Considering the current rise in elderly population, institutions and facilities caring for the elderly are currently unable to satify the growing needs of the aged wanting the better qualities of life. Therefore, this study will analyze institutions and policies for the elderly in Japan, which has already experienced the rise in elderly population about 30 years earlier than Korea. Because the living conditions of Japan is somewhat similar to that of Korea, analyzing its solutions, both governmental and private, will help better understand the current situations of Korea and possibly offer guidelines as to better serve the growing demands of the aged. In Japan, the social welfare policies directed at caring for the elderly are mainly directed by the government: however, the private services tend to be more adroit at meeting the ever-changing demands of the elderly. Incidentally, the privately owned elderly homes of Japan are a major part of so called the "Silver Industries". The elderly home that are run by private corporations consititute 50 percent of all private institutions for the elderly. These homes tend tobe situated in a city, or near a city environment, serving 25 to 99 people. The types of such homes can be classified from A to D,E,F, reflecting the various services offered by such homes meeting the various demands by the elderly populatiov. Analyzing the social tred of Japan for theelderly, it can be said that the responsibility of the elderly should not only be relied upon the government, but to the society as whole, both public and private. The ever-changing demands of the elderly, wanting better qualities of life, can be better served by systematic analysis of the demands and the various solutions to such demands. Also, the necessary governmental policies in support of elderly welfare, will be needed.be needed.