Soaring Healthcare Costs Threaten korean Retirees‘ Financial Security
SEOUL – A surge in medical expenses, particularly for the elderly, is rapidly depleting retirement funds for many South Koreans, new data reveals. Total medical expenses reached a record KRW 193.5 trillion in 2023, with KRW 91.888 trillion – nearly 44.9% - attributed too senior healthcare. This escalating financial burden is raising concerns about the sustainability of the national health insurance system and the economic well-being of a growing aging population.
The rising costs disproportionately impact seniors, who represent 18.9% of the total population covered by health insurance but account for a significantly larger share of medical spending. Last year,the average annual medical cost for a citizen aged 65 or older was 5,508,000 won,2.4 times higher than the overall average of 2,261,000 won. Over the past five years, elderly medical expenses have jumped by 38.8%, from KRW 37.6135 trillion in 2020.
national health insurance premiums totaled KRW 84.1248 trillion in 2023, a 2.5% increase year-over-year. Premiums break down as KRW 74.6196 trillion from work insurance and KRW 9.5052 trillion from regional insurance.The average monthly household premium is 134,124 won, while employer-subscribed premiums average 159,184 won and local subscribers pay 82,186 won monthly.Annually, individuals pay an average of 1,636,130 won in premiums, alongside 1,875,956 won in salary costs.
The healthcare sector itself is expanding to meet demand. As of the end of last year, South Korea had 103,308 medical institutions – hospitals, clinics, and pharmacies – a 1.5% increase from the previous year. Personnel within these institutions grew by 2.0% to 487,994, including doctors, nurses, and pharmacists.
Despite the expansion, chronic disease remains a significant driver of healthcare utilization.Last year,22.94 million peopel received treatment for chronic conditions,with high blood pressure (7.62 million) and joint disease (7.44 million) being the most prevalent.Mental and behavioral disorders affected 4.32 million individuals. Serious disease calculations included 2.82 million patients, comprised of 1.5 million with cancer, 1.1 million with rare and incurable diseases, and 110,000 with heart disease.
Birth rates are slightly increasing, with 236,926 deliveries in 2023, up 2.8% from 230,510 the previous year, though the number of childbirth facilities continues to decline, dropping 4.9% from 468 to 445.
