South Korean Health Insurance Premiums Increase

The National Health Insurance Service announced that 16.71 million workplace subscribers will pay an average of 218,000 KRW more in premiums. Conversely, 3.55 million subscribers with reduced compensation will receive an average refund of 115,000 KRW. The total adjustment amount is estimated at 3.07 trillion KRW, representing a roughly 10 percent increase. Starting this year, the system will automatically process year-end tax settlements for all workplaces using National Tax Service income statements. The National Health Insurance Service reports that the need for additional year-end settlements arises because companies often report changes in employee wages once a year rather than immediately. The service stated that if workplaces reported wage changes as they occurred, the year-end settlement process would be unnecessary. The National Health Insurance Service notes that while workplace-based subscribers have a real-time income tracking system, local subscribers such as the self-employed and freelancers face structural delays in income verification. For local subscribers, premiums are determined based on income confirmed over the previous year. This delay creates a gap in how income is captured compared to salaried employees. Experts suggest that individuals with high financial income should consider diversifying assets among spouses or children to manage income distribution strategies. The revenue from certain taxes, such as a 9.9% low-oil tax, is reportedly excluded from the calculation of income for health insurance purposes. Financial experts are advising taxpayers to review these structural changes to mitigate the impact of rising premiums.