South Korea Long Term Care Market Overview, 2031

Key Insights

• South Korea has officially entered a "super-aged society" in 2025, with the population aged 65 and above reaching 10.72 million, accounting for 20.7% of the total population for the first time in the nation's history. This represents a year-on-year increase of approximately 601,000 elderly individuals. The working-age population has concurrently fallen below 70%.
• The Long-Term Care Insurance for the Elderly system, introduced in 2008, is the cornerstone of South Korea's long-term care financing. According to the National Health Insurance Service's 2025 Statistical Yearbook, the number of recognised beneficiaries reached 1,235,045, a 6.0% increase from the previous year, meaning more than one out of every ten seniors in Korea is receiving benefits.
• Annual long-term care benefit payments reached a record high of 17.684 trillion won in 2025, up 9.3% from the previous year. Compared to 2020, when the figure was 9.8248 trillion won, the benefits have grown by nearly 8 trillion won in five years, almost doubling in size. The National Health Insurance Service covered 16.1618 trillion won, accounting for 91.4% of the total burden.
• Home-based (community) care continues to dominate the service delivery landscape. In 2025, home-based care accounted for 63.0% of the Service's total burden at 10.1897 trillion won, while institutional care accounted for 36.8% at 5.9455 trillion won. Home-based care grew by 10.3% compared to 2024, outpacing the 8.0% rise in institutional care.
• The long-term care infrastructure comprises 29,734 institutions nationwide as of 2025, an increase of 676 from the previous year. Home-based institutions account for 23,373 (78.6%), while facility-based institutions number 6,361. The workforce has reached 726,809 employees, with care workers comprising 654,034 (90.0%).

Market Outlook

• According to the research report, "South Korea Long Term Care Market Overview, 2031," published by Bonafide Research, the South Korea Long Term Care Market is expected to reach a market size of more than USD 38.9 Billion by 2031. This growth is supported by accelerating demographic aging, the universal coverage of the Long-Term Care Insurance system, and the ongoing expansion of home- and community-based care services.
• South Korea's demographic trajectory is the primary driver of long-term care demand. The elderly population (65+) reached 10.72 million in 2025, accounting for 20.7% of the total population, with the country having officially entered a "super-aged society". The 60+ population has surpassed 14.63 million. By 2050, the proportion of elderly is projected to reach over 40%, creating sustained and intensifying demand for long-term care services across all segments.
• The Long-Term Care Insurance system continues to expand its reach. With 1.235 million recognised beneficiaries and 1.207 million actual benefit users in 2025, the system now covers more than one in ten seniors aged 65 and over. The recognition rate for applicants has exceeded 90% for the first time since the program's inception. Total benefit payments of 17.684 trillion won in 2025 represent nearly double the 2020 level of 9.8248 trillion won.
• The home care and community-based care sectors are expanding rapidly. Home-based care benefits grew by 10.3% in 2025, outpacing the 8.0% growth in institutional care. The number of home-based care institutions reached 23,373, while facility-based institutions numbered 6,361. The workforce continues to expand, reaching 726,809 employees in 2025.
• The South Korean government is actively addressing the challenges of the super-aged society through policy reforms. The 2025 budget for the Long-Term Care Insurance program reached 17.4 trillion won, a 7.3% increase from the previous year. However, the system faces financial sustainability challenges, with net income declining by approximately 20% annually and the statutory reserve ratio falling from 36.1% in 2016 to 27.0% in 2024. The government is also pushing to apply national health insurance coverage for care service fees in nursing hospitals, aiming to reduce the portion of care costs borne by patients from the current 100% to around 30%.

Market Dynamics

Driver: Accelerated Demographic Aging and Rising Care Dependency South Korea is experiencing one of the most rapid demographic transitions among OECD countries. The population aged 65 and above reached 10.72 million in 2025, accounting for 20.7% of the total population, marking the first time the country has entered a "super-aged society". The 60+ population has surpassed 14.63 million. The elderly population grew by approximately 601,000 in a single year, while the working-age population fell below 70%. By 2050, the proportion of elderly is projected to exceed 40%. The number of recognised long-term care insurance beneficiaries reached 1.235 million in 2025, meaning more than one in ten seniors is now covered by the system. The number of applicants for long-term care recognition reached 1.55 million in 2025, a 4.9% increase from the previous year. The prevalence of chronic conditions and cognitive disorders among the elderly, including diabetes, arthritis, dementia, and Alzheimer's, creates sustained demand for long-term care services across home healthcare, community care, and institutional settings.

