[Life Chapter 3 Companies] Senior Care Including Hospital Accompaniment and IT Device Training... App 'Iuthada'

Hanye Ryeon, CEO of Iuthada

Social enterprise 'Iuthada' CEO Han Hyeryeon. Photo by Heo Younghan younghan@

By the year after next, South Korea will enter a super-aged society. This means that 20% of the population will be over 65 years old. It also implies a rapid increase in the number of dependents supported by one working-age person. By 2065, South Korea's total dependency ratio is expected to soar to the highest level among OECD (Organisation for Economic Co-operation and Development) countries.

Although the burden of supporting the elderly is increasing, the perception that this responsibility belongs to the family is disappearing. According to the "2022 Korea Welfare Panel Survey and Analysis Report" by the Korea Institute for Health and Social Affairs, the proportion of people who believe that "the responsibility to support elderly parents lies with the children" has dropped to 21.39%, less than half compared to 15 years ago (53%). In our society, conflicts frequently arise among siblings over the responsibility of caring for parents, often leading to estrangement. As a result, many elderly people are neglected. This is also related to the annual increase in elderly people dying alone.

‘Iuthada’ is a companion and care service matching company created to address these social issues. On the 10th, we met Han Hyeryeon, CEO (44), at the office in Mapo-gu, Seoul. She said, “I started this business with the desire to create a ‘social safety net’ that I and my family could trust and rely on when care is needed,” adding, “Especially in our society, where conflicts over sharing caregiving roles among family members are frequent, I want to play a key role in finding solutions.”

The following is a Q&A.

- What kind of work does ‘Iuthada’ do?

▲ We operate a service that matches care seekers with providers. Those in need of care and care providers called ‘neighbor teachers’ can mutually view each other's information and exchange messages through an application, enabling connection via a matching platform. Teachers set the hourly wage they want to receive, and seekers set the amount they want to pay, both above the minimum wage. Negotiations are also possible. After a renewal in June this year, we now offer services including hospital accompaniment, daily life companionship, and one-on-one kiosk education.

- What inspired you to create a care service matching platform?

▲ It stemmed from personal experience. I helped my parents, relatives, and for several years, my maternal grandmother with outpatient visits and hospital care. Whenever there was a hospital appointment, we took turns acting as guardians, but even with several relatives, coordinating schedules was difficult. So, I thought there was a need for a service that connects people who can go on behalf of others, even if they are not family. That business model led to the founding of the company in 2019.

- The COVID-19 pandemic broke out the following year.

▲ Because of that, the full-scale service launch was only possible at the end of 2021. Until then, we focused more on usability testing, consulting, legal review, and app/service development, and I also obtained a care worker certification. At that time, we also created and operated a menu called ‘vaccine accompaniment.’

- You are gradually expanding the business.

▲ Originally, the majority of our services were hospital accompaniment matching for seniors, but those needing help are not only elderly. We continue to discover service targets and corresponding businesses. For example, among the app menus, there is ‘interpretation accompaniment’ for multicultural families. This service was created for marriage immigrant women who need to apply for visa extensions or attend parent-teacher meetings. Although the government provides interpretation support, supply is not always smooth. There is a niche demand. Interest in kiosk education is also rising recently. As unmanned ice cream shops and convenience stores without staff become more common, those unfamiliar with machines find them difficult to use. We believe this contributes somewhat to helping seniors overcome digital exclusion.

- It must be difficult for seniors to apply directly using a mobile app.

▲ We allow guardians to register on their behalf. When selecting the desired care service content, gender, age group, etc., the system matches an appropriate teacher. A list of teachers registered to work in the area where the seeker signed up appears. Teachers can register up to three neighborhoods where they can operate.

- Are there many seniors registering as neighbor teachers?

▲ People in their 50s are definitely more numerous than other age groups. Some are interested in care-related certifications or plan to open daycare centers or small care facilities and register as teachers to gain experience. Many who have obtained care worker certifications after retirement want to work but find full-time employment at facilities burdensome. Flexible working hours are an advantage.

- It has been about 1 year and 6 months since the service officially started. How many users are there?

▲ There are about 1,600 to 1,700 total members. Considering that we hardly spend on SNS advertising, I think this is quite a large number. Membership has grown through word of mouth. Among them, 60% are providers (neighbor teachers), and 40% are seekers.

- What is the user feedback like?

▲ A feature of our service is that seekers can call providers directly without waiting for a message reply. Users feel relieved just knowing they can connect immediately without waiting for help. Also, once connected, intimacy and trust quickly develop, leading to a high rate of repeated companionship.

- What about the revenue model and future plans?

▲ Users can apply once a day for free, and after six applications, they pay 15,000 KRW in fees. However, since the app was recently renewed and we are in the early stage of recruiting more users, we are currently giving out many free application rights. We will soon launch premium services, including packages that support both care and transportation. We are also planning commerce businesses distributing mobility aids like canes and wheelchairs, consumables like diapers, and specialized care education. Next year, we will put more effort into user acquisition for investment attraction.