There are three main purposes in this study. First, we project the number of elderly dementia population in the future based on the projection of the elderly population in the Kyungpook area. Second, the demands of home-based care service and facility-based care for the elderly dementia are estimated. Thirdly, some policy implications for the improvement of welfare services for the elderly dementia are addressed. The findings of this study are as follows. Considering the size of the elderly dementia population, facilities for the elderly dementia are extremely insufficient and most of the elderly dementia patients rely heavily on home-based care. Although we expect that there will be a rapid increase in the number of the elderly dementia in the next two decades, the social welfare services for them in the future are very unreliable. Home nursing for the demented elderly needs to be recognized by law and financed by the government. In this context, we address some issues regarding the rapid growth of the elderly dementia population in the future and social welfare services for them as well. Finally we suggest some policy implications regarding this matter.