South Korea's national health insurance system recorded its largest-ever deficit in 2024, surpassing KRW11.3tn ($7.7bn).
Data from the National Health Insurance Service (NHIS), revealed that the agency collected KRW83.952tn in premiums against payments amounting to KRW95.2529tn on benefit reimbursements, which resulted in a deficit of KRW11.3tn.
The deficit in the premium balance steadily increased from KRW2.4533tn in 2015 to KRW10.3001tn in 2019. While the deficit decreased to KRW9.3442tn in 2020 and KRW6.4995tn in 2021 during the COVID-19 pandemic, it rebounded in 2022. Compared to 2015, the deficit in 2024 was 4.6 times higher.
However, when factoring in annual government subsidies, which account for 13 to 15% of premium income, and reserve fund earnings, the fiscal balance of the national health insurance system turns into a surplus. Last year, the overall fiscal balance recorded a surplus of KRW1.7244tn.