education companies specializing in early childhood and elementary learning materials such as 'Noonnoppi' and 'Kumon' are expanding their reach into the silver tech sector. This strategy aims to find new growth opportunities amid declining school-age populations due to low birth rates and the imminent entry into a super-aged society.

Daekyo, which owns the learning brand 'Noonnoppi,' is the most proactive in the silver tech business. Established in 1986, Daekyo launched 'Daekyo NewEve' in January last year. This is an educational brand that applies Daekyo's decades of educational expertise to senior services. It is a new business introduced one year after Kang Hojun, the eldest son of Daekyo Group Chairman Kang Youngjoong and a management leader, took office as CEO. The plan is to cover seniors in addition to existing services for infants, elementary, middle, high school, and adults.

Daekyo NewEve offers a wide range of services covering the overall lives of the elderly, from long-term care insurance services such as daycare centers and home care to operating caregiver training centers, nurturing and dispatching professional instructors, and developing cognitive enhancement content. For daycare centers, starting with the first branch, Gwangmyeong Center, in January last year, they have opened nationwide bases up to the fifth branch, Ulsan Center. Home care centers opened Boramae and Bundang centers last year and are preparing to open the third branch, Changwon Center, this year. Caregiver training centers operate in Boramae, Changwon, and Bundang.

At the end of last month, Daekyo also launched a senior healthcare business in collaboration with Naver. They integrated Daekyo's senior cognitive care content into Naver's AI care system 'Clova Care Call' to provide cognitive health care services such as checking on the elderly and dementia prevention. A Daekyo official said, "This year, we plan to recruit professionals to stabilize the long-term care business and activate the franchise business. We will create various content to help seniors maintain a healthy daily life and expand collaboration with affiliated companies."

Kyowon, which owns 'Kumon' and 'Red Pen,' is also gradually expanding its senior business. The main focus is on the travel industry. In 2020, they launched 'Travel Daum,' a senior-specialized travel brand. This service includes a 'storyteller' with a travel certification accompanying the trip to enhance understanding of the destination. It is designed as a senior-customized service that eliminates mandatory tips and unnecessary shopping, allowing travelers to focus solely on the trip. Kyowon has enhanced the Travel Daum service by acquiring KRT Travel Agency (now Kyowon Tour) in 2021.

Kumon is also gradually shedding its image as a learning material exclusively for children through its 'Adult Kumon' service. Adult Kumon offers learning in English, Chinese, Japanese, and Chinese characters through home visits, video calls, and self-study. Office workers after work and retired seniors share their Kumon reviews on social networking services (SNS). Many say they have regained childhood memories and found new vitality in life. Last year, the number of Adult Kumon members increased by 63% compared to 2021. Among them, members aged 50 and over account for 12%. A Kyowon official said, "We are diversifying our review to expand senior-targeted businesses in various sectors, including travel, education, and lifestyle culture."

The interest of these companies in silver tech is closely related to demographic changes. The school-age population in South Korea, which was 9.59 million in 2012, decreased by 2.11 million over ten years to 7.48 million last year. The elderly population aged 65 and over exceeded 9 million for the first time last year, accounting for 17.5% (about 9.01 million) of the total population. By 2025, this proportion is expected to exceed 20%, entering a 'super-aged society.' According to the Korea Health Industry Development Institute, based on this trend, the domestic silver industry is expected to grow from 72 trillion won in 2020 to 168 trillion won by 2030.