South Korean insurance companies are accelerating their expansion into the elderly care sector as the country approaches a super-aged society. Leading the charge is Samsung Life Insurance, the nation’s top life insurer, which is actively pursuing opportunities in the sector.
Samsung Life Insurance recently elevated its “Senior Living Task Force” to a permanent “Senior Business Team,” according to industry sources. Initially established last year under the company’s planning department to explore senior-related ventures, the team’s upgrade reflects a strategic shift to diversify revenue streams amid challenges in the domestic market.
Other major insurers are also making moves. Hana Life Insurance is entering the elderly care business, joining Shinhan Life Insurance and KB Life Insurance. Hana Life has established a subsidiary dedicated to the sector and launched a daytime care service in the second half of last year. The company plans to open a premium care facility near Seoul by late 2026.
Shinhan Life Insurance is expanding into the sector through its subsidiary Shinhan Life Care, which opened its first long-term care center, the Bundang Daycare Center, in November last year. The company aims to provide comprehensive senior services under a “total life care” model and has repurposed its healthcare subsidiary, Shinhan Cube-On, to focus on senior care.
KB Life Insurance’s subsidiary, KB Golden Life Care, was the first in the financial industry to establish an elderly care business in 2016. Since then, it has launched several facilities, including the Gangdong Care Center in 2017, Wirye Village in 2019, and Seocho Village in 2021. The company plans to open additional urban care centers in Seoul’s Eunpyeong and Gangdong districts, as well as in Gwanggyo, Suwon, next year.
The push into elderly care comes as insurers face mounting challenges from a new accounting standard, IFRS 17, and economic uncertainties. Insurers, traditionally reliant on savings-type and whole-life insurance products, are grappling with declining profitability due to demographic changes like low birth rates and an aging population. The introduction of IFRS 17 has further eroded returns from their core savings products.
However, significant hurdles remain. Under the Welfare of Senior Citizens Act, companies must either own or lease land or buildings to establish elderly care facilities with a capacity of 30 or more residents. This requirement increases costs, particularly in high-demand areas like the Seoul metropolitan region, where land and construction expenses are steep.
“There are substantial barriers to entry, but the elderly care sector represents a crucial opportunity for insurers seeking new revenue sources,” said an industry official. “More companies are likely to join the market in the coming years.”
