#1. In April 2025, law firm Daeryook & AJU established a 'Senior Industry Support Specialist Team.' This team is currently providing consulting services related to University Based Retirement Communities (UBRC), which involve creating retirement communities in connection with university campuses. UBRCs offer lifelong learning opportunities, such as continuing education and auditing classes, to retired seniors. Retired seniors contribute to the university through activities like mentoring and serving as startup advisors, and they also participate in social activities. The introduction of UBRCs became possible after the 2023 amendment to the Private School Act Enforcement Decree, which allowed universities to utilize idle land for other purposes. Since 2024, Daeryook & AJU has been working on such projects with Dongmyung University and Chosun University. Recently, the firm has also been in discussions with five to six universities in the Seoul metropolitan area regarding additional related projects.
#2. The real estate group at Kim & Chang is also providing advisory services for various residential projects, including senior housing. Notable examples include advising a construction consortium on the acquisition of land for senior welfare housing in Dongtan, Hwaseong, Gyeonggi Province, and supporting senior housing development projects promoted by domestic Project Finance Vehicles (PFVs).
Law firms are turning their attention to 'senior housing.' Senior housing refers to facilities that provide housing, as well as medical, financial, and leisure services for the elderly. These are active, multi-purpose residential spaces designed to align with the values of the baby boomer generation, who prefer a more active lifestyle rather than staying in nursing homes. As of 2023, there were about 40 'silver towns' nationwide. Supply had been limited due to regulations such as the Senior Housing Act. However, in July 2024, the government announced a 'Plan to Promote Senior Residences.' As senior housing has emerged as an alternative asset to traditional commercial real estate, investor interest has grown. Law firms have not missed this growing demand.
Cho Ungyu (age 43, 41st class of the Judicial Research and Training Institute), an attorney at Barun Law LLC, stated, "While there have always been developers specializing in senior housing, recently more companies are seeking to create facilities that provide comprehensive services, such as nursing hospitals and financial products, rather than just simple residential spaces. This requires legal review from multiple perspectives. In a reality where it has become difficult for parents to be cared for by their children, senior housing is being recognized as an alternative that allows the elderly to care for themselves." A representative from Kim & Chang also commented, "Recently, in the alternative investment sector, there has been growing interest in senior housing among investors, operators, and other market participants. Since the relevant systems and laws have not yet been fully established, legal reviews based on expertise and extensive experience are necessary."
In addition to Daeryook & AJU and Kim & Chang, other law firms are also actively providing advisory services related to 'senior housing.' Hwawoo provided advice to a corporate client on a 'hotel-style senior town development project' through its asset management center. The firm is also supporting customized asset management services for residents in collaboration with financial institutions.
Jipyung has also provided consulting on senior housing to construction and development companies interested in this sector through its REITs fund group. The firm is planning to offer advisory services on asset management, inheritance, and related matters to those wishing to move into such facilities.
In March 2025, SK D&D, along with its asset management subsidiary D&D Investment and the U.S.-based private equity firm Warburg Pincus, signed a 'joint investment agreement for senior housing development.' Their first project is to develop and operate a senior residence in Bangbae-dong, Seocho-gu, Seoul, for which Sejong provided advisory services. Sejong also plans to launch a dedicated senior housing specialist team in the second half of 2025.
Interest in senior housing is expected to grow further. In April, a 'Senior Housing Innovation Strategy Forum' was held at the National Assembly. During the forum, participants emphasized the need to create a free market environment to enable the development of a Korean-style senior housing model by easing regulations related to senior housing.
Seo Hayeon, Legal Times Reporter
※This article is based on content supplied by Law Times.
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