hospital districts are emerging as a new keyword in the real estate market. we analyze the rise in real estate values near large hospitals in an aging society, regional healthcare disparities, and the competition to attract new university hospitals.
table of Contents
- the world's fastest-aging society
- 4x healthcare gap between metropolitan and non-metropolitan areas
- the sick neighborhood phenomenon in Chuncheon
- the battle for university hospitals in new cities
- impact of Byeongse-ri on the local economy
- frequently Asked Questions
- conclusion
the world's fastest-aged society
on December 23, 2024, South Korea officially became an ultra-elderly society. On that day, the number of people aged 65 and older surpassed 20 percent of the total population, making it the fastest-aging country in the world.
what's remarkable is the pace. while it took Japan 12 years to move from an aging society (14 percent) to a super-aged society (20 percent), South Korea passed this stage in just seven years. we became an ultra-elderly society 24 years after entering the aging society in 2000. statistics Korea predicts that by 2045, the proportion of elderly people in Korea will reach 37.3 percent, surpassing Japan to become the world's No. 1 elderly country.
this rapid aging of the population is changing all areas of our lives, and the real estate market is one of the most sensitive. that's why a new keyword has emerged, beyond station areas and school areas: sick areas.
4x healthcare disparity between metropolitan and non-metropolitan areas
to understand the phenomenon of Byeongse-ri, we first need to understand the serious gap in healthcare infrastructure in Korea. according to a study conducted by the Korea Institute for Health and Social Research commissioned by the Ministry of Health and Welfare, the number of essential specialists per 1,000 people is 1.86 in the metropolitan areas, while it is only 0.46 in non-metropolitan areas. that's a fourfold gap.
even more shocking is the comparison between Seoul and Sejong City. seoul has 3.02 specialists per 1,000 people, while Sejong City has 0.06, a 50-fold difference. jeonnam has already surpassed the super-elderly society with 27.18 percent of its population being elderly, but its healthcare infrastructure is far behind that of the capital.
the problem is that this gap is widening. in the five years from 2019 to 2024, the number of specialists in the metropolitan area increased by 8623, while the number in the non-metropolitan area increased by only 2938. the irony continues to be that the elderly population is more numerous in rural areas, but doctors are flocking to metropolitan areas.
the Byeongseguk phenomenon started in Chuncheon
chuncheon, Gangwon-do, is a prime example of how byeongseo rights affect the real estate market. home to Hallim Daechuncheon Sacred Heart Hospital and Kangwon National University Hospital, Chuncheon serves as the medical center of the entire province.
in particular, Hallim Daechuncheon Sacred Heart Hospital was certified as the first research-oriented hospital in the Gangwon region in March 2025, establishing itself as a regional medical hub. it is one of only three regional emergency medical centers in Gangwon Province, covering not only Chuncheon but also Yanggu, Inje, Hwacheon, Hongcheon, and Gapyeong.
the areas where these large hospitals are located have a steady demand for housing from the elderly and hospital employees, for whom access to medical care is important. Especially as the aging population accelerates, there is a clear preference for living near hospitals that can respond to emergencies.
the battle for hospitals in new cities
attracting a university hospital has become a necessity in new city development. the cases of Cheongna Medical Complex Town and Dongtan 2 New City illustrate this.
in Cheongna Medical Complex Town, a large-scale project worth KRW 2.404 trillion is underway, with Seoul Asan Medical Center Consortium selected as the preferred bidder in 2021. along with an 800-bed hospital, the project will include medical research facilities, a life science park, and a senior cluster. construction is scheduled to begin in 2025 with a target opening date of 2029, and is expected to directly employ 5,000 people and generate an economic impact of KRW 3.8 trillion over 30 years.
dongtan 2 New City is facing even stiffer competition. it is a young city with the nation's No. 1 population growth rate and an average age of 39.6, but it has only one hospital with more than 300 beds. The number of beds per 1,000 residents is 6.6, less than half the national average of 14.1.
LH and Hwaseong City promoted the project to host a university hospital with a total project cost of KRW 4 trillion, and Korea University, Chung-Ang University, and Sunchon Hyang-Dae University showed initial interest. However, the first bid in February 2025 was rejected due to high project costs, and in July, the project was rebid with significantly relaxed conditions. the terms included increasing the grace period for land payment from 18 to 24 months and reducing the late payment penalty rate from 30 percent to 15 percent.
