South Korea, which has one of the fastest aging populations in the world, adds 230,000 elderly households aged 65 and older every year. However, the current housing supply for the elderly accounts for only 0.6% of all elderly households. Critics argue that the Korean government’s housing policies favor young people and newlyweds, neglecting the needs of the elderly.
Housing for the elderly includes accommodations provided by public organizations such as the Korea Land and Housing Corporation (LH). This encompasses welfare housing that integrates with social welfare facilities and rental housing for low-income elderly individuals. The LH is responsible for developing land and constructing houses for both private and public use.
Experts highlight the marginalization of the elderly in government housing policies. Many elderly individuals, especially those without their own homes, face the burden of paying high monthly rents on limited incomes, making housing costs a significant contributor to elderly poverty. They advocate for “special provisions for the elderly in public sales and rentals, and incentives such as increased floor area ratios for the private sector to encourage more housing for the elderly.”
The Korea Housing Institute (KHI) report on improving the housing convenience of elderly households, released on Feb. 27, reveals that there are only 30,000 publicly supplied housing units for the elderly, just 0.6% of the total 5.06 million elderly households. Last year, only 2.2% (478 units) of the rental housing provided by LH was allocated to the elderly. The availability of senior welfare housing, like senior towns in the private sector, is also insufficient, with only 8,840 units across 39 locations nationwide.
Considering the aging population and the slow expansion of senior housing, the shortage is expected to persist in the near term. In Korea, the number of people aged 65 and over is increasing by more than 410,000 annually, while the number of elderly households is rising by 230,000 annually. Meanwhile, the government’s barrier-free public housing for low-income seniors has added only 800 units annually since 2019, a mere 0.3% of all new elderly households.
Given Korea’s elderly relative poverty rate at 39.3% in 2021, the second highest in the OECD after Estonia, there is a strong argument for increased public leadership in expanding senior housing. Nam Hyung-kwon, Associate Researcher at KHI, suggests, “Following Japan’s plan to increase elderly housing from 2% to 4% of all elderly households by 2025, Korea should aim to reach 2% by 2030.”
To expedite construction, some propose that housing funds support renovating existing homes to meet senior housing standards. Ko Jong-wan, head of the Korea Asset Management Institute, recommends, “In preparation for an ultra-aging society, the government should boost the supply of senior-only housing for low-income seniors and expand tax incentives and loan benefits to stimulate senior housing for the middle class.”
