"Market Price Doubled but No Sales"...The Philosophy of Senior Housing with a '1-Year Waiting List' [Life Chapter 3 Companies]

Park Sehun, Chairman of LTS Group
Establishes Subsidiary to Operate Premium Silver Town 'The Signum House'

"The Signum House received business approval before the pre-sale type silver town system was banned. Considering the current land prices in Jagok-dong, Gangnam, the profits would be enormous if we were to sell units. However, I have not sold any units and have no intention to do so in the future."

On the 28th, Park Se-hoon, chairman of LTS Group, who met with Asia Economy, spoke about the silver town 'The Signum House Gangnam' currently operating in Jagok-dong, Gangnam-gu, Seoul. Completed in 2017, The Signum House Gangnam gained popularity as a 'premium silver housing.' Now, there is not only no vacancy but also a waiting period of over a year for move-in. Residents include individuals who have held significant positions such as members of the Bank of Korea's Monetary Policy Committee, ministers, and bank presidents.

During the same period, apartment prices across the street doubled, but Chairman Park repeatedly emphasized that he has no plans to sell units in The Signum House. His philosophy is that if pre-sales occur, the silver town would find it difficult to fully serve as a senior residential facility.

Chairman Park Se-hoon of LTS Group is sitting on the sofa in the lobby of The Signum House. Photo by LTS Group

The Signum House is a silver housing brand created by 'Dotai,' a subsidiary of the manufacturing group LTS Group. Chairman Park, a Won Buddhism believer, initially lent 1.8 billion KRW as a deposit for a site contract for a facility for the elderly and infants to the Won Buddhism foundation, then ended up taking over the land, which led him to directly develop silver housing. It was truly a chance occurrence. Chairman Park said, "Since I was going to do it anyway, I wanted to do it properly and prepared for two years," adding, "We scouted personnel from well-known senior facilities such as Samsung Noble County and Bobath Hospital, and even went to Japan with the building designers to observe elderly housing, putting a lot of effort into it." The building design was selected through a competition, choosing the plan that provided the most comfortable flow for the elderly.

The Signum House, renowned as a premium silver housing, recently opened its second branch, the Cheongna branch, in Incheon Metropolitan City. In front of the Cheongna branch, where the reporter visited, the Simgokcheon stream flows, and behind it is a daycare center where the laughter of children can be heard. The Catholic Kwandong University International St. Mary's Hospital is just a 10-minute drive away, so residents can go anytime if they feel unwell. Most spaces were built barrier-free, with no thresholds, and for elderly residents with mobility difficulties, there are three elevators per floor.

Move-ins began in February. This facility, which can accommodate a total of 139 households, currently has eighteen households living there. Chairman Park also visits and stays at the Cheongna branch twice a week. The purpose is to personally experience what else is needed by living there. As he toured from the basement second floor to the rooftop, introducing various spaces, his sincerity about the silver town was palpable.

At 3 p.m. that day, four residents gathered in the atelier on the lobby floor for an art class. In addition, stretching, board games, and movie screening times were arranged, creating an environment where residents could socialize and enjoy hobbies whenever they wished. Chairman Park explained, "I believe that high-quality 'content' provided by the silver town is important," adding, "As time goes by, the number of programs offered will increase."

- There are various shared facilities, from screen golf to karaoke. If you had to pick one pride of The Signum House.

▲ We put a lot of effort into the common areas so that the content residents can enjoy becomes more diverse. The common area is even larger than the residential area. The community facilities attract a lot of interest from the surrounding area. However, the part I want to emphasize most is our staff. Even if they are not directly employed, anyone providing services at The Signum House must be trained by our company. This training covers why we provide these services and the values we pursue. We instill a sense of mission. At the same time, we always ask residents not to treat staff disrespectfully. Paying money does not grant the right to look down on them. The quality of staff service is also created by the residents.

- Is that possible with just a request?

▲ There was an incident once. A resident repeatedly filed complaints accusing a cleaning staff member of stealing whenever they finished cleaning the house. Even after confirming it was not true and showing CCTV footage, the complaints continued. So, the company spoke with the resident's family. It is difficult for individual staff to handle such situations. We also counseled a grandfather who kept teasing a grandmother mischievously in the elevator. We told them that if they cannot harmonize with the community in this way, we cannot continue to accommodate them. It was essentially a warning. We try to make our staff proud not just as 'employees who receive a salary' but as 'people who contribute to society by caring for elders.'

- Are there hardware differences between the Gangnam and Cheongna branches?

▲ The Gangnam branch is much larger in scale. However, regulations prohibit facilities like pharmacies or hospitals there. In contrast, Incheon City has relaxed regulations to allow neighborhood living facilities. Therefore, a Korean medicine clinic is scheduled to open on the first floor of the Cheongna branch soon, and a Won Buddhism temple is also located there.

- Are there plans for a third branch of The Signum House?

▲ Of course. We are considering two options. One is a silver town for people aged between 80 and 90. Most silver towns currently set the condition that residents must be under 80 years old. However, as healthy life expectancy increases, more people over 80 can live independently. We want to create housing in urban areas that can accommodate this niche demand. At The Signum House Cheongna branch, the units on the first and second floors are operated with this concept. We conduct cognitive tests ourselves to confirm whether someone can live independently.

The second is a 'silver town complex.' We want to build a silver town on a site larger than 100,000 pyeong (approximately 330,000 square meters) by a river. The plan is not to build a large complex but to create a place where grandchildren of seniors want to visit, with zip lines, camping zones, pools, and more. We hope it becomes a space where various generations can interact.

- Are there any institutional issues you have felt while running the silver town business?

▲ I think the problem is that those handling Korea's elderly housing system focus on "how many units to build." While increasing the absolute number is necessary, policy focus should not be solely on that. As people age and become frail, they become lonely. Even those who never thought about death start to do so and want to hear various stories about it. The reason I created a temple at the Cheongna branch was with this in mind. The reason the community space is larger than the residential area is also related to this. Bigger and more units are not necessarily better.