Kang Cheong-hee, president of the National Health Insurance Service (NHIS), said on Friday, October 16, that “stable government funding is essential” to address financial problems caused by increased health insurance spending.


Appearing that morning before the National Assembly Health and Welfare Committee for an audit of the NHIS and other agencies, Kang made the remarks in response to Democratic Party of Korea lawmaker Lee Su-jin, who pointed out that government funding for the NHIS stood at around 14.4%, below the statutory 20% benchmark.


“We have entered a super-aged society, and health insurance spending is rising substantially due to changes such as the reform of the medical system,” Lee said. “The current account balance is expected to run a deficit this year, and difficult conditions will continue for some time, yet government funding for health insurance has consistently fallen short of the statutory benchmark.”


Yonhap News Agency

Yonhap News Agency

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Lee added, “The amount left unpaid by the government over the past 10 years alone is about 20 trillion won. Health insurance is a core social safety net. European countries provide around 50% of its funding, Taiwan provides 36%, and Japan about 28%, while we are failing to meet even the much lower statutory benchmark of 20%.”


Lee also raised the introduction of a special judicial police system for the NHIS to prevent financial leakage from illegal practices, including fraudulent claims and hospitals illegally established by nonmedical personnel, alongside the issue of government funding. Kang replied, “I fully agree, and we are working hard to move it forward.”



In a work report that day, Kang said, “To improve the system’s sustainability through stable financial management, we will secure a stable revenue base and manage spending more rigorously. We are pursuing amendments to laws and regulations to secure stable government funding, and will respond firmly to illegal and improper conduct to prevent financial leakage.”


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