[비즈한국] The pharmaceutical and biotech industry is diving into businesses such as "nursing homes" and "senior residences" to capture the elderly population. As of last year, South Korea entered a "super-aged society" with the proportion of the population aged 65 and older exceeding 20%. The United Nations (UN) classifies a society as "aging" if the population aged 65 and over is 7% or more, "aged" if it is 14% or more, and "super-aged" if it is 20% or more. South Korea entered an aged society in August 2017 with a figure of 14.02%, and became a super-aged society just seven years later. The pharmaceutical and biotech industry, which had previously provided platform-based specialized senior healthcare services, is accelerating its business diversification.
The pharmaceutical and biotech industry's business targeting seniors is shifting toward "spaces." This month, CHA Biotech085660's subsidiary CHA Healthcare and Chaum, a medical institution specializing in preventive medicine and anti-aging, signed a strategic memorandum of understanding (MOU) with POSCO E&C for the senior residence business. Chaum plans to provide personalized anti-aging programs to residents based on results from senior-specialized health checkups, while CHA Healthcare intends to provide an AI-based digital healthcare platform linked with Chaum's programs. POSCO E&C stated that through this MOU, it aims to actively enter its own projects, various public-offering projects, and senior-based complex development projects.
This is not the industry's first foray into space-based projects for the elderly. Previously, Chong Kun Dang185750 affiliate Chong Kun Dang Industrial began its nursing business in August 2021 by opening "Belle Foret," a nursing home facility. Located in Gangdong-gu, Seoul, the facility was built with two basement levels and four floors above ground, covering an area of 4,920 square meters. It provides 100% single-occupancy rooms and offers specialized rehabilitation services, as well as personalized treatment and nursing care services. Despite the cost of over 3 million won per month for a standard room, there is a waiting list of about 400 people. According to audit reports, Chong Kun Dang Industrial’s revenue from nursing facilities was 4.2497 billion won in 2022 and 5.33877 billion won in 2023. In May 2023, the company expanded its nursing business by acquiring "Heritage Nursing Home," an 8,725-square-meter facility located in Seongnam, Gyeonggi Province.
Until now, the industry had focused on providing platform-based healthcare services for the elderly. GC Care, the healthcare subsidiary of GC Biopharma006280, launched a "senior-specialized healthcare service" in 2023 by utilizing the affiliate's partnership network. Key services include: scheduling medical appointments and checkups, managing chronic diseases and supporting the treatment of major illnesses, cognitive rehabilitation programs, and nursing consultations with preferential access to day-care centers. Lotte Healthcare launched a personalized health management platform called "Cazzle" in 2023 and had anticipated senior business collaborations with Lotte Hotel, the Lotte Medical Foundation, and others. However, due to continued deficits, Lotte Healthcare terminated the "Cazzle" service last year, and Lotte has entered the process of liquidating the entity.
The industry's shift in focus appears to be influenced by the fact that platform-based healthcare services have not been effectively adopted by the elderly, who generally have lower digital literacy. According to "Social Trends in Korea" by the Statistics Korea's Statistical Research Institute, the gap in digital literacy among South Koreans is quite large across age groups. Specifically, as of 2022, even within vulnerable information groups, the digital literacy level of the middle-aged and elderly compared to the average citizen was only 69.9%, which is lower than that of farmers and fishermen (78.9%), people with disabilities (82.2%), and low-income groups (95.6%).
Since the government announced its "Measures to Revitalize Senior Residences" in July last year, the pharmaceutical and biotech industry, as well as the hotel and financial sectors, have been stepping up to the challenge. The government's policy is to ease regulations across the entire supply chain—from establishment and operation regulations to site and funding—to significantly expand the supply of senior residences. This includes all elderly-friendly residential spaces where services are provided, such as elderly welfare housing (public rental), Silver Stay (private rental), and Silver Towns (senior welfare housing).