Concerns of Middle-Class Seniors: "Where Should We Live?" [Senior House]

[1-1] The Blue Ocean Opened by Middle-Class Seniors

The Polarized Korean Senior Housing Market Between Ultra-Wealthy and Basic Livelihood Recipients
Japanese Senior Housing with End-of-Life Rooms, Saturated Market Developed Through Government Support

Need to Prepare Housing for Middle-Class Late Elderly Like Japan

▲On the 25th of last month, elderly people are walking hand in hand in a park in Seoul. Photo by Jo Yongjun jun21@

"Where will we live when we grow old?"

The era of 10 million elderly people. This is a problem faced by ordinary seniors living around us and a concern that will soon confront us all. If we do not prepare now, when someone needs care, they may drift without a place to live.

Even if you have succeeded in owning your home throughout your life, it is not the end. In a super-aged society, securing housing for old age is a challenge. It becomes more serious if you are single or if your spouse has passed away and you have to live alone. Moreover, if your health deteriorates, no matter how much the house is yours, it can no longer be called a warm sanctuary.

Asia Economy urgently inspected the senior housing market in Korea to establish a new housing culture for 10 million elderly people. To hear voices from the field, we visited a total of 10 senior housing facilities domestically and internationally, ranging from ultra-luxury homes to welfare housing. In Korea, the market is clearly divided between luxury senior welfare housing created by private companies and public rental housing provided by the government. There is no middle ground for middle-class seniors anywhere.

In this situation, recently some large corporations have recognized the potential of the senior housing market and are starting to build senior housing facilities centered in Seoul. However, it is still in its infancy and faces difficulties due to outdated laws and the absence of a control tower.

This situation is similar to Japan about 10 years ago. Japan, now called the "senior housing paradise," was no different from Korea in the past. The Japanese government subsidized private companies building senior housing and provided tax breaks, gradually expanding the market. They included only essential functions and set monthly living costs to match the pension levels of middle-class seniors.

The core of Japan’s senior housing policy is to allow anyone to move in without financial burden. Thanks to this, the number of middle-class senior housing (service-provided elderly housing and housing-type paid senior homes) rapidly increased. According to Japan’s senior housing platform "Kaigo Home," as of the 20th, there are over 20,000 nationwide. The market has become so saturated that some places have even closed down.

Services have also evolved. The senior housing "Greatest Life (グレイテストライフ)" in Asakusa, Tokyo, has a hospice room where elderly residents can peacefully spend their final moments. It helps them avoid going to the hospital at the last moment by having doctors visit so they can pass away where they lived.

Japan’s experience overcoming polarization offers many lessons, but it is not enough on its own. First, to welcome the era of senior houses, a control tower must be established to prepare a long-term supply plan. Tax benefits should be given to private companies, and land for facilities should be supplied in the metropolitan area. Monthly rent must be set at a level affordable by seniors’ pensions, and it must be guaranteed that they receive quality services.

Asia Economy begins a major project titled "The Era of Senior Houses is Coming," containing various proposals to expand popular facilities unique to Korea. Through this project, we aim to raise interest across society, including the government and the National Assembly, and contribute to preparing a better super-aged society.

[1-1] The Blue Ocean Opened by Middle-Class Seniors