[Senior Trend] A Clue to Solving Population Issues, Startups

These days, a new trend is emerging in the senior business sector: the active entry of young startups. The term ‘startup’ has various definitions, but it originated in Silicon Valley, USA, referring to newly established venture companies. Typically, startups possess innovative technologies and ideas, aiming to create new value that did not previously exist and to achieve rapid growth. Seniors and startups may seem like an unlikely combination at first glance. However, since startups excel at identifying difficult problems and solving them with technology or unique perspectives, this might be a natural wave. Already, a wave of change is expected in the senior industry due to startups.

Since 2021, as the CEO of Third Age, I have participated in numerous senior forums and seminars covering aging, population issues, and well-aging. I have also conducted research on the correlation between middle-aged job opportunities and health issues in collaboration with Yonsei University. Each time, I noticed that most participants were heavily skewed toward the 50s and 60s age group, and the topics mainly focused on caregiving. It felt like hearing the same stories repeatedly from the same speakers. Although there were claims about what the government should do, solutions regarding securing necessary funding or effectiveness were insufficient and disappointing. The private sector needs to create cases to prompt public action, but there was little initiative to take proactive steps. Senior issues exist, but solutions seemed like hollow echoes or like going around in circles on a remote island. The serious generational conflict meant that words preceded actions, or that two-way communication was lacking, resulting in no real exchange.

Could the entry of startups into the senior sector make a difference? Last week, I attended a population innovation forum hosted by Bluepoint, a venture capital (VC) firm. The theme was ‘Startups as a clue to solving population problems.’ From the start, there was a strong consensus. It was emphasized that this is not just a senior issue but a problem for everyone, and customer-centric research results approached from an entrepreneurial spirit were shared. Four opportunity areas where startups should focus were presented first: well-aging, sustainable income, local communities, and caregiving. Although the aging population problem is large, serious, and difficult, adopting an innovator’s attitude by applying technology to improve efficiency in hard-to-monetize areas and solving problems through collaboration rather than alone was highlighted. Honestly, there is no sharp answer yet. However, the fresh approach suggested that if more than 10,000 startups dive into subdivided population innovation issues, change could be created. The event concluded with five relevant startups introducing their business models. Particularly impressive was that young people and middle-aged individuals sat together and participated in the event.

Moreover, the largest startup foundation in Korea, D.CAMP (Banking Sector Youth Startup Foundation), cannot be overlooked. It connects the three major elements of the startup ecosystem: ‘investment for the future,’ ‘spaces that support growth,’ and ‘connections between the world and local communities,’ conducting various startup support activities. From 2020 to 2021, it operated a senior-startup linked education program called ‘Mentern (Mentor + Intern) Salon.’ This year, it selected global connections in fields where seniors can apply their knowledge and experience like the movie The Intern and launched the ‘K-Expert’ program. It has also invested in senior startups such as ‘Hi’ (digital therapeutics for dementia and mental health improvement) and ‘LiveLively’ (senior-customized healthcare), providing space support, mentoring, and nurturing programs.

Meanwhile, the number of Gen Z youths participating in senior-related communities and small group activities is increasing. When asked why they are interested in senior issues, various reasons emerge: some grew up with grandparents due to busy dual-income parents and want to help with the difficulties their elders face; others see it as the largest market and seek business opportunities; some want to prepare early for aging. The trends of ‘Halmanial’ (grandmother + millennial generation) and ‘Granny-chic’ could be felt.

Professor Cho Young-tae, a demographer at Seoul National University, presents the concept of population dividends (the phenomenon where resources invested in the population pay dividends in the future) in his new book Predetermined Future, Market Opportunities. If population is viewed not as a ‘problem’ but from a positive perspective, it is possible to discover unique domestic and international markets with potential within the predetermined changes. Since policy and institutional changes are often slower than changes on the ground, startups that can respond quickly are expected to create results and cases beyond expectations.

‘Predetermined future’ does not mean despair but active preparation. I have a good feeling that a great wave of change will come to the senior business sector with the entry of startups.

Lee Boram, CEO of Third Age