"Attracting a university hospital is a key task to build a complete medical system in the Hwaseong Special City area," said Hwaseong Mayor Jung Myung-geun, emphasizing that it is an essential infrastructure to ensure the right to life of citizens.
impact on the local economy
the reason why Byeongse-ri is attracting attention is not just because of its access to medical care. Large hospitals act as an engine that drives the entire local economy.
an 800-bed teaching hospital can directly employ 3,000 to 5,000 people. these jobs range from doctors, nurses, and medical technicians to administrative staff and facilities management personnel. add to that the indirect employment of medical device suppliers, pharmaceutical companies, food service providers, lodging, and more, and the economic impact is multiplied many times over.
the real estate market is also directly impacted, with higher income healthcare professionals demanding housing, an increase in senior migration, and demand for medical tourism-related accommodations. neighboring commercial centers are also revitalized, with pharmacies, medical device stores, and nursing facilities.
by 2050, the elderly are expected to account for 74 percent of all healthcare spending in South Korea. with 32.8 percent of the elderly population living alone, emergency response becomes even more critical. under these circumstances, the value of the sick tax bracket will only continue to rise.
politicians are taking note. attracting teaching hospitals to rural cities has become a regular campaign pledge and a key issue for municipal leaders. this is because citizens recognize large hospitals as essential infrastructure that affects their quality of life.
frequently asked questions
Q1. What is a hospital tax exemption?
byeongsegye is a new term for the area near a large hospital or general hospital. in the same vein as station areas (near subway stations) and academic areas (near prestigious schools), it refers to areas where real estate values increase due to access to medical facilities. as we enter an aging society, the importance of living near hospitals is growing, and it has emerged as a new keyword in the real estate market.
Q2. How serious is the healthcare disparity between metropolitan and rural areas?
according to a survey by the Korea Health and Social Research Institute, the number of essential specialists per 1000 people is 1.86 in the metropolitan area and 0.46 in non-metropolitan areas, a 4-fold difference. seoul and Sejong City have a 50-fold gap. worse yet, the gap is growing. in the five years from 2019 to 2024, the number of specialists in the metropolitan area increased by 8623, while the number in the non-metropolitan area increased by 2938.
Q3. Why is it difficult to attract a university hospital in Dongtan 2 New City?
it is because it is a large-scale project with a total project cost of 4 trillion won. The land acquisition cost alone is about 900 billion won, and a 700+ bed hospital and 4300 residential units need to be built together. after the first tender was won in February 2025, Hwaseong City relaxed the conditions by increasing the grace period for land payment and lowering the delay compensation rate, and held a re-bid in July.
Q4. What is Cheongna Medical Complex Town like?
it is a large-scale medical complex in Cheongna International City, Incheon. the Seoul Asan Medical Center consortium will invest KRW 2.404 trillion to build an 800-bed hospital, research facilities, a life science park, and a senior cluster. it is scheduled to open in 2029 and is expected to employ 5,000 people and generate KRW 3.8 trillion in economic impact over 30 years. it will include a state-of-the-art cancer center and a heavy particle accelerator.
Q5. Will the value of Byeongseo area continue to increase in the future?
according to Statistics Korea, by 2050, 40 percent of the Korean population will be elderly, and 74 percent of medical expenses will be spent by the elderly. one in three seniors will live alone, making access to emergency medical care even more important. given these trends, the value of hospital real estate is likely to increase in the long term. however, new hospitals will be difficult to open due to the high cost and regulations, which will further increase the premium in existing hospitalized areas.
the bottom line
hospital neighborhoods aren't just a real estate buzzword; they're a keyword that reflects the transformation of our society into the world's fastest-aging population. south Korea, which entered the super-elderly society in 2024, will overtake Japan as the world's oldest country by 2045.
the fourfold healthcare disparity between metropolitan and non-metropolitan areas, fierce competition for university hospitals in new cities, and political interest in revitalizing the local economy are all changing our society. hallim University Chuncheon Sacred Heart Hospital and Kangwon National University Hospital in Chuncheon, Seoul Asan Hospital in Cheongna Medical Complex Town, and efforts to attract a university hospital in Dongtan 2 New City all point in the same direction. in the age of aging, medical infrastructure is not an option, but a necessity.
the time has come to consider healthcare accessibility as important as transportation and education when choosing real estate. What are your thoughts on hospital districts? share your thoughts in the comments. for more information on aging societies and real estate trends, hit the subscribe button.