[Korea-Japan Comparison]⑧ "To Grow the Silver Industry, Regulations Must Be Lifted First"

[The Era of 10 Million Elderly, Learning from Japan]⑧
Interview with Noriko Sasaki, Former Professor of Silver Industry at Gangnam University
"Korea Has Stricter Government Regulations on the Silver Industry Compared to Japan"

South Korea is approaching a super-aged society where the elderly make up more than 20% of the total population. Among them, the large baby boomer generation (born 1955?1963), approximately 7 million people, have been entering the elderly demographic one by one since 2020.

The baby boomer generation is also called active seniors. Compared to past elderly generations, they have received systematic education, have higher economic status, and are physically and mentally healthy and active. As active seniors emerge as a new core consumer group, interest in South Korea’s silver industry is growing. However, there are calls for the government to ease regulations for the silver industry to grow.

Former Professor Noriko Sasaki, Department of Silver Industry, Gangnam University

Recently, Noriko Sasaki, former professor of the Silver Industry Department at Gangnam University (age 74), whom I met near Seoul Station, emphasized the need for the government to ease various regulations for the development of South Korea’s silver industry.

Professor Sasaki said, “As the baby boomer generation in Korea begins to retire in earnest, the silver industry market is expected to grow significantly in the future. However, since there are many government regulations, the government needs to ease related regulations for the development of the silver industry.”

She added, “In Japan, the silver industry has grown under private sector leadership, expanding in scale and creating various lifestyle options for the elderly. In Korea, since the silver industry is growing under government leadership, the choices for the elderly are limited, and growth potential may be slow.”

The following is a Q&A with Professor Sasaki.

- How large is the gap between the silver industries of Japan and Korea? Are their development statuses very different?

▲ Korea has strict regulations. Under the Long-Term Care Insurance system for the elderly, what seniors can use is limited. Since prices and other factors are already fixed, the private sector cannot grow significantly. Japan also had a similar long-term care insurance system that greatly influenced the silver industry, but the private sector’s influence is gradually increasing because government support has limits. The composition of the elderly population in Korea is also changing a lot. As the baby boomer generation begins to retire, there are more elderly people with economic power and experience.

- Does this mean that Korea’s silver industry has high development potential?

▲ There is a much greater possibility for development. However, it is difficult if government regulations are strict. The government needs to clearly recognize that the aging society is changing. Policies should vary depending on who becomes elderly. Only then can the industry’s market size grow.

- How should policies be improved?

▲ From a government policy perspective, more autonomy should be granted. It should proceed by loosening various regulations. Of course, it must be done in a way that suits Korea’s situation.

- Has Japan’s silver industry developed under government leadership?

▲ The government has not led it. The private sector has led it. The silver industry is not visible. Rather than the silver industry developing, companies have done it on their own. The Japanese silver industry currently has a market size of about 11 trillion yen.

- How has Japan’s silver industry changed?

▲ In 2025, the baby boomer generation in Japan will become the late elderly generation. This has brought many changes to the elderly travel business. There are many products developed for seniors, such as slow-paced travel, barrier-free hotels, and regions. This has been underway for 20 years. The sports field is similar. Senior-friendly products have appeared, such as park golf with simplified rules and exercise equipment for seniors.

- In Korea, large companies are trying to enter the silver industry, but there are complaints that regulations are too strict and it is not profitable. Doesn’t the nursing business require a large initial investment?

▲ Ultimately, within the Long-Term Care Insurance system, it is only welfare. In Korea, it is only welfare, not business. The Classic 500 and Samsung Noble County are all targeted at the wealthy. Many silver towns have been built, but they are industries targeting people with money. These silver towns will not use long-term care insurance. In Japan, large companies mainly utilize long-term care insurance. When costs are needed, some are borne by the individual, and some are subsidized by the insurance. It operates more freely than in Korea.

- Are Japanese silver companies profitable?

▲ There are facilities used by ordinary people in Japan to some extent. However, Japan also faces a shortage of care workers because wages are low. They are trying to raise wages through legal revisions. Foreign workers are also being introduced. Still, the shortage remains. The shortage of care workers is a similar problem in both Japan and Korea.

- Korean elderly prefer to live at home rather than in nursing homes or hospitals if they are not very ill. Is the situation similar in Japan? Do Japanese elderly have resistance to nursing facilities?

▲ In Japan, there is also a perception that home is better if possible. Wealthy people can use their money to solve problems somehow. If they don’t have money, it must be solved from a welfare perspective. The problem is the middle class. They ultimately have to be cared for by family. In Japan, sons may live in Tokyo while parents live in rural areas. Living together is not always good in such cases. It is probably the same in Korea. It is not natural for either side. Still, care is needed, so they do it reluctantly. The long-term care insurance system is designed to care well for such people.

- Are elderly-specialized stores well activated in Japan?

▲ Yes. Nowadays, some department stores have spaces with elderly courses. They measure things like how far one’s stride is according to health. When climbing stairs, music may play. When it rains, many people walk there. There are many marts nationwide with walking assistance or space walking. While there are not many places with special devices, many have courses. It would be good if Korea introduced this as well.

- Korea’s silver industry seems to be welfare-oriented, while Japan’s is private sector-oriented.

▲ In Korea, welfare itself is perceived as “free” or something to receive. I think welfare is not about the government doing everything. A welfare society means everyone lives with a welfare mindset. Korea’s welfare has focused only on receiving benefits. When I recently arrived in Korea, I asked a young person where to go to a hotel. They kindly told me to go to exit 12 of Seoul Station. That is a welfare mindset. Welfare is not about receiving government benefits but about giving and receiving help. Many people in Korea already have a welfare mindset.

- Korea must solve low birth rates and aging simultaneously.

▲ It is worrisome. Children must grow up healthy. Japan’s birth rate is 1.26. Still, some people have 4 or 5 children. In an aging society, many people need help. Receiving help is also strength. There is a term called “suwonryeok” (helping power). It means having the strength to say, “I can’t do it, so please help me.” Japan has many natural disasters, so people help each other. Some elderly become disabled along the way. I think the ability to say, “I can’t live without help, I can’t do it,” is also strength.

- Elder poverty is serious in Korea, and many elderly work because they have no money. Is it similar in Japan? Do you think income polarization and elderly poverty affect the silver industry?

▲ Japan allows people to continue working until age 75. Elderly people work a lot. Even people in their 70s work a lot. Of course, they don’t earn 500,000 to 600,000 yen but work for less than 100,000 yen. This is a way to stay healthy by being socially active while working. Having work is good. I am 74 this year. Many friends my age are active. In Japan, there is a saying, “Kyo iku,” meaning “You must have somewhere to go today.”