Challenge: Severe Infrastructure Deficit and Workforce Shortages South Korea's long-term care market faces significant infrastructure and workforce challenges. Despite having the highest number of long-term care beds among OECD countries, with 32.3 beds per 1,000 people aged 65 or older, the country faces a severe shortage of residential care capacity. The total capacity of long-term residential welfare facilities for the elderly stands at only 279,247 places, while the 60+ population has surpassed 14.63 million. This means there is only one place for every 52.4 elderly individuals. The number of nursing hospitals is set to decrease between 2022 and 2025, while long-term care facilities continue to rise, resulting in overlapping functions. The workforce shortage is equally critical. While the number of long-term care institution employees reached 726,809 in 2025, the demand for care workers continues to outpace supply. Among nursing hospital caregivers, 66% are employed under dispatch contracts, while only 10% are directly hired by hospitals. More than half (52%) of caregivers are foreigners, with the majority being Chinese nationals, and 48% lack relevant qualifications such as a care worker certificate. Two out of three caregivers work 24-hour shifts. In a 2024 survey, 90% of respondents said "care costs are a burden," while 92% felt care benefits are necessary. Without significant investment in workforce recruitment, training, compensation, and infrastructure expansion, South Korea's long-term care system will face increasing difficulty in meeting growing demand.

Trend: Shift Toward Home and Community-Based Care and Policy Reform A fundamental shift in long-term care delivery is occurring in South Korea, with services increasingly being delivered in home and community settings. In 2025, home-based care accounted for 63.0% of the Service's total burden at 10.1897 trillion won, while institutional care accounted for 36.8% at 5.9455 trillion won. Home-based care grew by 10.3% compared to 2024, outpacing the 8.0% rise in institutional care. Within home-based care, home-visit nursing increased by 22.8% year-on-year, the highest growth rate, while day and night care services grew by 10.7% to 2.6415 trillion won. The government is actively reforming the long-term care system to address the challenges of the super-aged society. The 2025 budget for the Long-Term Care Insurance program reached 17.4 trillion won. The government is pushing to apply national health insurance coverage for care service fees in nursing hospitals, starting with "medical-focused nursing hospitals" that directly employ caregivers, aiming to reduce the portion of care costs borne by patients from the current 100% to around 30%. The Ministry of Health and Welfare is also discussing the institutionalisation of caregiving in long-term care hospitals. The private care service market was estimated at 10 trillion won in 2022, with out-of-pocket monthly care fees ranging from 600,000 to 900,000 won for shared care and averaging 3.7 million won for one-on-one care. However, the lack of a proper caregiver management system has been flagged, with 228 care-related murders reported between 2007 and 2023 and 60 cases of caregiver suicides since 2006.

Policies

• The Long-Term Care Insurance for the Elderly system, introduced in 2008, is the cornerstone of South Korea's long-term care financing. The system is a social insurance scheme that provides support for physical and household activities to seniors who have difficulty carrying out daily life independently due to old age or geriatric diseases. Elderly aged 65 or above, or those under 65 with geriatric diseases such as dementia, can apply. Eligibility and grade of service are determined through a review by the Long-Term Care Grading Committee.
• The 2025 budget for the Long-Term Care Insurance program reached 17.4 trillion won, a 7.3% increase from the previous year. Long-term care benefit payments totalled 17.684 trillion won in 2025, up 9.3% from the previous year. The National Health Insurance Service covered 16.1618 trillion won, accounting for 91.4% of the total burden.
• The government is pushing to apply national health insurance coverage for care service fees in nursing hospitals, starting with "medical-focused nursing hospitals" that directly employ caregivers and have more than 100 beds. The aim is to reduce the portion of care costs borne by patients from the current 100% to around 30% and to reorganise nursing hospitals toward a treatment-centric model.
• The Ministry of Health and Welfare held a public forum on "Direction for Promoting Medical Innovation and Institutionalisation of Care Services in Nursing Hospitals" in July 2026, sharing findings from a survey on nursing hospitals and details of the government's implementation plan. The government is discussing the institutionalisation of caregiving in long-term care hospitals.
• The Long-Term Care Insurance system faces financial sustainability challenges. Net income has been declining by approximately 20% annually, and the statutory reserve ratio fell from 36.1% in 2016 to 27.0% in 2024. The Ministry of Economy and Finance and the National Assembly Budget Office project a net income deficit in 2026 or 2027, with reserve depletion expected by 2030. The government is considering measures to enhance the financial sustainability of the system.
• The government is strengthening management of fraudulent claims in long-term care institutions. The number of fraudulent claims cases ranges from 1,688 to 2,085 annually, amounting to 46.4 to 66.7 billion won (2022-2024). On-site inspections of long-term care institutions are being expanded. The government is also working to enhance the efficiency of the fraud monitoring system through the advancement of the false claim detection system and the activation of public interest reporting.
• The government is implementing measures to address the workforce shortage. As of 2025, the long-term care workforce has reached 726,809 employees, with care workers comprising 654,034 (90.0%). However, the government is considering policy reforms to improve working conditions, including addressing the high proportion of dispatch contracts (66%) and the prevalence of foreign caregivers (52%).

