As South Korea enters an ultra-aged society, the senior care industry is projected to reach a market size of 81 trillion won ($80 billion). Pharmaceutical and biotech companies are increasingly entering the market for nursing facilities and short-term care services. The demand for 'interim care,' which assists patients in recovery before returning home after hospital discharge, has prompted companies to pursue various models in the senior care sector, from acquiring and renovating existing facilities to integrating digital healthcare programs.
According to the Korea Health Industry Development Institute, the domestic senior care market is expected to grow to approximately 81.8 trillion won in 2024. The senior care service sector alone is projected to surge from 13.72 trillion won in 2023 to 15.33 trillion won in 2024, marking an 11.7% increase.
In response, major pharmaceutical affiliates such as Jongkundang Industries and Daewoong Development are leading the charge to capture the senior care market through facility acquisitions and the introduction of short-term 'interim care' models.
Jongkundang Industries, a subsidiary of Jongkundang Holdings, opened a premium nursing facility named 'Belforest Yongin' on September 21 in Giheung-gu, Yongin. This facility was completely renovated after acquiring the existing 'Rainbow Silver Cares.' The company aims to expand its senior care business into southern metropolitan areas, following its Heritage Nursing Home and Belforest Gangil facilities, in response to the growing demand for elderly care due to aging.
Daewoong Group launched a 30-room short-term care facility called 'Care Hub' in July in Hanam, targeting the gap between hospital treatment and home recovery. Care Hub is designed for individuals aged 60 and older who require rehabilitation and recovery management after surgery or treatment, or who need short-term care due to family caregiving gaps. The facility integrates health management routines, including cognitive, physical, sleep, and nutrition assessments, and features 24-hour monitoring combined with nursing staff and collaborations with digital healthcare companies to provide cognitive and physical recovery programs.
An industry insider noted, "Pharmaceutical companies are increasing direct contact with patients and seniors through care services, which will ultimately aid in long-term drug development and digital healthcare integration."
The activities of total senior care companies are also noteworthy. CareDoc has recently launched a second-generation wellness daycare brand, 'CareDoc Senior Care School,' in Mapo, Seoul, combining care and education to expand its services for seniors. This initiative aligns with the trend of supporting seniors' daily functioning and social participation through programs that go beyond simple caregiving.
The entry of companies into the care business is seen as a response to the growth of the senior care market, aiming to expand their business scope beyond mere pharmaceutical sales to encompass prevention, recovery, and daily management as a comprehensive healthcare platform. With the nursing service market continuing to grow and the demand for recovery after hospital discharge increasing, this could represent a new revenue stream for these companies.
Park Jae-byeong, CEO of CareDoc, stated, "Recently, the pharmaceutical industry is actively strengthening its entry into the senior facility sector as part of its business expansion. Each company is expected to accumulate real operational experience and resident management expertise, enhancing their service offerings and operational methods." He added, "How well companies implement their brand strengths and business capabilities into actual service models, and how reliably they establish and develop these during operations, will determine their competitiveness in the market going forward."
According to the Korea Health Industry Development Institute, the domestic senior care market is expected to grow to approximately 81.8 trillion won in 2024. The senior care service sector alone is projected to surge from 13.72 trillion won in 2023 to 15.33 trillion won in 2024, marking an 11.7% increase.
In response, major pharmaceutical affiliates such as Jongkundang Industries and Daewoong Development are leading the charge to capture the senior care market through facility acquisitions and the introduction of short-term 'interim care' models.
Jongkundang Industries, a subsidiary of Jongkundang Holdings, opened a premium nursing facility named 'Belforest Yongin' on September 21 in Giheung-gu, Yongin. This facility was completely renovated after acquiring the existing 'Rainbow Silver Cares.' The company aims to expand its senior care business into southern metropolitan areas, following its Heritage Nursing Home and Belforest Gangil facilities, in response to the growing demand for elderly care due to aging.
Daewoong Group launched a 30-room short-term care facility called 'Care Hub' in July in Hanam, targeting the gap between hospital treatment and home recovery. Care Hub is designed for individuals aged 60 and older who require rehabilitation and recovery management after surgery or treatment, or who need short-term care due to family caregiving gaps. The facility integrates health management routines, including cognitive, physical, sleep, and nutrition assessments, and features 24-hour monitoring combined with nursing staff and collaborations with digital healthcare companies to provide cognitive and physical recovery programs.
An industry insider noted, "Pharmaceutical companies are increasing direct contact with patients and seniors through care services, which will ultimately aid in long-term drug development and digital healthcare integration."
The activities of total senior care companies are also noteworthy. CareDoc has recently launched a second-generation wellness daycare brand, 'CareDoc Senior Care School,' in Mapo, Seoul, combining care and education to expand its services for seniors. This initiative aligns with the trend of supporting seniors' daily functioning and social participation through programs that go beyond simple caregiving.
The entry of companies into the care business is seen as a response to the growth of the senior care market, aiming to expand their business scope beyond mere pharmaceutical sales to encompass prevention, recovery, and daily management as a comprehensive healthcare platform. With the nursing service market continuing to grow and the demand for recovery after hospital discharge increasing, this could represent a new revenue stream for these companies.
Park Jae-byeong, CEO of CareDoc, stated, "Recently, the pharmaceutical industry is actively strengthening its entry into the senior facility sector as part of its business expansion. Each company is expected to accumulate real operational experience and resident management expertise, enhancing their service offerings and operational methods." He added, "How well companies implement their brand strengths and business capabilities into actual service models, and how reliably they establish and develop these during operations, will determine their competitiveness in the market going forward."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.