Jeffrey Wade
South Korea offers excellent medical services with low insurance premiums. The country's healthcare system is based on the National Health Insurance Service (NHIS), a public health insurance programme run by the Ministry of Health and Welfare. The NHIS is funded by a combination of employee taxes, government subsidies, tobacco surcharges and outside contributions. On average, workers have 5% of their pay deducted from their monthly salaries to support the system, with the cost shared between employees and employers. For the self-employed, premiums are set on a sliding scale based on income and family size. Those who are unable to pay into the NHIS are offered medical insurance through the Medical Aid Program, a social welfare programme that provides healthcare services to low-income groups. Foreigners living in South Korea for six months or longer are required to enrol in the NHIS, while short-term visitors should consider travel insurance.
| Characteristics | Values |
|---|---|
| Quality of Healthcare | Ranked 3rd best in the world by the Legatum Institute |
| Healthcare Spending | South Koreans pay 30.25% on average, compared to the OECD countries' average of 20% |
| Healthcare Coverage | Universal healthcare |
| National Health Insurance Service | Mandatory, covers nearly all citizens |
| Funding Sources | Employee taxes, government subsidies, tobacco surcharges, outside contributions, and income |
| Average Contribution | 5% of monthly salary, shared between employee and employer |
| Self-Employed Contribution | Based on income and family size |
| Low-Income Citizens | Exempt from NHIS taxes and covered by the Medical Aid Program |
| Foreigners | Required to enroll in NHIS if residing in South Korea for six months or longer |
| Wait Times | Long wait times, especially in rural areas |
| Translation Services | Available in English and Russian in Seoul and Busan |
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What You'll Learn
Mandatory social health insurance
South Korea's healthcare system is based on the National Health Insurance Service (NHIS), a public health insurance programme run by the Ministry of Health and Welfare. The NHIS is funded by a combination of employee taxes, government subsidies, tobacco surcharges and outside contributions. On average, workers contribute around 5% of their monthly salaries to the NHIS, with the employer and employee sharing this tax burden equally. For the self-employed, insurance premiums are set on a sliding scale based on income and family size.
Participation in the NHIS is mandatory and covers nearly all citizens of the country. The NHIS provides healthcare coverage to all citizens, and the major sources of its funding include contributions from those who are insured and government subsidies. The Medical Aid Program is a form of public assistance that uses government subsidies to provide healthcare services to low-income groups who are unable to pay NHIS contributions. The Ministry of Health and Welfare oversees the NHIS and its two fundamental institutions: the NHIS and the Health Insurance Review & Assessment Service (HIRA). HIRA conducts claims reviews and quality assessments of healthcare services.
In 2024, the Ministry of Health and Welfare announced a 2024-28 comprehensive plan supported by more than 10 trillion won (USD 7.47 billion). The plan aims to better compensate undervalued medical services, address the shortage of medical professionals in certain sectors, and tackle issues of overtreatment and overspending in the national healthcare system.
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Medical aid for low-income citizens
South Korea's healthcare system is based on the National Health Insurance Service (NHIS), a public health insurance programme run by the Ministry of Health and Welfare. South Koreans of sufficient income must pay contributions to the NHIS to insure themselves and their dependants. On average, workers see 5% of their pay deducted from their monthly salaries to support the healthcare system, with employees and employers sharing this tax burden. For the self-employed, contributions are based on income level and family size.
Low-income citizens who are unable to pay into the NHIS are offered medical insurance through the Medical Aid Program, a social welfare programme jointly funded and run by the central and local governments. Local governments select the beneficiaries of the programme. The Medical Aid Program is a form of public assistance that uses government subsidies to provide healthcare services to low-income groups. It is comparable to the Medicaid programme in the US.
The public healthcare system in South Korea is a two-tiered system, with the lowest-income population covered by the Medical Aid programme, and the remaining population covered by the National Health Insurance. The near-poor, a relatively low-income population that is excluded from the Medical Aid programme due to exceeding the income threshold, experiences insufficient use of medical services and high out-of-pocket expenses due to a lack of coverage under the NHI programme.
In 2006, about 96.3% of South Korea's total population was under the National Health Insurance Program, while the remaining 3.7% of the population was covered by the Medical Aid Program. However, approximately 10% of the total population of South Korea is below 120% of the poverty line, and of these, only 3.16% are Medical Aid beneficiaries. This means that a significant number of low-income persons did not receive Medical Aid eligibility, even though they are poorer than the near-poor.
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Private insurance for expats
South Korea has one of the most modern and developed healthcare systems in the world, with highly trained and experienced medical professionals. The country's National Health Insurance (NHI) system is mandatory for all residents, including most expatriates. The NHI is managed by the National Health Insurance Service (NHIS).
Expats are required by law to sign up with the NHI if they are staying in the country for longer than six months. The amount expats pay for the NHI varies depending on employment status and salary. On average, it costs 110,000 KRW per month (around €80). Expats working for South Korean companies with more than five foreign employees will be automatically enrolled in the NHI through their employer.
