[Senior Trend] Observing Senior Industry Innovation in China ④

Boram Lee, CEO of Third Age

It is the last morning of the inspection tour in China. Winter in Shanghai is characterized by poor heating systems, causing the air to be murky and quickly darkening the collar of the neck or around the nose. At the accommodation, I turned on the morning news of the local public broadcaster CCTV. The content was about China’s future planning directions and issues, with the silver industry emerging as a key sector. In particular, there was an introduction to a forum where the Communist Party government discussed long-term development directions, frequently mentioning smart elderly care. The main point was that it is important to rapidly grow elderly care systems that integrate advanced digital technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), and 5th Generation Mobile Communications (5G) to support homebound seniors, elderly care facilities, and senior communities. Active participation from the private sector is necessary, and the government intends to keep pace as much as possible. In capitalist societies like Korea and Japan, the government plays a large role in elderly care from a welfare perspective. However, why does the Communist Party government emphasize the role of the private sector and actively discuss sustainability from a business perspective? Those familiar with China naturally think of “Socialism with Chinese Characteristics.” China evolved from a period of collective farming, labor, and distribution where everyone was equal but suffered extreme hunger, to the current Chinese-style system that activates the market through reforms. Therefore, China’s smart elderly care aims to provide various services based on pensions rather than welfare systems, tailored to payment capacity, and to secure efficiency through large-scale private investment.

Today’s visit is to Fushoukang, chosen by famous investment companies such as Fosun Group and Sequoia Capital. The company’s name means Happiness (FU ? providing happiness to seniors and their families), Longevity (SHOU ? supporting healthy old age), and Health (KANG ? ensuring health through medical care and nursing). Established in Shanghai in 2011, it is a leading company providing elderly nursing and medical services, currently operating 260 centers nationwide, serving 290,000 customers, and employing 16,000 staff. It has received certification linked to the Chinese government’s elderly welfare policies, allowing it to receive some subsidies through nursing insurance in the service utilization market. It operates mid-to-low-priced silver towns and elderly care facilities utilizing idle land provided by the Shanghai municipal government. First, we toured an elderly care center providing caregiving personnel services located in the Hongkou district. It was situated on the first floor of a central shopping area surrounded by old Shanghai-style houses and residential complexes. Nearby were shops such as a wedding dress store, a popular milk tea shop, and a pizza place, but honestly, the area looked shabby. Inside the center, there were leaflets displayed about elderly diapers and dementia information, but nothing particularly remarkable. It is a place focusing on home nursing (居家?理) similar to visiting care in Korea, where caregivers visit the homes of nearby seniors to provide daily living support and rehabilitation therapy. They aim for customized services, allowing hourly reservations as needed, and seniors pay only for the actual time used. Even within China, Shanghai, a pioneering city in advanced elderly care, allows only one hour per day of nursing protection services under health insurance. Depending on health grades, services can be provided 3, 5, or 7 times a week, but the service time remains one hour.

With some disappointment, we moved to the headquarters located 15 minutes away. And I was amazed. I was able to see what an AI-based caregiving solution is. Quoting another participant, it felt like “seeing the ultimate digital elderly care in China.” The internal system at headquarters monitored the health status and service details of elderly customers in real time. Using IoT-based devices, it detects falls, records and analyzes real-time health status, and enables emergency calls. It is “24-hour smart nursing.” Dedicated nursing managers provide comprehensive customized nursing, including daily living support such as meals, cleaning, and bathing, as well as massages for seniors with mobility difficulties, hospital accompaniment, and post-discharge rehabilitation programs. During this, elderly data and nursing-related experiences are accumulated and delivered within the company through systematic training programs. This accumulated data improves work efficiency, allowing a newly hired manager to care for 6 people initially, gradually increasing to 42. Also, caregivers can easily check digitally how many customers they need to visit today, where the seniors currently are, and how much they have moved. During the demonstration, numbers were continuously updated by region, caregiver, gender, and age. The company prevents fraud by automatically recording conversations between caregivers and customers and tracking locations via mobile phones, which would be difficult to implement in Korea. VIP services can also be selected depending on the circumstances of each senior.

By reducing unproductive administrative and management tasks, they pursue optimized care and are further accelerating the production of digital caregiving devices. The system connects to police or fire departments if suspicious movements are detected by home cameras. While Japan and Korea have sensors on beds to monitor sleep patterns, China’s system is notable for its high practical use on site. The founder studied in Japan and experienced an aging society early on, but when caregiving issues arose with parents in China, he was helpless without a solution. After returning to China, he established this company, referencing Japanese technology and cases, and now plans to expand into Japan. When the Third Age inspection team visited, a Japanese senior company was waiting for the next meeting, and they were surprised to receive their first contact from Korea. Hoping for active exchanges between the two countries, I am very curious about the future of China’s smart elderly care and hopeful it can become a new alternative in Northeast Asia.

Lee Boram, CEO of Third Age