South Korea is overhauling its health insurance premium system to increase payments for ultra-high earners and regional subscribers [1].
The Ministry of Health and Welfare said it is implementing these changes to combat deteriorating health insurance finances and resolve ongoing disputes regarding premium equity based on income [1].
Under the current system, individuals with a monthly income of 130 million won and those earning 1 billion won are subject to the same premium rates [1]. To correct this disparity, the government is raising the premium cap for ultra-high earners from 30 times to 40 times the average premium [1].
Officials said they are also considering raising the premium cap for regional subscribers to 20 times the average premium [1]. As a result, the maximum monthly out-of-pocket cost for some individuals will increase from 4.59 million won to 6.12 million won [1].
The restructuring will affect 0.04% of workplace subscribers and 0.02% of regional subscribers [1]. The government said it expects these adjustments to generate an additional 751 billion won in annual revenue [1].
Beyond the upper limits, the government is adjusting the floor of the system. The minimum monthly premium is being revised to 22,260 won to align with the minimum wage [1]. This replaces the previous minimum premium of 80,000 won [1].
“The government expects these adjustments to generate an additional 751 billion won in annual revenue.”
This policy shift represents a move toward a more progressive taxation model within the national health system. By targeting a tiny fraction of the population—less than 0.1% of subscribers—the government aims to secure significant funding without triggering widespread public backlash, while simultaneously addressing the perceived unfairness of a flat cap for the wealthiest citizens.
