[Life Chapter 3 Companies] "New Standards for Elderly Housing Facilities"... The Ambition of 'Shinhan Lifecare'

Wooseok Moon, CEO of Shinhan Lifecare

Shinhan Life, a life insurance company affiliated with Shinhan Financial Group, has launched a subsidiary dedicated to the senior business and has entered the elderly welfare facility sector. The healthcare subsidiary 'Shinhan Cube On' was renamed 'Shinhan Life Care' at the end of last month, and plans to establish a senior day and night care service center (daycare center) in Seoul in the second half of this year.

On the 13th, at Shinhan L Tower in Jung-gu, Seoul, Woo Seok-moon, CEO of Shinhan Life Care, said, "Considering that South Korea is ranked first in the world in the speed of aging, the senior business is expected to have high growth potential in the future. Accordingly, Shinhan Life launched Shinhan Life Care to support the stable retirement life of the senior generation and to fulfill the company's social responsibility."

He explained, "Many companies are already preparing or promoting senior-targeted businesses in various ways. Shinhan Life is also promoting the senior business to discover growth engines linked to its core insurance business and to build a senior business ecosystem at the group level."

Along with this, based on experience in establishing long-term care facilities, Shinhan Financial Group plans to collaborate among its affiliates to create a silver town that encompasses not only physical residential environments but also daily life support services such as ▲financial services ▲culture and arts ▲leisure sports ▲medical and healthcare, thereby setting a new standard for elderly residential welfare facilities.

Shinhan Financial Group Shinhan Life Care CEO Woo Seok-moon. Photo by Heo Young-han

- Please explain the background and preparation process for the launch of Shinhan Life Care.

▲ In 2021, Shinhan Life formed a task force (TF) to conduct domestic and international market research and feasibility studies. Last year, aiming for full-scale business promotion, we prepared various aspects such as manpower and permits. Despite the instability in the real estate market last year, securing business sites in Hanam Misa and Eunpyeong gave us momentum, and under the goal of establishing a senior-specialized flagship brand, we launched as an independent corporation.

- You announced a master plan at the launch ceremony. What does it entail?

▲ The senior business Shinhan Life Care aims to promote is to secure senior care expertise by entering the nursing and residential business. As a short-term execution strategy, the nursing and residential facilities we plan to establish will target relatively frail late-stage elderly. We intend to operate silver towns as residential facilities that meet individual needs, nursing facilities for those requiring care, and daycare centers, establishing a system linking facilities and services according to health status.

The initial facilities will be premium facilities located in urban areas, providing high-quality infrastructure and services. We are currently working to establish the first daycare center in the second half of this year, and plan to open the first nursing facility in Hanam Misa in 2025. As we operate the daycare center and accumulate caregiving capabilities, we expect to manage the nursing facility opening next year more smoothly.

In particular, we plan to provide meticulous care by increasing the number of legal nursing staff beyond the required minimum. We plan to open at least one facility every year until 2028. Additionally, we will review and implement the optimal facility expansion model reflecting market conditions and regulatory situations.

- You have completed the purchase of the site for the elderly nursing facility aimed to open in 2025. Please share the reasons for site selection and the differentiating factors of Shinhan Life Care’s elderly nursing facilities.

▲ The site targeted for the 2025 opening is located in the Hanam Misa district. Last year, we established internal guidelines for securing the business site. First, we sought locations with easy access to large hospitals to facilitate medical linkage. Second, we focused on clean residential districts with abundant infrastructure. The Hanam Misa site meets these conditions, and by providing high-quality services here, we aim to contribute to improving the health and alleviating symptoms of resident seniors, as well as meeting the expectations of their families.

Currently, we are focusing on differentiating the hardware aspects. The Hanam Misa first branch will be an urban-type nursing facility accommodating 60 to 70 residents. We are striving to design a facility where residents can live comfortably and staff can focus on elderly care. Once full-scale operational preparations begin, we will concentrate on differentiating software aspects such as services, programs, and systems.

- Do you have any short- and long-term goals for future senior-related businesses?

▲ The short-term execution strategy aims to establish one daycare center and four nursing and residential business sites by 2028. After securing senior care expertise through facility operations, we want to expand facilities nationwide and continuously develop group collaboration models to establish ourselves as a management brand covering senior lifestyle management and financial services. Our mid- to long-term goal is to realize 'Senior Total Life Care.'