Segment Analysis

South Korea Long-Term Care Market By Service Type • Home Healthcare: Home healthcare represents the largest and fastest-growing service segment in South Korea's long-term care market. In 2025, home-based care accounted for 63.0% of the Service's total burden at 10.1897 trillion won. Home-based care grew by 10.3% compared to 2024, outpacing the 8.0% rise in institutional care. Within home-based care, home-visit nursing increased by 22.8% year-on-year, the highest growth rate, while day and night care services grew by 10.7% to 2.6415 trillion won. The number of home-based institutions reached 23,373 as of 2025. The growth of home healthcare is driven by the preference for aging in place, government policies promoting community-based care, and the relative cost-effectiveness of home care compared to institutional care. The segment includes home-visit care, home-visit nursing, day and night care services, and short-term respite care.
• Nursing Care / Skilled Nursing Facilities: The nursing facility sector in South Korea comprises both long-term care facilities for the elderly and nursing hospitals. South Korea has the highest number of long-term care beds among OECD countries, with 32.3 beds per 1,000 people aged 65 or older. However, the total capacity of long-term residential welfare facilities stands at only 279,247 places, representing a significant infrastructure deficit. In 2025, institutional care accounted for 36.8% of the Service's total burden at 5.9455 trillion won. Facility-based institutions numbered 6,361. The number of nursing hospitals is set to decrease between 2022 and 2025, while long-term care facilities continue to rise, resulting in overlapping functions. Among inpatients at nursing hospitals, a "mild/selective admission group" accounts for 32%, indicating that a significant proportion of patients are admitted due to social reasons rather than medical necessity.
• Assisted Living Facilities: Assisted living is an emerging segment in South Korea's long-term care market, encompassing senior housing (silvertown) and residential care facilities. The total capacity of senior housing and nursing facilities combined stands at only 279,247 places. The assisted living sector is expanding, particularly in urban areas, as the government promotes community-based care alternatives to institutional facilities. The segment provides residential care for individuals who require assistance with daily activities but do not need 24-hour nursing care. However, the sector faces significant capacity constraints, with demand far exceeding supply.
• Hospice and Palliative Care: Hospice and palliative care services in South Korea are delivered across multiple settings, including homes, nursing hospitals, long-term care facilities, and dedicated hospice facilities. The growing prevalence of chronic conditions and cognitive disorders among the elderly, including dementia and Alzheimer's, drives demand for end-of-life care services. Among long-term care insurance beneficiaries by grade, Grade 4 beneficiaries accounted for the largest share with 577,572 people (46.8%), followed by Grade 3 with 325,661 people (26.4%) and Grade 5 with 146,088 people (11.8%). The government is working to improve the quality of end-of-life care through policy reforms and institutional development.
• Other Services: This segment includes day care services, short-term respite care, and community-based support services. The number of home-based institutions reached 23,373 as of 2025. Day care services provide social engagement and support for older adults, supporting the preference for home-based care. Respite care services provide temporary relief for family caregivers. The need for these services is growing as families seek alternatives to full-time institutional care while maintaining caregiving responsibilities. The government is expanding community-based services through policy reforms and infrastructure development.