While the NHI provides solid foundational coverage, many expats in South Korea opt for private health insurance to enhance their protection and access to medical services. Private insurance often covers a wider range of treatments and services not included in the NHI, such as dental and vision care. It also offers higher coverage limits for expensive procedures or long-term care.
Before enrolling in the NHI, expats must first receive their Alien Registration Card from the Korean Immigration Service office. This process can take several months, during which time expats are not covered by the NHI. Therefore, it is advisable to purchase a South Korea private health insurance plan to ensure full protection from the time of arrival in the country.
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Public vs. private funding
South Korea has universal healthcare, but it isn't free. The South Korean healthcare system is administered through the National Health Insurance Service (NHIS), which combines numerous different insurance programs into a single national health insurer. The NHIS is funded by a combination of employee taxes, government subsidies, tobacco surcharges, and outside contributions. On average, workers contribute around 5% of their monthly salaries to the NHIS, with the employer and employee sharing this tax burden equally. For the self-employed, contributions are set on a sliding scale that takes into account both income and family size. Those who are unable to pay into the NHIS are still offered medical insurance through the Medical Aid Program, a social welfare program jointly run by the central and local governments.
While South Korea's healthcare system is publicly funded through the NHIS, a significant portion of healthcare is also privately funded. Many people choose to purchase additional private medical insurance to supplement their NHIS coverage. This is because, under the NHIS, patients are expected to pay for a portion of their medical bills, which can lead to higher overall healthcare spending. Private healthcare spending in South Korea exceeds 715.9 billion Korean Won (approximately $544 million), while the government spends over 21,588 billion Korean Won (about $1.64 billion) to subsidize healthcare.
The high cost of healthcare in South Korea has put a strain on the government, particularly as the country has a rapidly aging population that requires increased medical benefits. As a result, the South Korean government has experienced deficits of over 4130 billion Korean Won, leading to legislative changes that allow the government to allocate more funds to the National Insurance Act fund.
Despite the challenges of funding, South Korea's healthcare system is highly regarded and has been ranked as one of the best in the world by various organizations. The country's response to the COVID-19 pandemic positioned it as a model for the rest of the world, and it is well-equipped with advanced medical technology. South Korea offers excellent public healthcare, with high satisfaction rates among its citizens.
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Healthcare access and satisfaction
South Korea's healthcare system is based on the National Health Insurance Service (NHIS), a public health insurance programme run by the Ministry of Health and Welfare. The NHIS is funded by a combination of employee taxes, government subsidies, tobacco surcharges, and outside contributions. On average, workers contribute 5% of their monthly salaries to the NHIS, with employees and employers sharing this tax burden. The self-employed pay contributions based on their income and family size, while low-income citizens are exempt. Those who cannot pay into the NHIS are covered by the Medical Aid Program, a social welfare programme jointly run by the central and local governments.
South Korea's health insurance system is universal, covering nearly all citizens. Insured individuals can freely select medical facilities without restrictions on location or type, although this has led to an imbalance, with patients favouring larger, well-known hospitals in urban areas. This has resulted in overcrowding and limited access to healthcare in rural areas, where 90% of physicians live and work. The South Korean government has been criticised for failing to address these disparities and provide adequate working conditions for physicians in rural communities.
Despite these challenges, South Korea offers excellent medical services with relatively low insurance premiums. The country's healthcare system incorporates both Western and Eastern medical practices, including alternative treatments like acupuncture and cupping, which are covered by the NHIS. South Korea has also been recognised for its successful response to the COVID-19 pandemic and its high survival rates for colorectal and cervical cancer.
Public satisfaction with the South Korean healthcare system has been consistently high, with the quality of care being the most important factor. A 2011 study by the Ministry of Health and Welfare surveyed 1573 adults in Seoul, Gyeonggi, and Busan, evaluating satisfaction across three factors: access to care, cost of care, and quality of care. The study found that the quality of care had the largest impact on overall satisfaction, followed by residence and marital status.
However, healthcare providers in South Korea have faced challenges due to the low prices set by the health insurance system for medical services. This has led to issues with reimbursement, treatment time, and burnout among healthcare professionals.
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Frequently asked questions
The cost of medical insurance in Korea varies depending on income and family size. On average, workers see 5% of their pay deducted from their monthly salaries to support the healthcare system, with the employer paying half and the employee paying half.
Yes, medical insurance is mandatory in Korea and covers nearly all citizens of the country. The National Health Insurance Service (NHIS) was founded in 2000 to combine numerous different insurance programs into one national health insurance provider.
The National Health Insurance Service covers hospitals, clinics, and pharmacies throughout the country. It also covers alternative treatments like acupuncture and cupping.
Foreigners living in South Korea for six months or longer are required to enroll in the NHIS. Those who don't enroll may face consequences when applying for visa extensions.
