[6 Trillion Market 'Care Technology'] ① Korean Age Tech "A Blue Ocean Opens"

Emerging Technologies Enhancing Quality of Life for the Elderly
As Korea Approaches a Super-Aged Society, Importance of Technology Increases
Attention from Both SMEs and Large Corporations

As South Korea enters a super-aged society in 2025, with the population aged 65 and over exceeding 20% of the total, age-friendly technology (AgeTech) targeting this demographic is gaining attention. The domestic related market size is currently around 4 trillion won and is expected to reach 6 trillion won by 2030, six years from now. Not only small and medium-sized enterprises but also large corporations are entering this market, which is seen as a 'blue ocean.'

According to data released on the 2nd by Kyung Hee University's Digital New Aging Research Institute, the size of the age-friendly industry market this year is 85 trillion won but is expected to reach up to 280 trillion won by 2030. Among this, the AgeTech market is expected to grow from 4 trillion won to 6 trillion won during the same period. Specifically, elderly spending on technologies for seniors in AgeTech is projected to increase from about 376.5 billion won this year to 570 billion won, and smart home appliances are expected to grow from 3.5 trillion won to 5.4 trillion won over the same period.

AgeTech refers to technologies that improve the quality of life for the elderly, encompassing all kinds of products, services, and technologies that enhance the lives of older adults. South Korea is aging rapidly and is expected to become the country with the second-largest elderly population in the world by 2050. This year, the population aged 70 and over surpassed the population in their 20s, and only about 1% remains before entering a super-aged society (where the population aged 65 and over exceeds 20%).

AgeTech is divided into three core areas: ▲ Autonomous Independent Living Technology for the elderly (AIP Tech), ▲ Elderly Care Technology (Care Tech), and ▲ Human-centered Elderly Technology Adoption Services. Autonomous Independent Living Technology refers to technologies needed for aging in place. This includes smart homes, senior nutrition, digital healthcare, exercise and rehabilitation, mobility, and emotional support technologies. Care Technology supports the work of elderly caregivers and includes care robots and platforms. Technology Adoption Services are service models linked to products (technologies) that help elderly people use technology effectively. This classification is from Kyung Hee University's BK21 AgeTech-Service Education and Research Group (2020).

Although South Korea is still in the early stages, many large corporations, SMEs, and startups are positively evaluating the prospects of AgeTech. Jung Kwang-wook, CEO of Man & Tel, a rehabilitation equipment specialist company, said, "The elderly population is continuously increasing, so we consider it a blue ocean."

Interest from large corporations is also high. SK Telecom provides AI-based smart home care services. When user data is provided through AI speakers installed in homes to an integrated control system, it analyzes and monitors the data to detect abnormal signs and connects users to consultations. Since its launch in April 2019, the service has been provided to about 20,000 households across 110 local governments and institutions nationwide for four years. There is also an AI call-based senior check-in service currently offered in 15 districts of Seoul (12,000 people) and 10 districts of Incheon (4,500 people).

Experts have stated that a government-level roadmap should be established, prioritizing the development of AgeTech in the care sector. Professor Kim Young-sun of Kyung Hee University's Graduate School of East-West Medical Science, who first used the term 'AgeTech' in Korea, said, "Elderly people who need care should receive support so that their families do not lose jobs or stop economic activities due to caregiving." Professor Kim added, "If care robots enter the care field, support such as 'transfer assistance robots' that help move people or robots for bathing and preventing bedsores can help prevent people from quitting due to physical pain."

The National Information Society Agency (NIA) also stated in its report on 'AgeTech Technology and Policy Status in an Aging Society' that "a policy support process for the three core areas must be established." It added, "Resolving the supply shortage relative to demand for care service personnel is the top priority," and emphasized that "policy and investment support focusing on elderly care technology are necessary."

According to the Bank of Korea's 'Measures to Alleviate Labor Shortages and Cost Burdens in Care Services,' labor demand for care service jobs will increase significantly due to aging, but labor supply growth will slow, potentially resulting in labor supply meeting only about 30% of demand by 2042.