South Korea health insurance funding fails to meet legal mandate

South Korean government funding for the National Health Insurance (NHI) service is facing scrutiny as the proposed 2027 budget fails to meet the legally mandated support rate from the general account. While the total government contribution is expected to reach a record high of 13.8 trillion won, the support rate from the general account is projected at 12.5%, falling short of the 14% statutory requirement.

The NHI is facing financial pressure, recording a deficit of 364.4 billion won as of July due to rising expenditures from an aging population and the strengthening of essential and public medical services. Representative Nam In-soon of the Democratic Party has urged the government to fulfill its legal obligations, noting that the government is expected to see significant tax revenue surpluses.

In response, the National Health Insurance Workers' Union held a picket protest to demand the normalization of state support and the abolition of the sunset clause on government funding. The union argues that the burden of rising medical costs due to low birth rates and an aging society should not be shifted entirely to insured citizens through increased premiums.