A visitor stands at the National Health Insurance Service office in Jongno District in central Seoul in 2024.YONHAP
The government on Wednesday abruptly postponed the announcement of a planned health insurance premium hike, originally scheduled for Thursday, amid concerns that raising another tax-like burden could fuel public backlash following proposed property tax changes and a recent stock market slump.
“Discussions on agenda items, such as a plan to reform National Health Insurance Service [NHIS] coverage, had been postponed to allow for broader consultation,” the Ministry of Health and Welfare told reporters on Wednesday.
The Health Ministry had planned to convene its health insurance policy deliberation committee on Thursday to unveil a package of reforms aimed at reducing medical expenses, along with changes to the health insurance premium system — notably higher minimum and maximum premium caps.
The NHIS, which administers Korea's universal public health insurance program, finances the country's universal health care system through mandatory premiums from its citizens.
A draft proposal included raising premiums for salaried employees with nonwage income, such as interest, dividends, rental income and business earnings. The increase would come from a reduction in the deduction applied to such income.
The proposal also called for raising the monthly premium ceiling for the highest-income subscribers — the top 0.04 percent of workplace subscribers and the top 0.02 percent of regional subscribers — from 4.59 million won ($3,200) to 6.12 million won.
The Service would also gradually increase the minimum monthly premium for low-income workplace subscribers from 10,080 won to 22,260 won, according to the proposal.
The National Health Insurance Service's Mapo Branch in Mapo District, western SeoulNEWS1
Reducing deductions on nonwage income for workplace subscribers would affect an estimated 1.78 million people, or about 8.9 percent of all workplace subscribers. The proposal raised concerns that the changes would increase the financial burden on households.
Sources inside and outside the Health Ministry reportedly find such criticism could become a political liability for the government and the ruling party.
The Health Ministry is not expected to shelve the premium reform indefinitely as the NHIS fund is projected to be depleted by 2033 due to Korea's low birthrate and aging population. Consequently, higher premiums are widely seen as unavoidable.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
