"You Must Prepare 30 Years in Advance"... Japan's 54 Trillion Won "Well-Dying Industry" [Weekend Money]

'Shukatsu' as an Inevitable Practice in Japan's Super-Aged Society
Market Restructuring from Funerals to Digital Legacy

The "Shukatsu" (終活) industry ecosystem in Japan has grown to a scale of approximately 50 trillion won, and analysts in the securities industry suggest that Korea, with its rapidly aging population, should also prepare for this trend.

"The Era of Family Arranged Funerals Is Over"... Rise of Practical Funeral Platforms

Shukatsu refers to the culture of planning the end of one's life independently. Much like university students engage in job-hunting activities to secure good positions, people entering the twilight of their lives go through the process of preparing for a regret-free conclusion on their own.

Elderly people are engaged in crafting activities at a daycare center in Seongbuk-gu, Seoul. Photo by Jinhyung Kang

According to a recent report by Daishin Securities, Japan entered a super-aged society in 2005 and began to consider "how to die." As of last year, the Shukatsu industry ecosystem had grown to 5.6 trillion yen (approximately 54 trillion won).

In the past, funerals were grand events that showcased the prestige of the family, but now, "family-only funerals" with only close relatives and friends have become the norm. In fact, the proportion of traditional funerals in Japan dropped from 59% in 2015 to 30% in 2024, while family-only funerals have become mainstream at 50%. The average funeral cost has also plummeted from 1.84 million yen to 1.19 million yen. Researcher Nami Sun at Daishin Securities pointed out, "The era when families naturally took care of funerals and inheritance is coming to an end."

Funeral matching platform Kamakura Shinsho is one of the companies targeting this niche. The company introduced a transparent, online data-based comparison service to the previously opaque funeral market, surpassing 1 million consultation cases. Other key players leading market restructuring include Tear, which has introduced fixed pricing, and industry veteran San Holdings.

Shukatsu is now evolving into digital legacy management via smartphones. With the smartphone penetration rate among Japanese people in their 70s reaching 71.9%, handling social media accounts, subscription services, and virtual assets has emerged as a new concern. As a result, "Last Message," which delivers messages after death, and "Sumabo," which allows people to memorialize the deceased at specific locations via augmented reality (AR), are among the ending tech solutions drawing attention.

Korea Also Enters the "Well-Dying" Era... "A Society Preparing for the End"

Korea's situation mirrors that of Japan. Ahead of entering a super-aged society last year, Korea's cremation rate surpassed 95%, and the number of people who have registered advance directives for life-sustaining treatment exceeded 3.2 million. With the proportion of single-person households surpassing 35%, "preparing for death alone" has now become an unavoidable reality.

Researcher Nami Sun analyzed, "The perception that preparing for death actually leads to living life more fully is taking hold," emphasizing that Shukatsu is not just an industry but a continuous trend. She also forecast that a new industry ecosystem combining funeral services, trusts, and digital services is highly likely to form in Korea as well.

In particular, data competitiveness beyond simple service provision is considered the essence of ending tech. When customers begin using such services in their 60s, their health, asset, and family information accumulates over the next 20 to 30 years until their death. This data becomes a powerful entry barrier, not only guiding funeral services but also connecting to will trusts and the sale of financial products.

Researcher Nami Sun stated, "Platforms that connect and standardize information in this area are likely to secure market dominance. Relationships that begin in one’s 60s are accumulated as data over 20 to 30 years. This dataset, which includes digital legacy, advance directives, and family information, can be expanded to product recommendations, service connections, and financial planning, creating a strong entry barrier." She concluded that the key is transitioning to a business model that maximizes customer lifetime value (LTV), going beyond simple funeral agency services.

This content was produced with the assistance of AI translation services.