Announcement of Revitalization Plans by Ministry of Economy and Finance and Related Ministries
Housing Revitalization Tailored to Income Levels and Health Status
Expansion of Projects to Japan and US Levels by 2035
With the rapid aging of the population, the demand for senior-friendly residential spaces and services is increasing, and the government is promoting projects centered on the private sector through deregulation. The related regulations are being revised to allow the establishment of silver towns based on usage rights instead of land and building ownership, and incentives are being offered to introduce sale-type silver towns in areas with declining populations.
On the 23rd, the government announced the 'Senior Residence Activation Plan' at the Economic Ministers' Meeting. Senior residences include ▲welfare housing for the elderly (public rental) ▲Silver Stay (private rental) ▲silver towns (elderly welfare housing), providing various services tailored to income levels and health conditions as senior-friendly residential spaces.
The government introduced this plan as a follow-up to the public discussion held in March under the theme of 'Healthy and Happy Old Age.' The goal is to significantly increase the supply of senior residences that combine suitable living spaces for the elderly with household, health, and leisure services. The core is to ease regulations throughout the supply stages, from establishment and operation regulations to land and funding, to supply various types of senior residences.
To increase market entry by private businesses, regulations mandating land and building ownership for establishing silver towns will be improved. This is to create conditions for service-specialized businesses to establish silver towns based on land and building usage rights. The government will prepare requirements for service-specialized businesses, establish support grounds, and actively nurture them.
Additionally, in the second half of the year, amendments to the Elderly Welfare Act will be pursued to introduce new sale-type silver towns mainly in population-declining areas (89 locations). To ensure stable operation after sales, it will be mandatory to include a certain percentage of rental-type units. An operational plan to establish a service quality management system will also be prepared and included in the amendment to the Elderly Welfare Act.
Considering the difficulty of supplying land in urban areas where demand is high, support will be provided to convert idle facilities or idle national land within cities into senior residences. Public support for private rental loans from the Housing and Urban Fund for construction funds for senior residences will be reviewed, and sale-type silver towns will be included in the target of regional revitalization investment funds.
Furthermore, to support middle-class elderly people who have been relatively overlooked, Silver Stay will be newly introduced, offering reasonable usage fees compared to silver towns. The scope of residents will be expanded to include homeowners aged 60 and over, and plans to mix general housing to accommodate various generations will be considered.
To protect residents and guarantee their choices, standard contracts and quality certification systems will be introduced. A system to disclose information on facility status and usage fees will be established. To reduce the burden of securing usage fees after moving in, the system allowing the sale of houses valued under 1.2 billion KRW through Seoul Housing Corporation and receiving the sale proceeds as an annuity will also be improved.
When silver town residents require nursing services, standards will be established to allow them to remain residents as long as they do not infringe on the living rights of other residents. Previously, elderly people with long-term care grades 3 to 5 found it difficult to live in silver towns, but this will be improved going forward. In addition, housing benefits (repair and maintenance benefits) for low-income elderly people living in their own homes will be increased to enable them to enjoy life where they live.
The government plans to establish a dedicated task force (TF) led by related ministries such as the Ministry of Economy and Finance, Ministry of Health and Welfare, and Ministry of Land, Infrastructure and Transport to enact a special law for the activation of senior residences. To support projects promptly, a one-stop support system will be established, and additional and supplementary measures will be continuously prepared through field demand surveys and other means.
Oh Hyun-kyung, Director of the Welfare Economy Division at the Ministry of Economy and Finance, said, "We are thinking about (activating senior residences) at the level of the United States or Japan," adding, "The goal is to increase it to about 3% of the elderly population by 2035." The proportion of senior residence households relative to the elderly population aged 65 and over in Korea was 0.12% as of last year, which is lower compared to Japan (2.0%) and the United States (4.8%).
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