South Korea Long-Term Care Market By Payer Type • Public: Public sources are the dominant payer for long-term care services in South Korea, primarily through the Long-Term Care Insurance for the Elderly system. In 2025, the National Health Insurance Service covered 16.1618 trillion won, accounting for 91.4% of the total benefit burden. The long-term care insurance premium rate, compared to the health insurance premium, rose from 12.95% in 2024 to 13.14% in 2025. The average monthly premium increase per household is 517 won. In 2025, long-term care insurance premiums collected from insured persons reached 11.2294 trillion won, a 4.2% increase from the previous year, marking the first time it has exceeded 11 trillion won. The overall collection rate stands at 99.4%. Public payers represent both the largest payer segment and the foundation of South Korea's long-term care financing system.
• Private: Private sources account for a growing but still limited portion of long-term care spending in South Korea. The private care service market was estimated at 10 trillion won in 2022. Private long-term care insurance products are emerging as a growth segment. The private sector includes supplementary insurance products that complement the public LTCI system and private care services not covered by public insurance. Private sector expansion is expected to continue as the population ages and demand for premium services increases.
• Out-of-Pocket: Out-of-pocket payments represent a significant component of long-term care spending in South Korea. The LTCI system requires co-payments of approximately 30% of costs. Out-of-pocket monthly care fees for shared care range from 600,000 to 900,000 won, and average 3.7 million won per month for one-on-one care. In a 2024 survey, 90% of respondents said "care costs are a burden". The government is aiming to reduce the portion of care costs borne by patients from the current 100% (in nursing hospitals) to around 30%. The financial burden on households is substantial and growing as the population ages.

South Korea Long-Term Care Market By Gender • Female residents account for the largest share of South Korea's long-term care spending, driven by higher life expectancy and higher rates of disability in advanced age. Women are more likely to reach advanced ages where care dependency is highest. Among the elderly population, women outnumber men significantly, particularly in the oldest age cohorts. Women are more likely to live alone in old age, increasing their reliance on formal paid care services. The long-term care workforce is predominantly female, with care workers comprising 90.0% of the total workforce. Female representation is particularly pronounced in the oldest age groups, which have the highest per capita care utilization. The majority of family caregivers are also women, reflecting the gendered nature of care work.
• Male residents account for a smaller but growing share of South Korea's long-term care spending. The need for long-term care affects persons of all ages and is generally measured by limitations in an individual's ability to perform daily personal care activities. Men are more likely to need long-term care at younger ages due to disabilities and chronic conditions. As male life expectancy increases, the representation of men in the older adult cohort is slowly growing. The gender gap is gradually narrowing as male life expectancy increases.

South Korea Long-Term Care Market Economics

• The cost of long-term care services varies significantly by service type, geographic location, and facility type. Annual long-term care benefit payments reached 17.684 trillion won in 2025. The average monthly benefit cost per beneficiary was 1,540,280 won, with the Service's average monthly contribution at 1,407,693 won. Out-of-pocket monthly care fees for shared care range from 600,000 to 900,000 won, and average 3.7 million won per month for one-on-one care.
• Public financing of long-term care is substantial and growing. The 2025 budget for the Long-Term Care Insurance program reached 17.4 trillion won, a 7.3% increase from the previous year. The National Health Insurance Service covered 16.1618 trillion won, accounting for 91.4% of the total burden. The contribution of the National Health Insurance to long-term care financing has been increasing from 7.38% of NHI revenue in 2018 to 12.81% in 2022. The long-term care insurance premium rate rose from 12.95% in 2024 to 13.14% in 2025.
• Staffing costs represent the largest operating expense for all long-term care providers. The workforce has reached 726,809 employees, with care workers comprising 654,034 (90.0%). However, the sector faces significant workforce challenges. Among nursing hospital caregivers, 66% are employed under dispatch contracts, while only 10% are directly hired by hospitals. More than half (52%) of caregivers are foreigners, with the majority being Chinese nationals, and 48% lack relevant qualifications. Two out of three caregivers work 24-hour shifts.
• The economic value of home- and community-based services relative to institutional care is a key policy consideration. Home-based care grew by 10.3% compared to 2024, outpacing the 8.0% rise in institutional care. The government is pushing to apply national health insurance coverage for care service fees in nursing hospitals to reduce the financial burden on households. The private care service market was estimated at 10 trillion won in 2022.


Considered in this report
• Historic Year: 2020
• Base year: 2025
• Estimated year: 2026
• Forecast year: 2031

Aspects covered in this report
• Long-term care Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Service Type
• Home Healthcare
• Nursing Care / Skilled Nursing Facilities: 
• Assisted Living Facilities
• Hospice & Palliative Care:
• Other Services

By Payer Type
• Public
• Private
• Out-of-Pocket

By Gender
• Male
• Female