South Korea's national health insurance system is likely to move into deficit financing by the end of 2026.
The South Korean health Minister Jeong Eun-Kyeong recently told the National Assembly's Health and Welfare Committee that the government would discuss using excess tax revenue to increase support to the national health insurance system.
According to media reports, lawmakers are also pursuing the legislation course for this purpose.
People Power Party lawmaker Han Ji-a introduced a revisions bill in the house recently that would state more explicitly that general-budget support must equal at least 14% of projected premium revenue and support from the health promotion fund must equal at least 6%. According to government reports, the government funding in 2026 continues to fall short of the level set by law, prompting calls for a more stable financing system.
Under the National Health Insurance Act and National Health Promotion Act, government support is supposed to be equal to 20% of projected annual health insurance premium revenue.
The framework consists of funding equivalent to 14% from the general government budget and 6% from the National Health Promotion Fund, which is financed largely through tobacco taxes. The funding system was introduced in 2007, but the government has never provided the full statutory proportion.
From 2016 through 2025, cumulative government support fell by KRW19.4531tn ($14.03bn) short of the amount calculated under the statutory benchmark. The funding issue has gained urgency as the health insurance system's finances are declining.
The Health Ministry's second comprehensive national health insurance plan for 2024 through 2028 projects that the programme's annual balance will turn negative beginning this year.