Over the next five years, the Korean government plans to invest 150 billion won ($128.2 million) in laying the high-tech infrastructure to bolster the so-called "silver businesses" that cater exclusively to senior citizens.

Recognizing the lucrative potential of the market for goods and services tailored to the booming population of senior citizens, the Ministry of Commerce, Industry and Energy yesterday addressed the need to promote such industries. 

According to figures from the Samsung Economic Research Institute, the global market for silver digital technology is expected to expand to about $260 billion by 2010. 

It has been on a constant rise since 2000, surging an annual 12 percent on average. By next year, the market should bulge to $170 billion, the think tank forecast.

In Japan, a country known for its ageing population, the market for medical equipment has grown that it should soon match the semiconductor business. 

Based on the Commerce Ministry's plans, the government will part with 95.1 billion won by 2009. Provincial governments will be asked to pony up 33 billion won, while the private sector pitches in 21.4 billion won. 

"Investing in growing markets is all a part of achieving per capita GNP of $20, 000," says Jung Joon-suk from the ministry's Industrial Environment division.

Most of the money raised by the government will be poured into the development of high-tech medical equipment designed to meet the needs of the elderly, Jung said. 

Meanwhile, experts stress that a proper environment to nurture silver industries and consistent state support are crucial ingredients for future growth of the sector. 

"Korea needs a master plan to turn the business into a steady source of profit that benefits both the economy and the growing elderly population," said Ko Jung-min, a researcher at Samsung Economic Research Institute. 

He called for greater government support for manufacturers so that local companies become capable of developing their own equipment instead of depending so heavily on imported parts. 

"And above all, senior citizens must have a stable source of income to create the demand for silver industries," he added. 

Since last year the government has been increasingly widening its scope of investment to include silver industries. 

As part of its five-year plan to promote such businesses, the Commerce Ministry last month sponsored the opening of a research and consulting center for small and midsize apparel manufacturers targeting the seniors market.