Expansion of Directly Operated Funeral Halls in Response to Growing Funeral Demand
Premium Hotel-Level Strategies and Coexistence with Local Communities
With the rapid changes in population structure, the funeral service market is expected to grow sharply, and funeral demand is also expected to continue increasing. In this context, the funeral service industry is focusing on expanding directly operated funeral halls.
According to the funeral service industry on the 13th, major funeral companies are intensifying investments to expand directly operated funeral halls. Freed Life plans to secure an additional 3 to 5 locations annually in the long term, while Kyowon Life intends to expand its directly operated funeral halls to 25 locations in the future. Boram Sangjo is also planning to expand its funeral hall infrastructure in a similar direction.
Freed Life first introduced its directly operated funeral hall brand 'Shillnakwon' in Gimpo, Gyeonggi Province in 2018 and currently operates 15 locations nationwide. Kyowon Life owns seven directly operated funeral halls nationwide, including in Yeongdeungpo-gu, Seoul, under the 'Kyowon Yeoum' brand. Unlike the two companies managed under an integrated brand, Boram Sangjo operates 13 directly operated funeral halls nationwide under brands reflecting regional names such as 'Boram OO Funeral Hall' and 'OO State Funeral Hall.'
The industry is not only increasing the number of funeral halls but also striving to enhance brand competitiveness through premium strategies. They are investing in creating a pleasant condolence environment by introducing bright and sophisticated hotel-level interiors, spacious parking lots and rest areas, and the latest funeral equipment, moving away from the dark and heavy atmosphere of existing funeral halls. They also seek to differentiate their services by offering private brand (PB) products such as handcrafted beer and nuts produced in-house at the funeral halls.
Funeral companies are focusing on the funeral hall business due to the expected surge in funeral demand. According to the Statistics Korea’s future population projections, the annual number of deaths in Korea is expected to exceed 400,000 by 2030 and reach 700,000 by 2070. An industry official predicted, "High-quality funeral facilities will become essential infrastructure for local communities."
Fried Life executives and employees held the first event of the social contribution project "Companionship of Paradise" in Hongcheon-gun, Gangwon-do, last January. Photo by Fried Life
Companies are also actively laying the groundwork for their business through win-win strategies with local communities. Freed Life is creating direct and indirect employment by cooperating with companies in the areas where 'Shillnakwon' is located and operates a social contribution project involving employees called 'Shillnakwon’s Companion.' Kyowon Yeoum funeral halls have established business partnerships with 193 institutions, including 28 companies such as POSCO Humans, 27 nursing hospitals, schools, organizations, religious institutions, and funeral service companies, and are conducting campaigns to promote eco-friendly funeral culture by expanding the use of reusable containers.
Additionally, Boram Sangjo recently unveiled the 'Yeoju State Funeral Hall,' a remodeled version of its directly operated Korean Funeral Culture Center. This facility, transformed into the largest modern facility in the region, held an official opening ceremony attended by about 150 company officials and local residents, reaffirming their commitment to coexistence with the local community. A Boram Sangjo representative said, "We conducted a large-scale remodeling to provide customer-centered services," adding, "We plan to continue various contribution activities for the Yeoju area in the future."
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